Improving transport to transform lives page 14-15

32 Pages·2017·5.69 MB·English

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INTERNATIONAL RAIL ISSUE 29 | March/April 2018
We unpick Donald Going underground
Trump’s £200bn – an inside look
infrastructure plan at Crossrail
page 8-9 page 16-18
INTERVIEW
We speak to Stantec
UK’s managing
director Cath Schefer
page 24-25
Produced for the industry by the Association for Consultancy and Engineering
Improving
transport to
transform lives
page 14-15
PLUS: l Carillion l Road charging l Public procurement l Labour and infrastructure l Smart transport
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MESSAGE FROM
THE EDITOR
The collapse of Carillion has dominated much of Infrastructure Intelligence’s online
coverage over the past couple of months and it is inevitable therefore that our
latest print edition and my editor’s comment also follow suit by looking at the
fall out from the demise of what was a construction household name.
As Nelson Ogunshakin correctly highlights in his excellent article on page 28,
Carillion’s fall should be seen as an opportunity for wholesale reform of business
practices in the construction industry.
We have been here before of course and to address some of the pressing
structural problems facing the industry and to avoid repeating the mistakes of
the past, we will need to have honest, open and difficult conversations on issues
such as procurement, supply chains, profit margins and value for money. Clients
and government will need to be more enlightened and informed. Above all, they
will need to look beyond the short-termism of the immediate balance sheet and
take the longer view.
Politicians, some of whom have taken the opportunity to bash the industry in
the wake of Carillion’s collapse, will also need to think carefully about how
public sector projects are planned, procured and delivered. They need to engage
with the industry at all levels, listen to what people tell them and act on it as a
Produced for the industry by the Association
for Consultancy and Engineering matter of urgency.
Infrastructure Intelligence There must be no more Carillions. We cannot be here again.
12 Caxton St, London SW1H 0QL
T: 020 7222 6557
Andy Walker,
www.infrastructure-intelligence.com
editor, Infrastructure Intelligence
Editor: Andy Walker
07791 997602
ii29-mar-apr2018.qxp_print 02/03/2018 09:09 Page 3
News round-up
Northern Powerhouse Rail and HS2
must start together, say campaigners
collection of northern mayors, MPs,
and business leaders have come
Atogether calling for a major
overhaul of the northern rail network.
A campaign launched by the Northern
Powerhouse Partnership (NPP) is calling on
the government to deliver Northern
Powerhouse Rail at the same time as HS2
Phase 2B, which is expected to open in
2032/33.
Campaigners argue that improving
transport links between big cities such as
Manchester, Liverpool and Bradford would
mean the north-south divide does not
widen in the coming years.
NPP vice-chair Lord Jim O'Neill said: transform the economy of the UK, never thousands of new jobs and increased
“Getting Northern Powerhouse Rail mind just the north.” overseas investment could be just two of
delivered to the recommendations of “Indeed, by doing it, the financial the benefits created by cutting journey
Transport for the North is crucial for the investment justification for central times to cities and towns. To make this
success of the Northern Powerhouse. government would vastly exceed the usual happen, the NPP is requesting a redesign
Without connecting as quickly and cautious value for money criteria, and be for Manchester Piccadilly (pictured above)
efficiently as possible the many closely- one of the most exciting things for post to create an underground station and a
located towns and cities of the Northern Brexit Britain, notably for an area that has further NPR station in Liverpool, alongside
Powerhouse, it will not be able to create many disillusioned voters.” HS2, which would help create 20,000 new
the agglomeration benefits that would Decision-makers in the north claim that jobs and generate £703m for the economy.
Mayor reveals 25-year Croydon to get
upgrade after
London transport plans
he mayor of London has revealed his funding pledge
revised transport strategy which
Tcommits to ploughing ahead with roydon is set to benefit from an
Crossrail 2 and tube line extensions while expanded train station, extra
reaffirming his commitment for 80% of Ctracks and flyover junctions after
journeys to be made by walking, cycling the government committed funding to
and public transport by 2041. the Brighton main line upgrade project.
