Pledge to taxpayers over bridge costs

Jul 17 2008 by Mark Smith, Runcorn and Widnes Weekly News

THE cost of the Mersey Gateway project has risen by £55m since the proposals were first drawn up.

However, project bosses insist the increased cost will be met by private business rather than taxpayers.

The overall figure has increased from £335mto £390m, with planning chiefs attributing the increase to enhancements made to the scheme following a consultation programme.

A project spokesman said: “The move from a £335m cost to £390m reflects the improvements and changes to the project - such as the improved plans around the Central Expressway in Runcorn - that have come about during the course of our ongoing consultation programme.

“Because of the innovative way the scheme is financed through a Private Finance Initiative, none of this cost will be paid for by the public purse. It will all be met by the private sector operator that will build and operate the project.”

Bosses said the £390m figure will be met by £86m from the Department for Transport, £123m in Government PFI credits and £181m from the private sector.

The spokesman added: “The yet to be appointed private sector company that will build and operate the scheme will use toll revenue from a 30-year concession to pay off a loan that funds the construction.

“The Government is also contributing the £123m in PFIcredits over the 30-year concession period in order to keep toll levels down.”