Strategic Outline Business Case

Transcription

1 Capital Programme Business Case A29 Realignment Strategic Outline Business Case Version 0.01 Page 1 of 42

2 Capital Programme Business Case BUSINESS CASE: KEY DETAILS PAGE COMPLETED/UPDATE BY: INITIATIVE MANAGER AT EACH NEW VERSION] Initiative Name: A29 realignment Filename: Location: Project Mgr: Senior Responsible Owner: TBC Matt Davey Gateways: Approval/Gateway Board Planned Date Actual Date Proposal Gateway 1 Gateway 2 Gateway 3 Gateway 4 Gateway 5 Access to Business Case: Does this business case require restricted access on SharePoint? No Progress Reporting: What is/will be, the progress reporting mechanism for this project Highlight reports to Economy hub/h&t hub/scib as required Version Date Author Summary of Changes made v /12/16 Darryl Hemmings V /2/17 Darryl Hemmings V /2/17 Darryl Hemmings V /7/17 Darryl Hemmings Initial draft Incorporating comments from Alan Feist Incorporating legal comments from David Rowlands Incorporating updates following comments by Alex Hall *This section must include review and signature from Finance and Legal. Page 2 of 42

3 Capital Programme Business Case All schemes that involve capital expenditure are required to complete a business case that is reviewed at key points in the scheme s lifecycle. The diagram below outlines the process. Proposal: Proposal To be reviewed at Gateway Proposal The purpose of this stage is to collect information on any new initiative and/or opportunity for funding. At this stage it is expected that: The Strategic Case - is completed in as much detail as possible and will be revised later The Economic Case - is populated with the high level options available and identification of the preferred way forward The Commercial Case identifies the likely delivery route for the scheme The Financial Case discusses the likely affordability and funding arrangements for the scheme The Management Case outlines how we will manage the development of the scheme A decision will be made to approve the use of resources and funds to develop the strategic outline case in readiness for a Gateway 1. Stage 1: Strategic Outline Case (SOC) To be reviewed at Gateway 1 The purpose of the SOC is to confirm the strategic context of the proposal; to make a robust case for change; and to provide stakeholders and customers with an early indication of the proposed way forward having undertaken a high level options appraisal and identification of the short list options with indicative costs. At this stage it is expected that: The Strategic Case completed in full but may be revised later The Economic Case completed to the long-list of alternative options stage, with a recommended way forward and initially recommended short-list for further examination at OBC stage Page 3 of 42

4 Capital Programme Business Case The Commercial Case addressed the fundamentals of any potential procurement or delivery route The Financial Case discusses the likely affordability and funding arrangements for the scheme The Management Case outlines how the programme/project will be set up and managed A decision will be made to approve the use of resources and funds to develop the outline business case in readiness for Gateway 2. Stage 2: Outline Business Case (OBC) To be reviewed at Gateway 2 The purpose of the OBC is to revisit the SOC in more detail and to identify a preferred option which demonstrably optimises value for money. It also sets out the likely deal; demonstrates its affordability; and details the supporting delivery strategy, together with management arrangements for the successful roll-out of the scheme. At this stage it is expected that: The strategic Case revisited The Economic Case completed to the short-list stage with assessment of options and identification of the preferred option The Commercial Case outlines envisaged deal structure(s) and key contractual clauses and payment mechanisms The Financial Case- contains a detailed analysis of affordability and funding arrangements The Management Case develops in more detail how the scheme will be delivered with an outline of the proposed programme/project management arrangements A decision will be made to approve the use of resources and funds to develop the full business case in readiness for Gateway 3. Stage 3: Full Business Case (FBC) To be reviewed at Gateway 3 The purpose of the FBC is to revisit the OBC and record the findings of subsequent procurement activities; together with the recommendation for an affordable solution which continue to optimise value for money, and detailed arrangements for the successful delivery of goods and/or services from the recommended supplier(s). This stage takes place within the procurement phase of the project, following detailed negotiations with potential suppliers but before formal signing of contracts. At this stage it is expected that: The Strategic Case revisited and revised if required The Economic Case the findings of the procurement included in the analysis and recorded The Commercial Case the recommended deal is written-up The Financial Case affordability and funding arrangements confirmed The Management Case the detailed plans for delivery and arrangements for the realisation of benefits, management of risk, and post programme/project evaluation arrangements An investment decision will be made at this stage to deliver and implement the scheme. The next review will be in-line with Readiness for Service. Stage 4: Readiness for Service To be reviewed at Gateway 4 Stage 5: Evaluation & Benefits To be reviewed at Gateway 5 Page 4 of 42

5 Capital Programme Business Case BUSINESS CASE: TABLE OF CONTENTS PART A: EXECUTIVE SUMMARY EXECUTIVE SUMMARY... 6 PART B: DETAILED CASE STRATEGIC CASE ECONOMIC CASE COMMERCIAL CASE FINANCIAL CASE MANAGEMENT CASE FINANCIAL IMPLICATIONS LEGAL IMPLICATIONS EQUALITY IMPACT IMPLICATIONS HEALTH & SAFETY IMPLICATIONS SUSTAINABILITY IMPLICATIONS SOCIAL VALUE ACT IMPLICATIONS PART C: SUPPORTING EVIDENCE Page 5 of 42

