Agenda item

Report of the Leader and Cabinet Member for Strategic Growth attached.

The Leader and Cabinet Member for Strategic Growth presented the report which sought Cabinet’s endorsement of the Strategic Outline Business Case for the Northern Gateway’s Western Access scheme (Pilsworth Road Corridor Improvements). The Strategic Outline Business Case (SOBC) stage represents the first step in the on-going development and refinement of a HM Treasury (Green Book) compliant business case for the Western Access scheme. The SOBC’s preliminary concept designs and associated high level cost estimates will now be reviewed and further updated as part of the development of the Western Access scheme’s Outline Business Case during 2025.

Decision:

Cabinet:

·         Endorsed the Strategic Outline Business Case for the Northern Gateway’s Western Access scheme (Pilsworth Road Corridor Improvements) as a basis for on-going review and development during the scheme’s Outline Business Case stage, including the identification of a preferred scheme option.

·         Delegated the endorsement of future iterations of the Western Access scheme business case to the Director of Law and Democratic Services in consultation with the Executive Director of Place and Director of Finance and the Council Leader and Cabinet Member for Strategic Growth.

·         Approved the appointment of Balfour Beatty UK Ltd as the scheme’s main construction Contractor to undertake pre-constriction stage work packages covering the Outline Business Case / RIBA 3 Stage and Full Business Case / RIBA 4 Stage.

·         Delegated final acceptance of a final contract sum up to a provisional maximum of £600,000 covering the Outline Business Case stage work packages, to the Director of Law and Democratic Services in consultation with the Executive Director of Place and Director of Finance and the Council Leader and Cabinet Member for Strategic Growth.

·         Delegated finalisation and sealing of the pre-construction services contract including appropriate break clauses, to the Director of Law and Democratic Services in consultation with the Executive Director of Place and the Council Leader and Cabinet Member for Strategic Growth.

Reasons for recommendations:

·         Significant progress is now being made to progress the delivery of the Northern Gateway Investment Zone (‘Places for Everyone’ Joint Development Plan’ allocation JPA 1.1), which is the largest designated development site in the Atom Valley Mayoral Development Zone (MDZ).

·         The Western Access scheme (Pilsworth Road Corridor Improvements) will provide the necessary off-site, highway and transportation infrastructure required to access the early development phases of the Northern Gateway Investment Zone (IZ) site (JPA 1.1 allocation). The construction of the Western Access scheme will create the potential capacity to unlock circa 3.5M sq/ft – 4M sq/ft employment generating uses, including advanced manufacturing commercial floor space.

·         The Western Access scheme Strategic Outline Business Case (SOBC) provides the robust basis for the on-going review and further development of the scheme’s concept design and business case during the scheme’s pre-construction stage. Initially this will cover the preparation of the scheme’s Outline Business Case (including identification of a preferred scheme option) in line with HM Treasury’s ‘Green Book’ business case procedure, and the associated development of the scheme’s planning designs and costings in line with the RIBA 3 planning stage.

·         IZ year one revenue grant funding has now been allocated from 1st April 2024. Following Cabinet’s approval of the Grant Funding Agreement (GFA) in November 2024, the year one grant (£800,000) has now been released and there is now an urgent need to swiftly and flexibly progress the development of the Western Access scheme to meet the challenging grant funding milestone deadlines.

·         These GFA milestones include the production and approval of the Western Access scheme’s Outline Business Case and associated RIBA 3 planning designs by December 2025, and thereafter the production of the scheme Full Business Case and RIBA 4 technical designs and costings by March 2027. GFA milestones also stipulate that the procurement of the scheme’s main Contractor (and associated multi-disciplinary team) should occur during November 2024, and the subsequent contractual appointment to be in place by February 2025.

·         In adherence with the above, the procurement of Balfour Beatty UK Ltd and its associated multi-disciplinary team to undertake the scheme’s pre-construction work packages under a two stage Design & Build contract, has now been completed in full compliance with the Council’s Corporate Procurement and Contract Procedure Rules, and the Public Contracts Regulations 2015, and in alignment with the approved Western Access Procurement Strategy.

Alternative options considered:

·         That the recommendations are not approved, and we do not utilise the approved year 1 grant funding, with the funding being reallocated elsewhere in Greater Manchester. This presents a high risk to the delivery of the Places for Everyone joint development plan and specifically, the delivery of the Western Access scheme and the Northern Gateway Investment Zone (JPA1.1 allocation).

·         Delaying the approval of the pre-construction Contract will delay the preparation of the Western Access scheme Outline Business Case (OBC) and associated RIBA 3 planning designs. Consequently, this will delay the delivery of the subsequent Full Business Case (FBC) / RIBA 4 technical design stage during 2026 and thereafter delay the start of the construction delivery (RIBA 5 stage) of the Western Access scheme which under the grant funding requirements should commence by April 2027 and be completed by March 2029.

·         Delaying the Western Access scheme OBC, FBC and construction delivery stages will jeopardise the delivery of the early phases of the Northern Gateway site Page 379 development. The delivery of the Western Access scheme is critical to providing the necessary highway capacity and associated transportation improvements required to unlock the Phase 1 IZ site (JPA 1.1 allocation).

·         Delaying the delivery of the Western Access scheme would erode confidence in the Council’s ability to deliver a key strategic priority for both Bury and its strategic partners, including Rochdale Borough Council, Greater Manchester Combined Authority, Transport for Greater Manchester and National Highways. Delaying the delivery of the Western Access scheme would undermine supporting the delivery of a number of major, corporate strategies and Team Bury initiatives including the Council’s ‘Let’s Do It’ Vision and Strategy, Northern Gateway Strategic Development Vision, Atom Valley MDZ Vision, Northern Gateway Development Framework (supplementary planning document), Bury’s Economic Strategy, amongst others.