August 5, 2011 2.30 pm This story is over 150 months old

Lincoln Eastern Bypass funding bid at risk

Bypass woes: The Lincoln Eastern bypass is in danger of not receiving government funds.

There is a “very high probability” that the much-needed Lincoln Eastern Bypass funding bid will fail, according to a Lincolnshire County Council report.

The report warns that the final bid to the Department for Transport will not gain funding if the council does not underwrite £34 million of third-party funding.

The final bid will be submitted in September.

The Lincoln Eastern Bypass has a long history and was programmed to receive funding for the delivery of a dual carriageway scheme.

The change of government and the Spending Review meant the County Council would need to critically reduce the project’s demand on the public purse.

This turned plans for the Eastern Bypass from a double to a single carriageway scheme, with a total cost of £97 million (down from £112 million).

The County Council is now seeking from DfT £50 million to support the construction of the single carriageway scheme.

The council will contribute with £14 million towards the total cost, and is relying heavily on third-party developer contributions worth £34 million.

The developer money will only be received by the council over the life of the Local Development Framework period and not before the start of construction.

Due to this, the County Council will have to underwrite this amount until it is received from the developers.

However, without this guarantee there is a higher potential to lose the DfT grant, the report found.

The report recommends the Lincolnshire County Council Executive, which will meet on August 15, to underwrite the £34 million.