6 PART A: EXECUTIVE SUMMARY INITIATIVE NAME A29 Realignment REFERENCE TO RELEVANT BUSINESS PLAN AND/OR COUNTY STRATEGY Yes - STIP plus emerging Arun Local Plan and Coast to Capital SEP PART OF EXISTING CAPITAL PROGRAMME? The scheme is identified in the capital programme for delivery in 18/19-20/21 IF YES, REFERENCE THE PROGRAMME Strategic Transport Investment Programme DIRECTORATE Economy Infrastructure and Environment DEPARTMENT Strategic Planning 1.0 EXECUTIVE SUMMARY 1.1 Executive Summary The A29 Realignment scheme has been identified in the Arun Local Plan to mitigate the impacts on the transport network of strategic development in the Barnham, Eastergate, Westergate area. The scheme will attract significant public and private sector investment leading to the creation of 4,160 new jobs and 30ha of employment land and 2,720 new homes. The project is currently at the Proposal Stage. Additional revenue investment of 500,000 is required in 16/17 and 17/18 to develop a new transport model and a Transport Business Case (including project management cost of 25,000) which will complete stages 1 and 2, in order to access 13m of Local Growth Funding which was allocated to the scheme in-principle in the Growth Deal [Coast to Capital LEP have indicated that they are willing to receive an application for 13m of Local Growth Funding but 700,000 of this will be subject to prioritisation against other potential priorities for investment] Local Growth Funding will only be accessed through preparation of a Transport Business Case and acceptance by Coast to Capital Local Enterprise Partnership. Consideration has been given to a range of potential funding sources and a bid for funding was submitted by Arun District Council to the Homes & Communities Agency was unsuccessful. Therefore, it is proposed that opportunities are identified to forward fund the revenue investment in 17/18 and 18/19 subject to agreeing the terms of an agreement with ADC to repay this amount from future developer contributions. 1.2 Recommendation It is recommended that: 1. Revenue investment of 500,000 is identified in 17/18 and 18/19 to forward fund development a new transport model and Transport Business Case for the scheme (funding to be repaid from future developer contributions secured by ADC and subject to the terms of an agreement) 2. A Project Manager is appointed from within the Major Projects Team (funded from part of the funding allocation) to manage development of the Transport Business Case; and 3. Resources from within the Planning & Transport Policy Team are allocated to project manage development of a new transport model 1.3 Strategic case The strategic context The A29 Realignment scheme has been identified in the emerging Arun Local Plan to mitigate the severe impacts on the transport network 1 of proposed strategic housing development in the Barnham, Eastergate, Westergate area and further development of the strategic employment area known as Enterprise Bognor Regis. 1 Arun Transport Study (2017) Page 6 of 42

7 The primary purpose of the new road alignment is to facilitate development, providing highway infrastructure to assist in the delivery of strategic housing development planned for the area. The new road will also alleviate problems of traffic congestion along the existing A29, notably at the Woodgate level crossing which causes delays to existing traffic on a key access route to Bognor Regis. The scheme will support delivery of strategic developments identified in the Arun Local Plan including; 2,720 new homes and 4,160 new jobs and 30ha of employment land as part of the regeneration of Bognor Regis. It will achieve this by: providing additional highway capacity to accommodate traffic growth associated with new development; providing access to land for strategic development at Barnham, Eastergate, Westergate; improving connectivity to/from Bognor Regis to support regeneration of the town; and improving access for businesses to customer and labour markets through a reduction in traffic delays, improving business productivity and supporting business growth. The scheme has been allocated 13m of Local Growth Funding, in-principle which can only be accessed through preparation of a Transport Business Case and acceptance by Coast to Capital Local Enterprise Partnership. Revenue investment of 500,000 is required in 17/18 and 18/19 to develop a new transport model and a Transport Business Case (including project management costs of 25,000) for the scheme. It is proposed that funding is sought from a range of potential funding sources including external funding bids (a bid for funding has been submitted by Arun District Council to the Homes & Communities Agency) and developer contributions, subject to all relevant planning regulations. In the event that external funding is not secured or if there is a funding shortfall (not exceeding 500,000), it is proposed that this is funded from the WSCC Feasibility Fund Objectives The investment objectives of the scheme are: To secure release of 13m of Local Growth Funding to invest in transport infrastructure improvements by March 2018; To help secure additional private sector investment of approximately 22.1m in the scheme through developer contributions by 2031; To help secure additional private sector investment in local infrastructure improvements associated with planned development up to 2031 that will have wider community benefits by securing delivery of the A29 Realignment which is a critical infrastructure improvement; and To contribute to growth in economic output through raising business productivity and facilitating delivery of new homes and employment floorspace by Benefits The main benefits of the scheme are: Wider economic benefits Delivery of the Coast to Capital Strategic Economic Plan which aims to create new jobs and facilitate delivery of new homes across the Coast to Capital area; Delivery of the Arun Local Plan by enabling delivery of 2,720 new homes and 4,160 new jobs and 30ha of employment land by 2031; Regeneration of Bognor Regis by increasing business productivity and attracting additional investment into the town; Page 7 of 42

8 Transport benefits Improved connectivity between Bognor Regis and labour and customer markets; Improved journey times and journey time reliability on the A29 between its junction with A27 at Fontwell and Bognor Regis by reducing congestion and providing an alternative to the current A29 which is impeded by the Woodgate level crossing; Improved road safety; Enhanced sustainable transport infrastructure; Environmental benefits Avoidance of any adverse environmental impacts, where possible, through the design of the scheme; Provision of mitigation measures to minimise unavoidable environmental impacts of the scheme; and Through a robust approach to environmental appraisal, in line with all relevant local, national and international legislation, ensure that any protected species are protected Risks A summary of the main risks associated with the scheme and associated mitigation are set out in table : Table : Summary of risks and mitigation Risk Mitigation Strategic development at Barnham, Eastergate, Westergate is delayed and/or does not come forward Liaison with developers and local planning authority / planning performance agreement Dependency on developer contributions Explore other potential funding opportunities Cost escalation Avoid scope creep and market testing with contractors Scheme may not meet criteria on value for money and deliverability Initial economic appraisal to gauge whether benefits are likely to meet minimum criteria Identify options for value engineering / phasing Scheme may not be publically acceptable Early engagement to inform identification of short list of options Investment objectives not delivered Liaison with Arun District Council and developers Planning risks increase if Arun Local Plan is found unsound Scheme may be delayed and miss key funding opportunities including, for example, timetable for accessing Local Growth Funding Support the examination of the Arun Local Plan Investment in transport modelling tools and Transport Business Case Liaison with Coast to Capital LEP Robust approach to project planning and management of risks Page 8 of 42

9 1.4 Economic case Key findings The new road will affect trip patterns and traffic volumes within the surrounding area as traffic diverts from other existing routes. To understand the likely impact of these future movements on the local highway network, a high level traffic impact assessment has been carried out. In forecasting the future traffic levels, the assessment takes into account traffic generated from proposed strategic developments within the local area. In particular it assumes 2,000 homes will be developed at Barnham, Eastergate, Westergate and the strategic employment sites associated with the Bognor Regis Enterprise Zone will come forward for development. It should therefore be noted that future traffic increases forecasted across the network are predominately due to traffic generated from developments across the District rather than the A29 realignment scheme proposals. Given the current traffic congestion that occurs across the local highway network it is recognised that a future Do Nothing scenario which includes proposed strategic developments, such as the 2,000 homes at Three Villages site, but does not include a new A29 realignment link road is likely to experience significant traffic delays. These delays will particularly be at locations such as the A27/A29 Fontwell Avenue, the War Memorial Junction, through Westergate Village and at the Woodgate railway level crossing. A full economic appraisal will be carried out to support the Outline Business Case using a traffic model and other appraisal techniques in line with current Government guidance on transport scheme appraisal. Due to the extent of journey times savings that are expected to be generated by the scheme, it is anticipated that the scheme will comfortably achieve a Benefit Cost Ratio (BCR) greater than Preferred option At this stage in the design process, no public consultation on options has been undertaken and the County Council have not yet indicated a preference for any of the options identified in previous feasibility studies. Therefore, it is recommended that early engagement takes place with key stakeholders at an early stage define the shortlisted options that will be taken forward through the development of the Transport Business Case. 1.5 Commercial case Delivery strategy Consultancy services will be required to undertake preliminary design and prepare the Business Case. A project manager from the Major Projects team will also require funding. Contractual arrangements for construction of the scheme will be determined following an assessment of the available options prior to the detailed design stage Key contractual arrangements Professional services will be procured through the WSCC Highways and Transport Professional Services Framework or a suitable alternative. The timing of the various procurement activities will be set out in the overall programme for the scheme. 1.6 Financial case Table of Costs and Funding Arrangements Page 9 of 42

