HEREFORDSHIRE Council has given one of its key partners the go ahead to make Hereford’s city link road happen.

A decision signed off at cabinet level authorises Balfour Beatty Living Places (BBLP) as acting on the council’s behalf in securing a main contractor for the scheme.

BBLP is already delivering site clearance and advance works for the road through the public realm contract it has with the council.

Now, BBLP will undertake a competitive tendering process to find the contractor that will get the road built.

A final decision on the contract award will be made once the outcome of the tendering process is known.

The road is a priority for the council as an access to planned development between Commercial Road and Widemarsh Street.

It is pitched as a new east / west  cross-city connection to take traffic off the inner ring road - enabling Newmarket and Blueschool Streets to be upgraded for easier pedestrian access and further investment.

In June 2012, the then Cabinet authorised acquisitions through negotiations with affected landowners along the intended route.

 Cabinet also backed the use of compulsory purchase powers if agreements were not reached.

Just under a year later, cabinet authorised the use of compulsory purchase for acquisition and the making of relevant highways orders.

A number of objections were made to compulsory purchase which were considered at a public inquiry in May last year.

By September, compulsory purchase had been confirmed.

Land for the scheme has now been secured with construction set to start dependant on the re-location of the Royal Mail depot off Station Approach.

The council’s public realm contract will be used by BBLP to act on behalf of the council to undertake a procurement process for the main road building contract.

This procurement can run parallel with the advance works and is intended to have the road ready by 2017.

BACKGROUND – Business re-location

The scheme has required a number of businesses to relocate from within the area.

At present there are five businesses that still need to relocate.

Each of these businesses have been in  negotiations with the council prior to acquisition and/or compulsory purchase.

The council says terms have been  agreed with one of the businesses for relocation and are ongoing with other businesses.

Statutory compensation is being offered to those businesses affected. There are no residential properties which are being wholly acquired.

BACKGROUND – Financial implications

With an overall approved budget of £27 million, the scheme is included in the council’s capital programme and its spend profile has been agreed with the Local Enterprise Partnership (LEP).

Of that £27 million, the estimated budget for the link road works is £14 million, with the rest being estimated land costs.

External funding of £16 million is included within the £27 million budget, and has been allocated from Growth Deal funding - £6.2 million in 2015/16 and £9.8 million in  2016/17 – subject to final approval by LEP management.

Approval of the business case by the LEPs independent technical advisor is expected this month - the LEP has signed off the business case in principle subject to final draft review.

The remainder of the scheme cost will be funded by borrowing.

An estimated cost of the advance works to be delivered through the BBLP contract is estimated at £4.8 million - £1.5 million of demolition and culvert works and £3.3 million of Royal Mail accommodation works.

These costs are contained within the scheme budget.

The cost of the procurement process is estimated at £60,000 and are contained within the scheme budget.