Gospel Oak to Barking Extension 1

Meeting: 
MQT on 2014-03-19
Session date: 
March 19, 2014
Reference: 
2014/1479
Question By: 
John Biggs
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

What is the estimated cost of the extension to Barking Riverside, are innovative funding mechanisms being sought and what is its benefit-cost ratio?

Answer

Answer for Gospel Oak to Barking Extension 1

Answer for Gospel Oak to Barking Extension 1

Answered By: 
The Mayor

The estimated cost of the extension to Barking Riverside is £163 million in 2013 prices or £190 million in nominal prices, including risk and contingency allowance.

The proposed funding arrangement is a 50:50 share between the GLA and TfL (contributing £95 million) and the Government (contributing £95 million). The GLA contribution will include borrowing against future land value uplift, with some contribution from the Borough. TfL will reprioritise £30 million from its existing budget and make a direct contribution of £8 million.

The extension is the key to unlocking the delivery of 11,000 new homes, five new schools and substantial commercial town centre uses in Barking Riverside. Based on a standard transport appraisal methodology, the extension has a benefit-cost ratio of 1.2:1. However this does not capture the wider economic benefits including an increase in land values of around £250 million by 2031; the creation of 6,000 jobs of which around 2,500 would be permanent jobs; savings of £13 million per year in terms of reduced unemployment; and an increase in local retail spend of around £47 million per year by 2031.