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ITEM EX22

A422 BANBURY, HENNEF WAY DUALLING

1. This report seeks the approval of the Executive to enter into a Works Agreement with Railtrack relating to the new bridge required for the construction of Hennef Way Dualling. The Works Agreement exposes the County Council to future liabilities relating to upgrading of the railway line, but Railtrack insists on a Works Agreement before it will agree to sell the land it owns that is needed for the construction of the road. Agreement has been reached on the acquisition of all the remaining land and this is the final step required before the contract can be awarded.

   Background

2. The full dualling of Hennef Way from M40 to A423 Southam Road has been an approved Major Capital Programme Scheme since the mid 90’s. In June 2001 the former Environmental Committee approved a Project Appraisal No H159/1. This gave spending approvals of £5.776M at May 2001 prices. The scheme is included in the 2001/02 capital programme. Every effort has been made to achieve the earliest possible start date and tenders were invited in November 2001. Tenders have now been received and the lowest price bid can be funded from the allocated budget.

Railtrack Negotiations

3. All land required for the scheme has been secured with the exception of land in the ownership of Railtrack plc, which is necessary for the new railway bridge construction. Railtrack have tied the release of this land to the signing of a "works agreement"
4. In order to carry out works on or over a railway, Railtrack require Outside Parties to enter into a works agreement. Railtrack maintain that their document is a nationally agreed one and we have some evidence to substantiate this.
5. The most financially onerous clauses in the Agreement are reproduced in Annex 1 . This gives Railtrack the right to require the Council to alter the bridge at any time in the future at the Council’s cost to suit Railtrack’s development of the railway line.
6. Railtrack are not prepared to negotiate on the clause and the original 1983 Agreement, relating to the present bridge on Hennef Way, also reproduced in Annex 1 includes effectively the same liability. In order to mitigate this liability, officers have sought Railtrack’s agreement to the provision of a clause requiring Railtrack to give reasonable notice to the Council to enable the Council to make a bid for Government funding through the Local Transport Plan. The outcome of this initiative will be reported orally at the meeting.

Director’s Comments

7. The need for "works agreements" with Railtrack is common practice and it is understandable that Railtrack seeks to protect its future interests in the event that a major upgrading of the line is proposed. The County Council would seek similar agreements if a new railway were being proposed, crossing a road that may need to be improved.
8. In practice it would be several years before any major rail upgrading could come forward and there would be the opportunity of bidding for additional Local Transport Plan funding to cover the cost of any future liabilities. I would expect the Department of Transport, Local Government & the Regions to be sympathetic to this type of case, especially if flagged well in advance. It is common practice for the Strategic Rail Authority to publish their programme of line upgrades well in advance.
9. There is no real alternative to accepting Railtrack’s requirements if the dualling of Hennef way is to go ahead and I recommend that the County Council enter into a "works agreement" that includes the clauses 24.1, 24.2 and 24.3 as set out in Annex 1. The Strategic Rail Authority recently published plans for a gauge upgrade from Southampton to Birmingham by 2005. There are four structures which are affected by this upgrade. Current indications are that the bridge at Hennef Way is not one of them. We are seeking confirmation of this and the latest position will be reported orally at the meeting.

Financial and Staff Implications

10. Using the lowest tender bid and the other costs, which are now known, a check has been made against the Project Appraisal budget figure and the projected scheme cost can be met from the scheme budget. No further spending authority is therefore required at this time. However the potential liability, if Railtrack invokes clauses 24.1,2&3 of the "works agreement" remains unpredictable.

RECOMMENDATIONS

11. The Executive is RECOMMENDED to authorise the completion of a "Works Agreement" with Railtrack plc that includes clauses 24.1, 24.2 and 24.3 as set out in Annex 1, subsequent to written confirmation that the Hennef Way bridge is not affected by the upgrading proposals by Strategic Rail Authority.

DAVID YOUNG
Director of Environmental Services

Background papers: Nil

Contact Officer: Colin Baird Tel: Oxford 815536

March 2002

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