10 ITEM OPTION D, 6 & 12 Capital cost estimate Construction costs 13,279,000 Preliminaries (10%) 1,327,900 Design Fees & Surveys (15%) 2,519,685 Land Costs (20% of construction costs) 2,655,800 Public Inquiry (5% of construction costs) 663,950 Statutory Undertakers ( 500/m) 2,170,000 Optimism Bias/Risk (55% of costs) 12,483,665 Sub total 35,100,000 Revenue cost estimate Project management 25,000 Transport model development 120,000 Transport business case 355,000 Sub total 500,000 Total 35,600,000 FUNDING SOURCES AMOUNT ( ) Status (In bank, Secured, Not secured) Government Grant (Local Growth Funding) Developer contributions (Section 106) 13,000,000 Not secured 22,100,000 Not secured Revenue Contribution 500,000 Not secured Total Funding 35,600,000 There are a number of qualifications/notes provided in the A29 Realignment Feasibility Study which detail the following exclusions: Landscaping costs Flood plain remediation Contaminated soils remediation Traffic signals including crossings Land purchase costs and compensation VAT Diversion of statutory undertakers equipment Post implementation monitoring of benefits The cost estimate provided in the A29 Realignment Feasibility Study included an allowance for design risk and contingencies of 15% which has been removed in section and the Page 10 of 42

11 optimism bias increased from 44% to 55%. This avoids double counting by creating a single allowance for optimism bias/risk and also ensures that the current capital cost estimate is consistent with the currently published Capital Programme. The allowance for risk and optimism bias will be revised as the TBC is developed and through subsequent project stages Overall Affordability and Availability of Funding will be determined through the development of the TBC. 1.7 Management case Key Arrangements Due to the scale of the scheme, a Project Board will be established. The Project Board will represent three areas of interest as follows: Executive: Ultimately accountable for the delivery of the scheme, supported by the Senior Suppliers and Senior User. Senior User: Represents the interests of the end-users of the scheme. This role is currently occupied by a representative of the District Council. However, it is expected to revert to WSCC Asset Management as the scheme progresses towards implementation. Senior Suppliers: Responsible for the design, facilitating, funding, procuring and building of the scheme. Assurance: representatives from Finance (and Legal as required) with governance overseen by the Capital PMO. 1.8 Financial Implications Comments This business case recommends that a revenue investment of 500k is identified in 17/18 and 18/19 to develop a new transport model and transport business case. Funding sources are being explored but have not been agreed and bid amounts need to be confirmed. It is proposed that up to 500k from the WSCC Feasibility Fund is used if external funding is not secured. It needs to be confirmed whether the Feasibility Fund referred to has capacity to meet this commitment, bearing in mind any other bids and whether approval has been sought. This scheme is a 35.1m pipeline scheme in the Capital Programme 2017/ /22 approved by County Council in February The funding is made up of Corporate Borrowing 11.4m, Developer Contributions 11.4m and Local Growth Fund 12.3m. Whilst the business case refers to a 13m LGF investment, Coast to Capital LEP have indicated they are willing to accept an application for this amount, but there is only 12.3m allocated within their programme, as per the funding showing in the Capital Programme, with the difference being met by Corporate Borrowing. The scheme aims to secure private sector investment of approximately 22.1m through developer contributions by The Capital Programme shows funding of 0.35m developer contributions in 18/19, and m in 21/22. Table of this report states that the developer contributions are not secured. There is therefore a risk until developer contributions are secured, of a funding shortfall of up to 11.4m. The business case does not mention what will be done with the 10.7m developer contributions expected from and need to check if these will be used towards repaying the 11.4m Corporate Borrowing. If the intention is to use the remaining developer contributions this way, there is a risk of not being able to pay back the Corporate Borrowing. Page 11 of 42

12 The A29 Realignment Feasibility Study provides the cost estimate 35.6m for the scheme using approximate quantities but the provenance of the rates used to produce this estimate is not clear. The base date for the cost estimate is Q A number of exclusions are noted and an optimism bias has been built in at 55% for m. Signature: Alex Hall (Senior Finance Officer) Date: 21/06/ Legal Implications Comments In this section of the Business Case the procurement and contract aspects of the project are considered. At present the project is at an early stage and it will be some time before the capital works procurements begin. Some of the contracts involved at the early stages of the project will be for consultancy services which will be revenue funded. Regardless of the subject matter of and the funding for the contract the following general principles will apply to all contracts. Q1 Is there likely to be a transfer of an undertaking (TUPE) as a result of entering into the works contract? TUPE DOES NOT APPLY TO WORKS CONTRACTS AND AT PRESENT IT SEEMS UNLIKELY THAT IT WILL APPLY TO ANY SERVICE CONTRACTS. Q2 Will staff pensions issues arise? NOT IF TUPE DOES NOT APPLY. Q3 What is the appropriate procurement route? OPEN, OR RESTRICTED, OR CALL OFF FROM A FRAMEWORK AGREEMENT. Q4 Do the Public Contract Regulations (EU Regulations) apply to the procurement of the works contract? THE VALUE OF THE MAIN CONSTRUCTION WORKS CONTRACT (AS SHOWN IN THE TABLE AT SECTION OF THIS BUSINESS CASE) IS WELL IN EXCESS OF THE WORKS THRESHOLD ( 4,104,394) FOR THE PURPOSE OF THE PUBLIC CONTRACTS REGULATIONS 2015 THEREFORE THE FULL REGIME OF THE REGULATIONS WILL APPLY. SMALLER WORKS CONTRACTS MAY FALL BELOW THRESHOLD VALUE BUT MIGHT HAVE TO BE INCLUDED IN AN OJEU PROCESS ACCORDING TO HOW THE PROJECT IS STRUCTURED. Q5 SOPC compliance? THE PROCUREMENT WILL BE UNDERTAKEN IN ACCORDANCE WITH THE COUNCIL S STANDING ORDERS ON PROCURMENT AND CONTRACTS 2016 INSOFAR AS THEY APPLY IN ALL CASES. ONCE VALUES EXCEED THE RELEVANT EU THRESHOLD THE PUBLIC PROCUREMENT REGULATIONS WILL BE APPLIED. Q6 Member decision required? YES AS THE VALUE OF THE PROJECT IS ABOVE THE KEY DECISION THRESHOLD OF 500K. SUBSEQUENT REPORTS MAY BE NEEDED FOR INDIVIDUAL PARTS OF THE PROJECT. Q7 Are there any State aid implications? NO, THERE SHOULD BE NO SUBSIDY INVOLVED. Q8 Will any anti-competitive activity be involved? NOT ON THE COUNCIL S PART. Q9 Does the Council have the statutory powers to undertake the project and the procurements involved? YES. Q10 The Public Services (Social Value) Act 2012 implications? TO BE CONSIDERED IN EACH MEMBER REPORT. Q11 Equality Act 2010 implications? TO BE CONSIDERED IN EACH MEMBER REPORT David Rowlands, Legal Services, 27 February 2017 Page 12 of 42

