A Lincolnshire County Council proposal to act as guarantor to underwrite the £34 million shortfall in funding for Lincoln’s Eastern Bypass has been approved.
Originally it was believed that the Eastern Bypass would fail to receive the government funding needed to complete the route.
It’s thought the bypass extension will cost just under £98 million to complete.
It has passed the initial ‘expression of interest’ stage at the beginning of the year, and will now be submitted to the Department for Transport in early December for a £50 million ‘best and final bid’.
Executive Member for Highways and Transportation, Councillor William Webb, said: “This really does take us one step closer towards making the Lincoln Eastern Bypass a reality for residents.
“The time is now if we wish to pursue this aim, and acting as a guarantor to underwrite the shortfall of just under £34 million required strengthens our funding bid considerably.
“The money will be recouped through development in the surrounding area over the next 20 years.”
The new leg of the bypass would run from the A158 Wragby Road roundabout to the A15 Sleaford Road. It will take two years to build, and could start in 2014.
However, the new funding amount also means the Eastern Bypass will be just a single carriageway rather than a dual carriageway, as initially planed.
Councillor Webb added: “The Lincoln Eastern Bypass would have a profound effect on the movement of traffic around the city and help bring economic prosperity for years to come.
“The benefit cost analysis is considerable at seven to one, meaning that for every pound spent on its construction, seven would be gained in overall economic prosperity.”
The authority has so far contributed £14 million of the overall costs. The shortfall will be found from developer contributions from a Local Development Framework.