Decision details

Peter Hibbert and Leighton Cardwell from the consultants Jacobs presented a report (circulated) regarding the Blackpool Tramway Extension application seeking conditional approval.

It was reported that the Blackpool Tramway Extension scheme will provide a new link from the current tramway on the Promenade adjacent to the North Pier along Talbot Road to Blackpool North station. 

The projected outturn capital cost of the Blackpool Tramway Extension scheme as set out in the Outline Business Case could rise from the £18.2m advised at Programme Entry to £24m; the agreed capital contribution from the Local Growth Fund through the Lancashire Growth Deal is £16.4m.  Blackpool Council has confirmed that it will meet the balance, but has requested that the Lancashire Enterprise Partnership consider allocating any future Growth Deal underspend or additional funding to support the scheme, to the extent that it becomes necessary at Full Approval.  The current local contribution amounts to just over 31% of the total projected scheme capital cost.

Jacobs have undertaken an independent assessment of the Outline Business Case on behalf of the LEP.  Jacobs confirmed they were satisfied that the project had been developed to the expected standard in most areas and recommended that Conditional Approval be granted to enable the scheme to progress to Full Business Case submission.  The revised scheme is predicted to deliver high value for money with a benefit to cost ratio of 2.86; it also has the potential to generate between £400,000 and £700,000 of wider economic benefits per annum for the local economy.

Jacobs advised that a number of conditions would need to be addressed as part of the Full Business Case submission, including confirmation of scheme funding arrangements once final costs are known.

Resolved:  The Committee considered the Outline Business Case report prepared by Jacobs and recommended that the Lancashire Enterprise Partnership (LEP) Board grant the scheme Conditional Approval at its meeting to be held later on Tuesday 5^th April 2016.