13 PART B: DETAILED CASE 2.0 STRATEGIC CASE [The purpose of this section is to explain and revisit how the scope of the proposed project or scheme fits with existing business strategies and provides a compelling case for change, in terms of existing and future operational and investment needs of the organisation]. In June 2014, the A29 Realignment was identified as a priority for investment in the County Council s Strategic Transport Investment Programme. This followed the completion of two feasibility studies, commissioned by Arun District Council, to identify improvements that would enable strategic development to come forward as part of the Arun Local Plan. The scheme is identified in the Coast to Capital Strategic Economic Plan as it supports the objectives to create new jobs and deliver new homes in the Coast to Capital area. The A29 Realignment scheme has been identified in the Arun Local Plan to provide access to land for strategic housing development in the Barnham, Eastergate, Westergate area and also to mitigate the severe impacts of development on the transport network. The scheme will also improve access between the A27 and Bognor Regis and help to facilitate regeneration of the town and further development of the strategic employment area known as Enterprise Bognor Regis. The primary purpose of the new road alignment is to enable development by providing access to land and highway infrastructure needed to mitigate the severe impacts of planned strategic development in the area. The new road will also alleviate problems of traffic congestion along the existing A29, notably at the Woodgate level crossing which causes delays on a key access route to Bognor Regis. The scheme will support delivery of strategic developments identified in the Arun Local Plan including; 2,720 new homes and 4,160 new jobs and 30ha of employment land as part of the regeneration of Bognor Regis. It will achieve this by: providing additional highway capacity to accommodate traffic growth associated with new development; providing access to land for strategic development at Barnham, Eastergate, Westergate; improving connectivity to/from Bognor Regis to support regeneration of the town; and improving access for businesses to customer and labour markets through a reduction in traffic delays, improving business productivity and supporting business growth. The scheme has been allocated 13m of Local Growth Funding, in-principle which can only be accessed through preparation of a Transport Business Case and acceptance by Coast to Capital Local Enterprise Partnership. Revenue investment of 500,000 is required to develop a new transport model and to prepare a Transport Business Case for the scheme. By providing information about the design, cost and performance of the scheme, the Transport Business Case will also inform ongoing pre-application discussions (including negotiations over developer contributions) with developers of strategic residential and commercial sites in the Barnham, Eastergate, Westergate and Bognor Regis areas. 2.1 Organisational overview [Please provide an updated overview of the organisation(s) making the case for investment in the scheme, with particular reference to purpose, structure, and operational environment]. West Sussex County Council, as Local Highway Authority, will lead the development of the scheme and preparation of the Transport Business Case. This role includes leading consultation with the community on options and the design of the scheme; securing Local Growth Funding to deliver the scheme; project managing delivery of the scheme and effective risk management as part of the Capital Programme. Page 13 of 42

14 Also as Local Highway Authority, the County Council will provide highways advice to Arun District Council on the impacts of planned development and the need for mitigation and/or contributions to make the development acceptable in planning terms. Arun District Council, as Local Planning Authority, will prepare the Arun Local Plan to provide planning policies which facilitate the delivery of the various strategic developments associated with the scheme. The District Council will also take a leading role in the delivery of strategic housing and employment developments, by coordinating the delivery of developments and other supporting infrastructure by liaising with the various infrastructure providers. In relation to the A29 Realignment, this includes taking a leading role in securing and distributing developer contributions needed to deliver the scheme. Developers for the various strategic housing and employment sites will be responsible for bringing forward development on the associated development sites which is key to delivering the main benefits of the scheme. 2.2 Business strategies [Please reference the business strategy for the organisation and any related national, regional or local strategies]. The West Sussex Transport Plan (WSTP) identifies a number of key transport issues for Arun District including issues associated with road access to Bognor Regis. The implementation plan of the WSTP sets out aims for Arun DC and states that opportunities should be sought to improve the access along the A29, including the potential to bridge the railway level crossing at Woodgate and to liaise with the rail industry to investigate options to reduce delays at the crossing. In June 2014, the A29 Realignment was identified as a priority for investment in the County Council s Strategic Transport Investment Programme. The scheme and associated strategic residential and commercial developments are specifically identified in the Arun Local Plan Publication Version (October 2014) which has been prepared by Arun District Council and is currently being examined by a Government-appointed Planning Inspector. Although the examination is currently on hold while the District Council undertakes further technical work and prepare modifications, these modifications are likely to include proposals to allocate additional sites for residential development which are likely to strengthen the strategic case for the A29 Realignment scheme. The A29 Realignment scheme is specifically identified in the Coast to Capital Strategic Economic Plan as the scheme supports its objectives to create new jobs and deliver new homes in the Coast to Capital area. In the Coast to Capital Growth Deal, 13m has been allocated towards the scheme, subject to confirmation of value for money and deliverability in a Transport Business Case. 2.3 Other organisational strategies [Please reference any other related organisational strategies, as appropriate]. The 3 villages (Barnham, Eastergate and Westergate) have been identified as a priority in the Arun Place Plan. The A29 Realignment scheme is critical to delivering the District Council s ambitions for development in this area. 2.4 Investment objectives [List the investment objectives here. These should be SMART]. The investment objectives of the scheme are: Page 14 of 42

