Contact: Steve Nicholson, ext 6346 email: [email protected]

1. Summary

1.1 The following decisions are sought:

(i) That Cabinet supports the submission to the Department for Transport based on the framework in this report.

(ii) That the funding risk be reduced by inviting Best and Final Offers that enable commercial bids, which are likely to be off-balance sheet, to be considered alongside value for money alternatives that may not qualify for PFI Credit funding, which would be funded by the Department for Transport in a traditional way via grant or supported borrowing.

(iii) That, in the event that Ministers are only prepared to grant funding approval on a provisional basis, pending the confirmation of a compliant market response, to be prepared to proceed with inviting Best and Final Offers, subject to funding being confirmed later by the Department for Transport, but before the selection of a Preferred Bidder, and before committing any land acquisition or advanced works costs.

2. Reason

2.1 The proposals support many of the Corporate Aims and Objectives but would further in particular the Corporate Strategy Aim 3, achieving economic prosperity, and Aim 2, stewardship of the environment. The South Hampshire Rapid Transit 1 project, designed to provide a light rail service connecting Fareham, Gosport and Portsmouth, remains the highest priority within the County Council's Local Transport Plan and has regional significance, being a key scheme in the regional transport strategy.

3. Other Options Considered and Rejected

3.1 Not to pursue the project.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: ..................................... Date: ...................................

Councillor T K Thornber

375/SN Decn