Four local authority transport projects get back under way

Four local authority transport projects threatened with the axe could now go ahead after more than £200m in cost savings were identified.

The four projects moving to the next stage of the funding approval process are:

• Phase 2 of the Nottingham Express Transit: this would involve two new extensions to the tram scheme, which first opened in March 2004. The scheme is being procured through a Design, Build, Finance, Operate and Maintain (DFBO) PFI arrangement
• Isle of Wight Highways Maintenance
• Sheffield Highways Maintenance
• London Borough of Hounslow Maintenance.

The Department for Transport said the schemes could now continue their procurement processes and – subject to approval of a final business case – be able to award the service contracts.

Transport Minister Norman Baker said: "Following the spending review last year, we challenged the four local authorities to look again at the cost of the PFI projects they are promoting to ensure we get maximum value for every pound we spend.

“The Department has been working closely with the authorities involved to ensure these projects are affordable. I am pleased that they have been able to rise to the challenge and have identified savings of 21% from the original estimated costs.”