15 To secure release of 13m of Local Growth Funding to invest in transport infrastructure improvements by March 2018; To help secure additional private sector investment of approximately 22.1m in the scheme through developer contributions by 2031; To help secure additional private sector investment in local infrastructure improvements associated with planned development up to 2031 that will have wider community benefits by securing delivery of the A29 Realignment which is a critical infrastructure improvement; and To contribute to growth in economic output through raising business productivity and facilitating delivery of new homes and employment floorspace by Existing arrangements [The section describes the existing arrangements with regard to the investment the status quo. This should include existing costs]. Location The A29 together with the A259 form the two main highway routes into and out of Bognor Regis, with the A29 providing a north south connection between Bognor Regis and the A27. Between its junction with A27 and Bognor Regis, the A29 joins the small settlements of Fontwell, Eastergate, Westergate, Nyton, Woodgate, Lidsey and Shripney. Current features The existing A29 north of Shripney is a single carriageway route which has various speed limits along is length, ranging from 60mph at Fontwell to 30mph in Woodgate, Westergate and Eastergate. There are also 40mph and 50mph speed limits on parts of the route reflecting the inconsistent nature of the road geometry, curvature, streetscape and the accident history. Page 15 of 42

16 The alignment of the existing route includes several severe bends which have historically been a source of concern from a road safety perspective. There are a range of different junctions and direct accesses along this stretch of the existing A29 which contribute to the inconsistent nature of the route. The West Coastway railway line bisects the A29 with a controlled level crossing located in Woodgate which is a significant source of local congestion. Purpose / function Although not forming part of the County Strategic Road Network, the A29 south of its junction with A27 at Fontwell is an important access route to Bognor Regis which, along with A259 provides access between Bognor Regis and the trunk road network. Traffic flows Current (2012 AM peak) traffic flows vary along the route from 716 (two way) close to the junction with A27 at Fontwell, to 1571 (two way) in Westergate 2 and there are junctions which are congested at certain times of day including: A29/A27 Fontwell Avenue Junction A29/B2233 War Memorial Junction Given the current traffic congestion that occurs across the local highway network it is recognised that in future, due to the impact of planned development in the area, if no improvements are delivered there will be significant traffic delays. These delays will be particularly evident at locations such as the A27/A29 Fontwell Avenue, the A29/B2233 War Memorial Junction, through Westergate Village and at the Woodgate railway level crossing. 2.6 Business needs [This section provides a detailed account of the problems, difficulties and service gaps associated with the existing arrangements in relation to future needs]. Arun District Council has proposed the allocation of land for strategic development in the Barnham, Eastergate and Westergate area in the Arun Local Plan. Once the Plan is adopted, it is expected that the area will be developed over the plan period to 2031 resulting in a need to cater for additional development-related trips on the local highway network. The Arun Strategic Transport Study is part of the evidence base for the Arun Local Plan and it identifies that without improvement, the A29 will experience congestion in the future as a result of background traffic growth and development-related trips which could be severe. Failing to invest in improvements will result in delays at pinchpoints on the highway network which typically occur at junctions. Over time, failing to cater for background traffic growth and development-related trips will have a negative effect on business productivity; act as a disincentive to businesses who are considering locating in Bognor Regis; and be a constraint to future growth beyond current plans. Therefore, there is a need to develop an A29 Realignment scheme that is based on the previous feasibility studies which will provide access to land for strategic development and be sufficient to cater for forecast background traffic growth and development-related trips. The previous feasibility studies have identified a long list of options which have resulted in the inclusion of an indicative alignment in the Arun Local Plan. Although it is anticipated that this 2 A29 Realignment Feasibility Study July 2014: Transport Assessment Page 16 of 42

17 indicative alignment will be the focus for further work, before this takes place, there is a need to understand key stakeholders views on this proposed alignment. 2.7 Scope and key service requirements [This section describes the business scope and key service requirements for the project in relation to the above business needs]. In order to develop options for the A29 Realignment scheme that will provide access to land for strategic development and cater for forecast background traffic growth and developmentrelated trips, the key service requirements are: Project management and governance Development of a comprehensive project plan, building on work already undertaken by Arun District Council to explore the feasibility of the A29 Realignment scheme Development of a comprehensive project risk register that is suitable for the current stage of the project and capable of effectively managing project delivery risks in line with the rest of the Capital Programme Develop project-specific governance and reporting arrangements which integrate with governance arrangements for the Capital Programme and support effective management of the project Scheme design Development of options, including reasonable alternatives, based on the indicative alignment identified in the Arun Local Plan Development of options for additional design features not previously identified in feasibility studies such as sustainable transport improvements, drainage and environmental mitigation measures Development of preliminary designs suitable for scheme appraisal, consultation and engagement Public and stakeholder engagement Undertake stakeholder identification/mapping and make arrangements for engagement/consultation for the duration of the project Review the results of previous consultation and engagement by Arun District Council to inform the identification of a short list of options Early engagement with key stakeholders to establish the degree of support for the indicative alignment to inform the identification of a short list of options Public consultation on options to inform the selection of a preferred option Transport model Development of an up to date transport model (based on Highways England s Chichester Area Transport Model or a suitable alternative) that is compliant with latest DfT guidance on transport scheme appraisal (i.e. webtag) and based on recent traffic data covering AM, PM and interpeak periods Transport Business Case and funding Preparation of a Transport Business Case that is compliant with latest DfT guidance on scheme appraisal (i.e. webtag) confirming deliverability and value for money of the scheme including an assessment of the wider economic impacts Preparation of an Environmental Impact Assessment which assesses the key environmental impacts of the scheme (e.g. landscape/visual, ecology, surface water), Page 17 of 42