Included in the plans for the next 25 The funding boost for the Brighton
years is a West London Orbital rail line that main line upgrade programme should
would connect Hounslow with Cricklewood mean major improvements in
and Hendon, with Sadiq Khan claiming it boroughs of Merton and Sutton to develop punctuality between London, Gatwick
could potentially support the delivery of the proposed Sutton Tram extension and an Airport and the Sussex coast with the
another 20,000 homes. He has also pledged increased focus on the opportunities from potential for more frequent services in
“record-breaking investment” across the new technology. the longer term.
entire tube network which would finance Chief executive of the Association for Known as the Croydon Area
the extension of both the Northern and Consultancy and Engineering, Nelson Remodelling Scheme, it would see
Bakerloo lines. Ogunshakin, commented: “Successful construction of a series of new grade-
The mayor published a draft of his infrastructure demands careful long-term separated junctions north of East
strategy for consultation last June and the planning, so Sadiq Khan should be Croydon station to remove the ‘Croydon
revised document has now been presented commended for London’s responsible bottleneck’ where several routes to and
to the London Assembly for consideration transport strategy which, for possibly the from central London converge.
before final publication in the coming first time, looks beyond near-term mayoral As part of the plans, East Croydon
weeks. politics to offer a bold vision for the future station would also be expanded and
A total of 6,600 responses were received of transport in the capital. We would urge revamped with the number of platforms
on last year’s consultation and there has the new metro mayors, and groups like increasing from six to eight. Travellers
been a number of amendments following Transport for the North and Transport for would also benefit from new concourse
the feedback received. These include a Wales, to mirror the London mayor’s long- areas with better access to the platforms
commitment to work with the London term approach to infrastructure planning.” and surrounding areas.
March/April 2018 | Infrastructure Intelligence 3
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January 2018 saw the end of one of the top three construction companies in the
UK, but how did Carillion end up going bust? Ryan Tute looks back at how the
construction giant reached the point of no return and what the future may hold.
Industry leaders call
for major change after
Carillion’s demise
revelations come out of the woodwork.
Questions are now being asked about how
long the collapse was in the making and
whether those at the top concealed the
extent of the problems Carillion was facing.
In the aftermath, it has become clear
that last July’s shock profit warning was
not the same surprise to those within the
company. An inquiry launched by two
government select committees brought
Philip Green, chairman of about a humbling day for former directors
Carillion, described the and chairmen as MPs scrutinised their
individual roles in the company’s demise.
collapse as “a very sad day”,
One of those called before the
a decision that came “with committees was former Carillion chief
the deepest regret”. executive Richard Howson who provided a
bleak picture of non-payments well before
July 2017. He revealed how the
last-ditch attempt to salvage the company, construction company had signed up to a
Green approached the government on 13 £200m World Cup construction deal with
January for £160m of funding over four Qatar that meant the company couldn't
months, but this was rejected. walk away even if money did not exchange
hands. Speaking to MPs, Howson said: “The
What led to the collapse? amount of energy and effort to make sure
The inquest into Carillion and the state of there was enough cashflow each month
the construction sector is firmly underway was extraordinary,” he added. “I felt like a
and continues to accelerate as more bailiff just to try and collect cash.”
4 Infrastructure Intelligence | March/April 2018
Carillion collapse
wo months on from the collapse of
one of the UK’s construction giants,
Tmore than half of Carillion’s
workforce remain in limbo as they await to
hear what their futures hold. The
implications are still being felt and are
likely to be for months as the firm’s supply
chain attempts to mitigate the impact. But
what lessons have been learnt and how
does the industry safeguard itself from a
repeat episode?
The date of 15 January 2018 will always
be remembered as a sorry day for the
industry as Carillion liquidated with
multimillion pound contracts unfinished,
£800m of liabilities and a pension deficit
estimated to be just short of £1bn. It’s
estimated the firm was the main
contractor on 57 construction projects
worth a total of £5.7bn on the day it fell.
Announcing the collapse, Philip Green,
chairman of Carillion, described it as “a
very sad day” and a decision that came
“with the deepest regret”. The trade union
representing many Carillion workers
reacted angrily with GMB’s national
secretary Rehana Azam saying the fact
such a massive government contractor like
Carillion had been allowed to go into
administration showed a “complete failure
of a system that has put our public services
in the grip of shady profit-making
contractors”.
The construction company’s liquidation
has impacted the lives of the 19,500-strong
workforce in the UK. The official receiver,
an office of the government’s Insolvency
Service, continues to try to find new
employers for the thousands who are
unsure on where their futures lie. Their
efforts have seen approximately 8,000 jobs
saved but sadly more than 1,000 have lost
their jobs.
