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Ministers are set to give progress for a £ 10 billion road tunnel between Kent and Essex called the Lower Tame Crossing after years of delay, with the private sector expected to finance most of the project.
The Transport Department will approve on Tuesday an order of consent of development for the long -awaited project, according to United Kingdom Government officials.
The 14 -mile road and tunnel will be the first new river to cross east of London in 60 years.
The government is seeking positive announcements to make a prior to the Rachel Reeves Spring statement Wednesday, which is expected to be gloomy, with growth forecasts reduces and deep cuts of departments.
One official said the project would be a “main strategic road” for drivers, goods and logistics, improving the connection between Southern England and Midlands and unlocking regional economic growth.
“This demonstrates the commitment of this government to give the country’s life infrastructure that the country needs,” they said.
The scheme has become a symbol of Britain’s sclerotic planning system, with more than £ 1.2 billion spent on the project despite the fact that construction has not yet begun.
Money has been spent on planning, consultations, traffic modeling, environmental estimates, legal and advisory tariffs and land purchases.
The project planning document goes to 359.070 pages, equivalent to nearly 300 times the full works of William Shakespeare.
The cost of the tunnel project has already increased by between 5.3bn £ and 6.8bn £ when it first agreed in 2017 in a current forecast of about 10bn £.
Construction is expected to begin in 2026 or early 2027 ahead of a planned opening by 2032.
The government has not yet to decide which method of private finances to use in the project, with a decision later expected this year from the treasure.
A proposal to have a model “Base of Regulated Assets” (RAB) – in which private investors will collect income from the way to pay their investments in project life – is favored by treasure, according to people with knowledge of discussions.
This option would cost the treasure £ 200m more in front costs than if the government paid the scheme directly, according to a recent national highway document.
The model, which has been used in Tideway’s new sewers in London, would require nearly 2 billion £ taxpayers funding to attract 6.3bn £ private investment, receiving total project costs at at least 9.4bn £, show figures.
National highways say it is likely to have a “market interest in the regulated option of private unit distribution”, citing projects that use the same structure including the Sizewell C nuclear factory.