18 allowing impacts to be minimised and environmental mitigation measures to be incorporated into the scheme design Submission of a Transport Business Case and all relevant technical evidence to enable Coast to Capital LEP to award Local Growth Funding and enter into a funding agreement with the County Council Provision of technical information about scheme design, costs and performance to inform pre-application discussions with development of strategic development sites 2.8 Main benefits [This section describes the main benefits and dis-benefits associated with the implementation of the scope in relation to business needs]. The following benefits are associated with delivery of the A29 Realignment scheme: Wider economic benefits Delivery of the Coast to Capital Strategic Economic Plan which aims to create new jobs and facilitate delivery of new homes across the Coast to Capital area; Delivery of the Arun Local Plan by enabling delivery of 2,720 new homes and 4,160 new jobs and 30ha of employment land by 2031; Regeneration of Bognor Regis by increasing business productivity and attracting additional investment into the town; Transport benefits Improved connectivity between Bognor Regis and labour and customer markets; Improved journey times and journey time reliability on the A29 between its junction with A27 at Fontwell and Bognor Regis by reducing congestion and providing an alternative to the current A29 which is impeded by the Woodgate level crossing; Improved road safety; Enhanced sustainable transport infrastructure; Environmental benefits Avoidance of any adverse environmental impacts, where possible, through the design of the scheme; Provision of mitigation measures to minimise unavoidable environmental impacts of the scheme; and Through a robust approach to environmental appraisal, in line with all relevant local, national and international legislation, ensure that any protected species are protected. 2.9 Main risks [List the main risks, together with their mitigating action]. Table Main risks identified and mitigation Risk Mitigation Responsibility Strategic development at Barnham, Eastergate, Westergate is delayed and/or does not come forward Liaison with developers as the scheme is developed through provision of pre-application advice Explore potential for planning performance agreement with ADC and developers WSCC Strategic Planning Financial case is dependent on Explore potential funding WSCC Strategic Page 18 of 42

19 contributions from strategic development at Barnham, Eastergate, Westergate opportunities such as Government grants or forward funding of developer contributions Planning Potential for scheme costs to increase from the existing estimate, which is the result of a Feasibility Study commissioned by Arun District Council Avoid scope creep Market testing of cost estimates at key stages through early contractor involvement WSCC Project Manager Scheme may not meet DfT (and LEP) criteria on value for money and deliverability Undertake early model runs once modelling tools are available to gauge whether the economic benefits are likely to meet minimum criteria Identify options for value engineering / phasing as part of Transport Business Case development If necessary, redesign the scheme to meet DfT (and LEP) criteria Maintain awareness of changes to WebTAG and potential impacts on the Transport Business Case WSCC Project Manager Scheme may not be publically acceptable Engage with local members and stakeholders on a regular basis through a liaison group Undertake community consultation on options WSCC Project Manager Investment objectives not delivered Liaison with Arun District Council and developers to support delivery of associated developments WSCC Economic Development Planning risks may increase if Arun Local Plan is found unsound Support the examination of the Arun Local Plan through involvement in preparation of the evidence base and attendance at relevant hearing sessions WSCC Strategic Planning Scheme may be delayed and miss key funding opportunities including, for example, timetable for accessing Local Growth Funding Early investment in transport modelling tools and development of the Transport Business Case Liaison with Coast to Capital LEP to ensure that this risk is appropriately managed Robust approach to project planning and management of risks including early involvement of key consultants / contractors and development of a project risk register that identifies potential impacts and severity WSCC Project Manager 2.10 Constraints [List the constraints the project is subject to]. Page 19 of 42

20 The scheme will be subject to the following constraints: Procurements must comply with WSCC Standing Orders; Scheme design must facilitate delivery of the proposed Barnham Eastergate Westergate Strategic Development; Conditions/restrictions on use of Local Growth Funding, including use of the funding by end of 20/21; and Transport Business Case must be prepared in line with current guidance on transport scheme appraisal (i.e. webtag) and also meet the requirements of the Coast to Capital LEP Assurance Framework Dependencies [List the dependencies that will be carefully monitored and managed]. Table Dependencies and mitigation Dependency How is this being managed? Responsibility Strategic development at Barnham, Eastergate, Westergate Working closely with Arun District Council and the developers Consider alternative financing options as part of Transport Business Case development WSCC Strategic Planning WSCC Project Manager Local Growth Funding Provide regular (as required) progress reports to Coast to Capital LEP Involve Coast to Capital LEP in developing the scope of work for the Transport Business Case to ensure outputs will achieve all relevant assurance requirements WSCC Project Manager 3.0 ECONOMIC CASE [This section looks at the options that have been considered. At Proposal Stage this will be high level; at SOC stage this will include appraisal of the long-list options and identification of the short-list options with indicative costs; at OBC stage this will include appraisal of the short-list options and identification of the preferred option; at FBC stage this will include appraisal and selection of recommended supplier] 3.1 Critical success factors [The critical success factors (CSFs) are the attributes essential to the successful delivery of the scheme, against which the available options are assessed. Alongside the assessment against CSFs is the assessment of how well the options meet the scheme s objectives and benefits criteria. More information is available within the Exploring the Way Forward guidance [link]]. Table Key Critical Success Factors Key CSF s Attributes to be assessed Page 20 of 42

21 Strategic Fit and Business Needs The investment objectives of the scheme are: To secure release of 13m of Local Growth Funding to invest in transport infrastructure improvements by March 2018; To help secure additional private sector investment of approximately 22.1m in the scheme through developer contributions by 2031; To help secure additional private sector investment in local infrastructure improvements associated with planned development up to 2031 that will have wider community benefits by securing delivery of the A29 Realignment which is a critical infrastructure improvement; and To contribute to growth in economic output through raising business productivity and facilitating delivery of new homes and employment floorspace by Potential Value for Money Potential achievability Supply side capacity and capability A scheme appraisal in line with DfT (WebTAG) guidance is required In order to demonstrate good value for money, a Benefit to Cost Ratio (BCR) >2:1 is required Wider economic impacts including those from new development to be assessed as part of scheme appraisal Use of third party land (i.e. outside the highway boundary) Outcomes of public consultation Deliverability of the scheme programme Level of interest from framework consultants in scheme delivery Time taken for procurement of consultants/contractors Potential affordability The scheme must be eligible for use of Local Growth Funding (i.e. capital) The scheme must be deliverable within the 35.6m scheme budget unless additional funding can be identified The scheme must use Local Growth Funding by end of 20/ Long-listed options [This is the list of options that have been considered and appraised against the objectives, benefits and critical success factors. From this list you should identify the short list of options that will undergo economic analysis to identify the preferred option. More information is available within the Exploring the Way Forward guidance [link]]. A29 Woodgate Study (May 2012) In 2012, Parsons Brinkerhoff were appointed by the County Council on behalf of Arun District Council to undertake a feasibility study into bypassing the level crossing on the A29 at Woodgate. The A29 Woodgate Study considered four local route options as shown in Figure below. Two of these of routes emerged as potential options to consider, these being route option A (a western alignment) and option D (an eastern alignment). Figure 3.2.1: Options identified in the A29 Woodgate Study (2012) Page 21 of 42

