A benefit cost ratio (BCR) of monetised impacts was determined for each of the two widening schemes (between Junctions 16 to 23, and Junctions 27 to 30) included within the M25 design, build, finance and operate contract.
The following table summarises the BCR figures at each ministerial approval stage. The method for calculating the BCR figures changed for scheme appraisals carried out since 2005-06 and the targeted programme of improvements figures are therefore not directly comparable with the later approvals.
Junction 16 to 23 Junction 27 to 30 Ministerial approval at TPI entry in 2004 5.5 2.4 Ministerial approval to increased costs for widening—27 July 2007 4.2 2.4 Ministerial approval to maximum expected cost for M25 DBFO contract—1 April 2009 3.5 2.0
[holding answer 12 June 2009]: The approved estimate for widening the M25 between Junctions 16 and 23, and between Junctions 27 and 30 was £0.90 billion at the time these projects entered the Targeted Programme of Improvements in 2004.
The capital cost of these widening schemes was re-estimated and approved at £1.28 billion in July 2007. At this stage it had been agreed that the widening of the M25 between Junctions 16-23 and Junctions 27-30 schemes would be procured through the M25 design, build, finance and operate (DBFO) contract. The estimates did not include the cost of financing via the private finance initiative route.
The contract was awarded to Connect Plus on 20 May 2009 with total capital costs for the two widening sections of £1.02 billion. This represents the fixed price from Connect Plus for development and construction of the two sections being widened but excludes the cost of financing.