Decision details

Simeon Butterworth, Peter Hibbert and Leighton Cardwell (all from Jacobs) presented a report outlining the comprehensive review they had undertaken regarding the Blackburn to Manchester Rail Corridor Improvement Scheme.  The Committee were asked to endorse the scheme and request that the Lancashire Enterprise Partnership Board grant Conditional Approval to the scheme at its Board meeting to be held on 10^th February 2015.

The key findings of the review were highlighted to the Committee, with Jacobs recommending the Blackburn to Manchester Rail Corridor Improvement Scheme be granted ‘Conditional Approval’ status to enable the scheme to progress to the Full Business Case stage, subject to the following conditions:

1. Confirmation is received (when the ITT for the new Northern Franchise is publically available) that the Manchester to Blackburn service is to be included as part of the baseline specification for the next Northern Franchise.

2. Confirmation is received (when the ITT for the new Northern Franchise is publically available) that the operational costs of the Manchester to Blackburn service will be funded as part of the next Northern Franchise, thus removing the need for BwDBC to subsidise the scheme.

3. It was reported that the scheme BCR is currently 1.47 (based on latest guidance), rising to 2.25 with the inclusion of wider economic benefits. In accordance with the LEP’s Accountability Framework, the scheme should deliver high VfM (BCR >2 when incorporating both traditional and wider economic benefits), once the target scheme costs are confirmed and with optimism bias applied at 6% (consistent with the DfT’s Rail Appraisal guidance for a scheme at GRIP Stage 5). This is considered the key risk associated with the scheme being granted Full Approval.

4. That the results of a more detailed environmental assessment (including consideration of noise and air quality) demonstrate that the scheme does not have a significant detrimental impact upon any sensitive receptors.

5. That the scheme opening year be confirmed, and if necessary the Business Case (including the economic assessment) be updated accordingly.

6. That clarification be sought that any cost overspends will be met by the Scheme Promoter, Blackburn with Darwen Borough Council (in accordance with the LEP’s Accountability Framework) to ensure that the scheme will be delivered in its entirety.

The Committee sought clarification that the level of optimism bias incorporated into the review was 6%. It was also noted by the Committee that addressing the first two conditions would significantly reduce project risk.

Resolved:  The Committee endorsed the review findings and requested that the Lancashire Enterprise Partnership (LEP) be minded to grant the scheme Conditional Approval at the LEP Board meeting on the 10^th February 2015.