Engineering consultancy, Egis UK has welcomed changes in the Department for Transport’s (DfT) approach to project appraisal outlined by the former transport secretary, Louise Haigh, as she set out the government’s vision to create a new Integrated National Transport Strategy.
However, it has cautioned that the approach to project appraisal must be replicated across national and local government to be effective in practice.
The government said the strategy will set out a locally led “people-first” approach inspired by Dijon’s model of integrated transport, which Egis delivered through comprehensive design and delivery services that prioritised seamless connectivity and sustainable urban development. It added that the DfT’s appraisal system would shift to ensure that projects not only deliver good value for money, but also deliver the right outcomes, with a focus on boosting jobs, access to education and health, especially in less affluent areas.
Egis UK has recently highlighted the difficulties posed by government funding criteria for the delivery of projects that maximise social benefits.
James Hill, Urban Transport Director at Egis UK, said: “The government is right to want to address the piecemeal approach to transport infrastructure that has prevailed in the UK for a generation. The promise of a 10-year strategy will be welcomed by the industry as it enables longer-term investment decisions and may make oversees investment in UK transport infrastructure more appealing.
“We are glad too that the government has pledged to address the insufficient focus on outcomes in the DfT’s current assessment of projects. However, while this change is certainly welcome, the challenges extend beyond the DfT, with the Treasury’s Green Book posing a major challenge in delivering the right infrastructure in the right places.”
Egis UK has previously argued that the Green Book, which is used to assess the cost-benefit ratios of major infrastructure projects, has disadvantaged projects that deliver some of the biggest real-world benefits, such as light rail, because it overstates the cost of the disruption involved in construction and understates the benefits.
“It is challenging to obtain funding for light rail projects because the Green Book does not take full account of the benefits projects will deliver, but magnifies the disbenefits. For example, road closures and the installation of new junctions count contribute to the value of disbenefit for every journey affected, while the wider public benefits of light rail are difficult to justify within the confines of the framework. This must be at the top of the new secretary of state’s agenda,” James added.
“Similarly, while the commitment to local leadership is welcome in ensuring that transport projects aim to achieve the outcomes desired by local people, control of local authorities can change frequently, with some having elections most years. It will be vital to ensure this does not lead to short-termism with projects becoming stop-start as administrations change.
“Nevertheless, the overall approach promises to overcome tendencies towards short-term expediency and fragmentation in the delivery of transport projects, ultimately to the benefit of people and businesses.”
The government has now launched a call for ideas, which will run until January and be used to inform the drafting of the new Integrated Transport Strategy.
PIC-EGIS
