Purpose

To seek approval for proposals to amend budget and spend profile, including contractual arrangements, to ensure the continued timely delivery of the SDGZ project.

Decision

RESOLVED to:

1) Approve activities to increase the South Derbyshire Growth Zone  project budget, bring forward necessary work and expenditure to ensure the continued timely delivery capital project and specifically to:

a) Note the increase in Scheme costs from £77.040m to £89.100m based on the programme and sequencing of early works and activity to mitigate associated risks;

b) Approve the submission of a Full Business Case for National Highways Growth and Housing Accelerator funding to help to address the identified funding gap;

c) Authorise the Executive Director – Place to enter into collaboration agreements or equivalent with local authority partners and other key stakeholders to support partnership working and the appropriate sharing of financial risks;

d) Delegate authority to the Executive Director - Place, in liaison with the Cabinet Member - Highways, to bring forward the 2028-29 East Midlands Combined County Authority (EMCCA) funding allocation for the Scheme for earlier use if required, subject to the submission of a Full Business Case and agreement with EMCCA;

e) Delegate authority to the Executive Director - Place, in liaison with the Cabinet Member - Highways to approve evidence-led levels of additional spend of allocated funding at risk to ensure the scheme remains deliverable within the required timeframe and ensure Levelling Up Funding can be defrayed by March 2029 to reflect the grant funding requirements; and

f) Delegate authority to the Executive Director - Place, in liaison with the Cabinet Member - Highways to move necessary expenditure from Stage 2 of the construction contract into Stage 1 (Stage 1 – Pre-Construction & Stage 2 – Construction), using an appropriate proportion of any available funding in advance of receipt of the LUF grant, and extend the end date of Stage 1 up to 31 March 2028 as required.