asked Her Majesty's Government:

Further to the Written Answer by Lord Jones of Birmingham on 12 December 2007 (WA 64), in respect of the proposed new port at Great Yarmouth (a) what is the total estimated capital cost of the project; (b) what were the reasons that caused the East of England Development Agency (EEDA), having first required revenue commitments from a ferry operator, subsequently to withdraw this condition; and (c) what are the expected sources and amounts of revenue for the project that caused EEDA to decide that revenue from a ferry operator was not required to service £17.9 million of public investment, in addition to the private investment. [HL1114]

The total estimated capital cost of the project for the construction of the outer harbour at Great Yarmouth as envisaged in the project appraisal carried out by EEDA in 2004, which includes the part-publicly funded maritime access works, is £54 million, as set out in my reply of 12 December. This does not take account of any further private development of the port by the private developer.

The requirement for revenue commitments from a ferry operator at the outset of the project was imposed as a means of helping ensure viability of the project. This requirement was withdrawn by the RDA following responses to the procurement exercise for the outer harbour project. The requirement was waived on the basis that it was not judged commercially realistic in today's market to expect that a ferry company would commit to revenue guarantees at such an early stage, before construction of the outer harbour had begun. At the same time, the RDA judged that the proposal submitted in response to the procurement exercise by the developer who was eventually selected presented a sound and viable development without revenue commitments at the outset from a ferry operator.

The successful developer's proposal was based on enabling larger vessels for existing trades to call at Great Yarmouth and attracting a range of new trades, with port facilities and the commercial focus evolving over time in response to market trends. In addition to attracting ferry services, the proposal identified the following potential sources of revenue; expanding support for the oil and gas sector; expanding the scope and scale for importing aggregates; extending the support for existing trades such as forest products, fertilisers and agri-bulk; providing port and support facilities for the wind farm; catering for oil and gas de/recommissioning demand ; attracting containerised short sea and feeder trades; attracting car imports; attracting new technology projects. Release of information on the amounts of revenue expected would prejudice the commercial interests of the port developer.