The decision to begin the tendering process was approved by the scheme’s sponsor, the Tyne and Wear Passenger Transport Authority (TWPTA) at its meeting on November 24, subject to further discussion with the short-listed bidders. The bidders have now indicated their readiness to proceed. This marks a major step forward in the project.

The TWPTA’s decision was taken in the knowledge that the legal challenge to the Transport Secretary’s go-ahead is still pending.

New Tyne Crossing Project Director Paul Fenwick said: “The project team has taken legal advice on the risk of pressing ahead with the procurement process whilst the legal challenge to the Secretary of State’s approval is on-going.

“We have also sounded out the three short-listed bidders for their views.

“After careful consideration we have taken the view that even if the High Court upholds the challenge, it will delay rather than stop the scheme.

“We have taken into account the comments of the Inspector in his report to the Secretary of State following the Public Inquiry that ‘to avoid the potential for employment and economic stagnation, I consider that the only realistic option is for the New Tyne Crossing to proceed.’

“The Secretary of State was happy to confirm the Order for the New Tyne Crossing to go-ahead and we are committed, as an Authority, to doing the best for economic prospects for the people of Tyne and Wear.

“On that basis there is no reason to delay the issuing of the formal Invitation to Tender.
 
TWPTA deputy chairman Councillor Tom Hanson said: “We believe it is in the best interests of local people and the local economy that the New Tyne Crossing is open to traffic as soon as possible.”

The Invitation to Tender will be issued on February 8, so bidders will be required to submit their initial tenders by August 7.

It is expected the procurement process will take up to 18 months before a Concessionaire is appointed.

The new tunnel will then take around 42 months to construct. It will open to traffic in late 2010 or early 2011.

Ends

Issued on behalf of the Tyne and Wear Passenger Transport Authority by Bradley O’Mahoney Public Relations. Media contacts Richard Simpson on 07821 537106 or Felicity Amer on 0191 281 8833.

Notes to editors:

1	On July 21 2005, the Secretary of State for Transport approved the application by the Tyne and Wear Transport Authority (TWPTA) to go ahead with the planning and construction of the New Tyne Crossing.
2	The decision was subject to any Legal Challenges in the subsequent six weeks.
3	A Legal Challenge was made in August 30 2005 by Brian Atkinson, a resident of South Tyneside.
4	Mr Atkinson was a representative of Friends of the Earth at the Public Inquiry in 2003, but has made his Legal Challenge as an individual. Friends of the Earth are not making a Legal Challenge.
5	The Legal Challenge is against the decision of the Secretary of State. This means that the Secretary of State for Transport will be the defendant when the case comes to the High Court. The Tyne and Wear Passenger Transport Authority, is cited as an interested party and will be involved in that capacity to support the defence.
6	The basis of the Legal Challenge is that the Secretary of State has ‘erred in law’ in reaching his decision. The TWPTA is not allowed, for legal reasons, to comment further until the case has been heard.
7	No date has yet been set for the High Court hearing.
8	TWPTA is confident that the Challenge will be successfully defended and that the scheme will proceed.
9	The New Tyne Crossing was originally a Public Private Partnership with a Concessionaire appointed to finance, design and construct the new tunnel and to operate all the tunnels under the Tyne. On October 21 2005 the TWPTA agreed to consider the possibility of using prudential borrowing to cover half the cost of the scheme. This would enable tolls to be kept lower than would otherwise be the case.
10	The New Tyne Crossing will be an immersed tube tunnel between East Howdon (North Tyneside) and Jarrow (South Tyneside). It will complete the dualling of the A19 which runs from south of Cramlington, Northumberland, to North Yorkshire.
11	The three consortia short-listed to bid for the scheme are (only principle partners are listed): Bouygues, comprising Bouygues Travaux Publics SA, HBOS and HSBC. Connect North East, comprising Balfour Beatty Capital Projects Ltd and Volker Stein Construction Europe bv. T4, comprisingEdmund Nuttall Ltd, Mowlem plc and Vinci SA.
12	A fourth consortium, Tyneside Link, comprising John Laing plc, HOCHTIEF, Laing O'Rourke and Intertoll Ltd, withdrew from the bidding process in December 2005.