Even though the firm was struggling to
cope with a gigantic debt deficit, bosses held
onto the slight hope of staying afloat right
up until the day before Carillion folded. In a
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MPs also heard from former chairman It’s estimated that about 30,000 SMEs Hospital, and the Midland Metropolitan
Green, who reiterated how he believed the have been and continue to be affected by Hospital in Birmingham. While work
company could have been saved and held the collapse. From cleaning, consulting, continues to be at a standstill, projections
out hope right until 14 January - the day building to landscaping, thousands were on costs and time spiral leading many to
before bosses announced liquidation. He subcontracted to carry out much of the wonder how much damage the delays will
outlined three reasons for collapse: high firm’s work. mean.
level of debt from 2013-16, a small number It’s become apparent the former giant
of contracts that went wrong and the was a notorious late payer, meaning many How do we avoid a repeat of Carillion?
inability to secure short-term funding last companies operating on tiny margins have Despite the unfortunate consequences
month. lost out on even more money owed with that comes with any firm liquidating,
Suspicions that directors knew it was in the loss of contracts that could have been Carillion’s demise has been described by
difficulty earlier than they admitted in pivotal in their long-term financial many as the wake-up call the industry and
public have now meant former shareholders planning. Court documents revealed last the government needed. The Association
like Kiltearn Partners have considered civil month that those companies are unlikely for Consultancy and Engineering chief
legal action with a view to recovering a to get anything back. This could force executive, Nelson Ogunshakin, believes
proportion of its clients’ “crystallised losses” bosses around the country to take the the collapse would have a number of
following its profits warning last summer. In regrettable measures of firing people, or “major ramifications” for the industry and
evidence released, two investment even folding their business entirely. that a complete rethink of how it operates
institutions said they believed managers had was needed.
been underplaying the deterioration in “In the long term, this is an awakening
Carillion’s finances before it announced an for major structural change in the
£845m write down of key contracts and construction industry,” said Ogunshakin.
issued a profit warning in July last year. “The challenges of low profitability and
A few of the major projects Carillion were negative cashflow experienced by the
responsible for have been consistently contracting sector confirm that the
highlighted as a big contributing factor in current procurement process is broken.
the eventual downfall. One of those being A new business model, coupled with client
the construction of the £450m Royal leadership, is urgently required to make
Liverpool Hospital. Problems encountered our industry fit-for-the-future and ensure
“A new business model,
again are thought to have been known long we won’t experience difficulties with other
before bosses made it public. Cracked coupled with client major players,” he said.
hospital beams at the hospital have plagued The Federation of Master Builders has
leadership, is urgently
the completion of the project and estimated claimed that relying on a handful of larger
to have set the company back to the tune of required to make our firms is too risky in today’s current
£20m. climate. Its chief executive Brian Berry
industry fit-for-the-future.”
said: “Carillion’s liquidation raises serious
But what does the future hold for the questions for the government, not least
industry and those connected to As for major projects where Carillion about its over-reliance on major
Carillion? was the main contractor, the work contractors. The government needs to
The latest rival to reveal it has suffered in continues to find a solution. So far, the open up public sector construction
the hands of the Carillion is Galliford Try. Insolvency Service has found some new contracts to small and micro firms by
Recently it openly called on shareholders contractors, or is paying for work to breaking larger contracts down into
for a cash injection of £150m after taking a continue as normal in vital public services smaller lots. That way, it can spread its risk
£25m hit on the cost of picking up such as school catering. But the future while also reaping the benefits that come
Carillion’s share of their Aberdeen bypass remains unclear on at least big hospital from procuring a greater proportion of its
joint venture. projects, the Royal Liverpool University work from a broad range of small
companies. Construction SMEs train two-
Carillion thirds of all apprentices and are a sure-fire
executives
way of spreading economic growth more
being
evenly throughout the UK.”
questioned
by MPs at The crisis has also gripped the political
parliament. arena with the government facing
increasing pressure to address the
systemic and damaging late-payment
culture within the sector. The end of
January saw an early day motion in
parliament tabled by Bury North MP James
Frith calling on the government to honour
all outstanding payments on public
contracts for work completed and to
enforce public sector 30-day payment
regulations. The motion epitomises the
view that many within the industry agree
with, namely that tighter controls and
consequences for those who fail to abide is
the way forward.
March/April 2018 | Infrastructure Intelligence 5
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The wonders of engineering are revealed in a new book by an inspirational engineer
who worked on The Shard. Andy Walker read the book in a day and was suitably impressed.
How engineers make
dreams a reality
nce in a while you read a book that Emily Warren Roebling
makes you think differently about was the first female
Othe world around you. BUILT: The field engineer and saw
Hidden Stories Behind Our Structures, is quite out the completion of
the Brooklyn Bridge.
simply a book about engineering and one
woman’s passion for construction that I
could not put down. So much so that I read
it in a single day.
Its author, structural engineer Roma
Agrawal, has written a book that is as
readable as it is fascinating. Even for
someone who regularly writes about
infrastructure, engineering and
construction, this book made me look
anew at the world and the built
environment that underpins it.
