Question to the Department for Transport:

To ask His Majesty's Government, following the publication on 19 February of Current PFI and PF2 projects as at 31 March 2024, why the A69 Carlisle to Newcastle project (project ID 245) incurred payments in 2023–24 of £14 million on a capital value of £9 million, and what proportion of those payments was for (1) lifecycle maintenance, and (2) capital repayment.

The A69 Carlise to Newcastle Project is a 30-year PFI project expiring in March 2026. At financial close in 1996, the project comprised of the design and build of Haltwhistle Bypass, a 2-mile section of the A69, and the maintenance and renewal of the 52-mile route between Carlisle and Newcastle for the 30-year contract period. The capital value in the 19 February published data refers to the cost of the design and construction of the Haltwhistle bypass.

The unitary payments to the PFI company (Road Link (A69) Limited) are an all-in payment that covers the overall services provided. This effectively includes amounts related to the original design and construction of the Bypass, as well as both the maintenance (routine and lifecycle) and operation of the longer stretch of road. However, the payment is not structured such that there are defined parts for each of the different elements within the services provided.

Road Link (A69) Limited will continue to incur maintenance, renewal and operating costs on the 52-mile route until the expiry next year. They will also incur costs related to their handback obligations to National Highways, which include extensive, independent surveys to confirm asset condition, and any costs to bring it up to the required condition, before the road is handed back to National Highways when the PFI expires.