22 The evidence base developed from the A29 Woodgate Study was subsequently used to inform Arun District Council s draft Local Plan, with route option D to the east of Westergate included within the draft Plan. The draft Plan, stated that; Studies have also been carried out to investigate route options and costs for the A29 realignment which would result in significant improvements to North-South connectivity within the district. The indicated route of the A29 realignment is shown on the Proposals Map. Further technical work is required to determine the line of the route and how it would connect to the A27 to the north and the Bognor Regis Relief Road to the south. A29 Realignment Viability Study (April 2013) In April 2013, MVA Consultancy (now SYSTRA Ltd) were appointed by Arun District Council to undertake an A29 Realignment Viability Study. The key driver of the Study was to identify a preferred route alignment for the A29 Realignment which bypasses the railway crossing at Woodgate and ties in appropriately with the existing highway. Page 22 of 42

23 The A29 Realignment Viability Study identified a number of potential route alignments options which could extend from the routes A and D (both routes previously identified as part of the A29 Woodgate Study), connecting them back into the existing highway network. These initial alignment options are shown in Figure and were based on: Five extensions north from Route A; Four extensions north from Route D; Two extensions south from Route A, one of which has a further option to extend the alignment to provide a direct access to the Bognor Regis Relief Road to the east of the existing A29; and Two extensions south from Route D, one of which has a further option to extend the alignment to provide a direct access to the Bognor Regis Relief Road to the west of the existing A29. The A29 Realignment Viability Study used a two stage evaluation process to assess the performance of the options and refine the long list of options. Figure 3.2.2: Options identified in the A29 Realignment Viability Study (2013) Source: A29 Realignment Viability Study (April 2013) Page 23 of 42

24 The initial high level assessment was then carried out for each alignment option which ranked them on an evaluation criteria consisting of: Environmental Impact; Deliverability (in engineering terms); Traffic Impacts; Road Safety Impacts; and Scheme Costs. Table 3.2.1: First Stage Evaluation Summary Table (Northern Extensions to Route A) Source: A29 Realignment Viability Study (April 2013) Table 3.2.2: First Stage Evaluation Summary Table (Northern Extensions to Route D) Source: A29 Realignment Viability Study (April 2013) Table 3.2.3: First Stage Evaluation Summary Table (Southern Extensions to Route A) Page 24 of 42

25 Source: A29 Realignment Viability Study (April 2013) Table 3.2.4: First Stage Evaluation Summary Table (Southern Extensions to Route D) Source: A29 Realignment Viability Study (April 2013) As a result of the first stage evaluation, the following alignment extensions were identified to be taken forward to the second stage of assessment. These alignment options were renamed as follows to take into account their links with the routes A and D identified within the previous A29 Woodgate Study. The location of these route alignments are also shown in Figure Northern extension to Route A = A1 (also referred to as part of the A29 western bypass option); Southern extension to Route A = A11 (also referred to as part of the A29 western bypass option); Northern extension to Route D = D8 (also referred to as part of the A29 eastern bypass option); and Southern extension to Route D = D12 (also referred to as part of the A29 eastern bypass option). Figure 3.2.3: Second stage options from A29 Realignment Viability Study (2013) Page 25 of 42

26 Source: A29 Realignment Viability Study (April 2013) Table 3.2.5: Option Assessment Summary A29 Western Bypass Scenario (Routes A1, A and A11) A29 Eastern Bypass Scenario (Routes D8, D and D12) Traffic impact Road safety impact Environmental impact Provides good benefits with significant reductions in traffic forecast across some parts of the local highway network. Should provide reductions in PIAs as a result of significant traffic reductions across parts of the local highway network. Northern Extension (Option A1) Flood plain constraints need to be considered within design. Provides very good benefits with significant reductions in traffic forecast across the local network, including junctions within Westergate. Should provide reductions in PIAs as a result of more significant traffic reductions across the local network. Northern Extension (Option D8) Least environmental constraints although greatest local impacts on built Page 26 of 42

27 Viability Central Section (Option A) Minimal environmental issues but floodplain constraints. (*) Southern Extension (Option A11) Flood plain constraints and impact on West Sussex Internal Drainage District to be considered within design. Potential to secure significant funding from the private sector. However, likely to be a funding gap which will need to be filled by the public sector. environment with property demolitions likely. Central Section (Option D) Minimal environmental issues but floodplain constraints. (*) Southern Extension (Option D12) Floodplain constraints, impact on West Sussex Internal Drainage District and crossing of Lidsey Rife river need to be considered within design. Given the location of proposed development, the eastern route alignment is more likely to secure greater developer Section 106 contributions. Cost 46.3 million 50.8 million Following a second stage evaluation, the A29 eastern bypass scenario (alignments D8, D and D12) emerged as the preferred route alignment of the A29 Realignment Viability Study. A29 Realignment Feasibility Study (July 2014) In July 2014, SYSTRA Ltd in association with Campbell Reith Hill Ltd and Temple Group were commissioned by Arun District Council to prepare the A29 Realignment Feasibility Study to establish the feasibility, viability and deliverability for a proposed A29 realignment highway scheme. The A29 Realignment Feasibility Study was prepared following recognition that the alignment (D8, D and D12) identified in the A29 Realignment Viability Study (April 2013) would have required demolition of a number of properties and the associated higher costs with its delivery. Specifically the purpose of the A29 Realignment Feasibility Study was to: Establish the feasibility, viability and deliverability of route option D as a standalone option; Establish the feasibility, viability and deliverability of a Northern Tie-in Route D6 (which ties in the northern end of the new route D alignment and back into the existing A29); and Establish the feasibility, viability and deliverability of a Southern Tie-in Route D12 (which ties in the southern end of the new route D alignment and back into the existing A29). Figure 3.2.4: Option D6, D, D12 from A29 Realignment Feasibility Study Page 27 of 42

28 Source: A29 Realignment Feasibility Study (July 2014) The A29 Realignment Feasibility Study sought to assess; a) whether the proposed alignment is feasible in engineering terms; b) whether the proposed alignment is likely to provide transport benefits; c) the extent of environmental impacts; and d) whether the proposed alignment is financially viable. Feasibility of highway design The A29 Realignment Feasibility Study identified a horizontal and vertical alignment for the proposed scheme. In engineering terms, the most significant issues for the route are the requirement for a bridge to cross the existing railway line and some sections of the road pass through areas of floodplain. Constructing a bridge over the railway line brings certain challenges, in particular the potential impact on rail services, but subject to appropriate consultation and agreement with Network Rail, this issue can be overcome. The actual extent of the bridge structure will also need to be identified through more detailed design work. Page 28 of 42

