New legislation introduced to Parliament could pave the way for private capital to help fund major strategic road projects, with the Lower Thames Crossing expected to be among the first schemes to use the proposed financing model.
The Government has introduced the Highways (Financing) Bill to Parliament, establishing the legislative framework needed to bring private investment into the delivery of major road infrastructure in England.
Transport Secretary Heidi Alexander introduced the Bill in the House of Commons on 10 September. It received its First Reading on the same day, with MPs currently due to consider the legislation at Second Reading on 15 October.
Central to the proposals is the introduction of a Regulated Asset Base (RAB) approach, which the Government has identified as its preferred financing model for the Lower Thames Crossing.
The model is intended to attract private capital into infrastructure delivery while placing the operation and financing arrangements within a regulated framework. The Government says this can reduce the immediate financial burden on taxpayers while maintaining oversight of charges and performance.
Under the legislation, licences could be issued allowing tolls to be charged in return for securing works on trunk roads in England. The Bill also contains provisions covering the responsibilities of licence holders, enforcement and the collection of tolls.
The Office of Rail and Road (ORR) is expected to take on the economic regulator role for the Lower Thames Crossing once the necessary legislation is enacted.
National Highways described the introduction of the Bill as another step forward for the Lower Thames Crossing alongside work already progressing on the project.
The planned crossing will create a new road connection between Kent and Essex, including a tunnel beneath the River Thames. National Highways says the scheme would almost double road capacity across the Thames east of London and is intended to relieve pressure on the existing Dartford Crossing.
The Government has previously said that the majority of construction costs are expected to be financed through the RAB model on the basis of revenues generated through user charges. Details of the eventual charging regime have yet to be finalised.
National Highways said it will work with Government and the ORR as the legislation progresses through Parliament.