Project Evaluation - Value for Money

Initial Indications

The economic appraisal results for the project (as presented within the project’s SBC) predicted a Net Present Value (NPV) of £785.35m and Benefit to Cost Ratio (BCR) of 3.14.

Based on the comparisons presented in The Operation of the Project and Process Evaluation section, which suggest that the TEE benefits could be greater than expected (due to the project returning larger journey time benefits than predicted as part of the project’s assessment) the NPV and BCR of the project could be greater than predicted.

Due to the nature of the project’s contract (as detailed in Section 3.10), investment costs have not been reviewed as part of the 1YA Evaluation.

Value for Money: Key Findings

Taking account of the comparison of predicted and actual AADT flows and journey time savings, at the time of the 1YA Evaluation, the economic benefits of the project could, potentially, be greater than predicted. Due to the nature of the project’s contract, investment costs have not been reviewed as part of the 1YA Evaluation.

The effect of potential increase in TEE benefits is such that, overall, the NPV and BCR could be greater than predicted at the time of the project’s assessment.

The likely benefits of the project extend beyond those quantified as part of the project’s assessment process. As such, it can be expected that the project is contributing towards the delivery of significant wider economic benefits at a regional and national economic level.

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