29 The A29 Realignment Feasibility Study concluded that the risk of the road flooding can be mitigated by raising the level of the carriageway where the route passes through floodplain areas. Whilst the extent of this increase in level would be subject to more detailed design work, its construction is considered to be feasible from an engineering perspective. The A29 Realignment Feasibility Study also identified indicative junction layouts which tie the new alignment back into the existing highway network. While further work is required to develop these junction designs to a more detailed design stage, the junctions are considered to be feasible from an engineering perspective. Transport impacts The transport assessment carried out for the A29 Realignment Feasibility Study drew a number of conclusions about how traffic patterns in the area are likely to be affected by the scheme and the relative benefits of constructing option D as a standalone scheme compared to a scheme which additionally includes northern (option D6) and southern extensions (option D12). Constructing option D as a standalone scheme should improve journey time reliability as it would enable vehicles to avoid the Woodgate railway line level crossing but these traffic benefits are significantly reduced if the Woodgate level crossing remains open to traffic. Option D only provides limited traffic benefits on the local roads surrounding the War Memorial junction as vehicles on the new route would still negotiate the junction to access the A27 and parts of Westergate, Eastergate and Woodgate Villages. Option D would also not resolve the right turn problem from Barnham Road to Fontwell Avenue where due to the existing layout of the junction, HGVs struggle to negotiate the turn. Furthermore, if option D with the Woodgate Railway level crossing closed to traffic is taken forward, this would result in an increase in traffic along Barnham Road which is likely to create problems for pedestrians, given the relatively narrow footway that currently exists along the road. Extending the alignment to additionally include a northern and southern tie-in would provide additional transport benefits by transferring more traffic away from the existing A29 and surrounding villages. Furthermore, the northern extension should significantly reduce traffic approaching the A29/B2233 War Memorial junction, from the B2233 Barnham Road, as it enables vehicles travelling between Fontwell Avenue and Barnham Road to avoid the junction. It would also resolve the existing problem HGVs currently have in negotiating right turn movements into Fontwell Avenue from Barnham Road. The War Memorial junction is seen as a critical pinch point on the existing highway network, with limited scope for capacity improvements due to the current land constraints surrounding the junction. As such the junction is likely to be a significant constraint on the level of future development. The northern extension (D6) would provide a practical transport solution to mitigate the future congestion and delays at the junction. The southern tie-in to the existing A29 is proposed to be either north (option D) or south (option D with southern extension D12) of the Lidsey Bends. The Lidsey Bends is a section along the existing A29 through Lidsey where the alignment requires drivers to negotiate a series of significant bends in the road. Option D12 will therefore provide additional road safety benefits over option D as this option enables vehicles to bypass this part of the existing A29. Extent of environmental impacts An environmental appraisal was carried out as part of the A29 Realignment Feasibility Study. This appraisal concluded that the proposed route alignments should not have any significant adverse impacts with regard to ecology, landscape and visual impacts or flooding. It is very likely that, given the landscape/visual and ecology issues, an Environmental Impact Assessment (EIA) and Environmental Statement would be required to support a future Page 29 of 42

30 planning application. detailed modelling. Flood risk issues at the southern end are also likely to require more Viability The A29 Realignment Feasibility Study identified a preliminary cost estimate for the scheme which includes the northern and southern extension (options D6, D, D12) of around 36 million. It was acknowledged that due to the scale and complexity of the project, multiple funding streams are likely to be required to deliver the scheme. 3.3 Short-listed options [This section details the short list options that were identified from the long list. These options are subject to appraisal to identify the preferred option. At Strategic Outline Case we expect estimates +/- 50%; At Outline Business Case we expect estimates +/- 15%; At Full Business Case we expect to see contract prices]. At this stage in the design process, no public consultation on options has been undertaken and the County Council have not yet indicated a preference for any of the options identified in previous feasibility studies. Therefore, it is recommended that early engagement takes place with key stakeholders at an early stage define the shortlisted options. *Section 3.4 to 3.9 are completed as part of the OBC and revisited as part of the FBC* 3.4 Economic appraisals [This section looks at the expected costs and cash benefits for each of the short listed options. It includes calculating risks that can be measured financially and optimism bias. More information is available within the Determining Potential Value for Money guidance [link]]. To forecast traffic flows and trip patterns across the network for each scenario highlighted above, information was extracted from the West Sussex County Traffic Model (WSCTM) SATURN Highway Assignment Model. The WSCTM has been validated to a base year of 2009 for the AM peak period 8:00-9:00. The A29 Realignment Feasibility Study (July 2014) compared the existing conditions on the road network with the following 2031 future year scenarios: 2031 Future Scenario 1 - Route option D as a standalone scheme and the existing A29 Woodgate railway crossing remaining open to general traffic; 2031 Future Scenario 2 - Route option D as a standalone scheme and the existing A29 Woodgate railway crossing closed to general traffic; 2031 Future Scenario 3 - Route option D together with northern tie in (route 6) and southern tie in (route 12) with the existing A29 Woodgate railway crossing remaining open to general traffic; and 2031 Future Scenario 4 - Route option D together with northern tie in (route 6) and southern tie in (route 12) with the existing A29 Woodgate railway crossing closed to general traffic. At this stage in the design process, a full economic appraisal of the shortlisted options has not been carried out. However, table shows that the shortlisted options have the potential to attract a significant proportion of traffic from the existing A29 which suggests they are likely to offer good value for money through a full economic appraisal. The attractiveness of the route is greatest with the addition of northern and southern tie-ins and closure of the Woodgate level crossing. Page 30 of 42

31 Since the various feasibility studies were undertaken, additional development has been permitted in the area and Arun District Council have carried out further technical work to support the examination of the Arun Local Plan which is likely to result in additional sites being allocated for development in the District. As an economic appraisal has not previously been carried out and addition development is committed or planned in the area, it is recommended that at an early stage in developing the Transport Business Case, an initial economic appraisal is undertaken. This will be based on updated assumptions and inform the identification of the shortlisted options which will then be subject to further appraisal as the Transport Business Case is developed. Table AM Peak Traffic Flows on existing A29 and New A29 Route Alignment Source: A29 Realignment Feasibility Study (July 2014) 3.5 Non-financial benefits appraisal [This section looks at non-cash releasing benefits, their weighting, score and impact on options ranking. More information is available within the Determining Potential Value for Money guidance [link]] Commentary of results 3.6 Non-financial risk appraisal [This section looks at the impact of non-financial risks - their impact, probability and score - on options ranking. More information is available within the Determining Potential Value for Money guidance [link]] Commentary of results 3.7 The preferred option [This section looks at the impact of non-financial risks - their impact, probability and score - on options ranking. More information is available within the Determining Potential Value for Money guidance [link]]. Page 31 of 42