BUILT is Agrawal’s first ever book (hard
to believe given its lively and accessible
style) and she transports the reader on an
exciting and always interesting tour of
how engineering works and the forces at has evolved from the days of the mud hut being are inspiring and her descriptions
play that underpin – and in some cases to mega structures made of steel that of the far-sighted visionary geniuses who
undermine – structures and buildings. A touch the sky. She also describes in some down the years have made the seemingly
natural communicator, Agrawal won the detail the way that sewerage systems have impossible possible are equally jaw-
Consultant of the Future and Diamond evolved and her account of the trade in dropping. Agrawal clearly knows her
Award for Engineering Excellence in ACE’s human excrement in early 17th century subject inside out and wants the reader to
Engineering Excellence Awards in 2015 Japan is especially fascinating! feel her enthusiasm for engineering too.
and after reading this book I think the Through detailed archive images, Reading the book was a real eye
judges’ decision was a prescient one. photographs and her own hand-drawn opener and it made me think anew about
In BUILT, Agrawal charts her illustrations, Agrawal brings engineering more ‘technical’ subjects like physics and
inspirations and what drove her to to life. She rightly highlights the role that maths that as a writer I thought I’d left at
pursuing a career in engineering as well as women have played in engineering down the secondary school gates. Agrawal
telling us the stories behind some of the the years and devotes a whole chapter to makes engineering accessible and
world’s landmark buildings. Agrawal’s her engineering idol, Emily Warren exciting, highlighting how the engineer
infectious enthusiasm for engineering Roebling, without whose skills and makes the most extravagant of dreams a
shines through every page of this book, as expertise, the Brooklyn Bridge in reality. This book deserves the widest
does her respect for the natural New York would never have been possible audience,
environment and the many geniuses completed. Agrawal is a staunch especially amongst the
throughout the years that have shaped advocate of diversity and young.
a world we now take for granted. inclusion in engineering On a practical level,
The book’s fly sheet asks the and speaks widely on Agrawal also informs us why
reader to imagine a world the issue with some you should never ever take
where everything created by passion. on an engineer at Jenga,
engineers had disappeared. Her accounts of which is something I will
What would you see? The how some of the also remember after reading
answer of course is almost world’s iconic this fantastically interesting
nothing – no cars, no buildings and and inspiring book. I can’t
houses, no phones, bridges structures came into recommend BUILT too highly.
or roads, no tunnels either, or
skyscrapers. Agrawal Roma Agrawal (left). Her book BUILT – The Hidden Stories Behind Our
looks at how Structures is published by Bloomsbury and retails at £20 but can be
construction purchased for £12.99 from Amazon or £6.99 on Kindle.
6 Infrastructure Intelligence | March/April 2018
Book review
ii29-mar-apr2018.qxp_print 02/03/2018 09:09 Page 7
Transport
Changing social trends means that a new l Increase private investment in England’s
road network.
approach to road funding is needed, according Funding Roads for the Future was
developed with detailed input from ACE’s
to a new report from ACE. James Ketchell reports.
road sector interest group. Dave Beddell,
managing director strategic highways
(Europe) at AECOM and chair of the group
Road user charges said: “Such is the importance of the road
network to our national economic and
social wellbeing that we cannot allow the
way in which we fund its future
should be tailored development and operation to become
misaligned with emerging customer
needs.
“Alongside the increased levels of spend
in favour of drivers we have seen allocated to parts of the
network in recent years comes an equally
rivers should be charged for using “It’s vital that the government starts exciting opportunity for industry to work
the UK's road network based on these conversations with the public now, alongside government in order to create an
Dtheir individual circumstances and as to date there have been suspicions of investment framework that supports a
when they are using the roads, according road user pricing and fears that people will modern and sustainable road network.”
to a new report from the Association for be priced off the road. This doesn’t have to The launch of the report gained
Consultancy and Engineering (ACE). be the case and there is a great opportunity extensive media coverage. Speaking on
Funding Roads for the Future calls on the to develop a fairer-for-all road funding BBC Radio Four’s Today programme,
government to introduce dynamic road system which delivers the first-class road Ogunshakin said that increasing
user pricing which takes into account a network that this country needs long into devolution across the UK provided an
driver’s journey (motorways or country the future.” opportunity for a national debate on the
lanes), the time of day, congestion on the Some of the report’s other approach ACE is advocating and that local
network, and even their financial recommendations are to: councils would have a key role to play in
situation, such as whether they’re a l Develop a new overall National Roads new funding models.
student, pensioner, or unemployed. Strategy outlining a co-ordinated approach “With devolution empowering local
Currently, motorists pay fuel and beyond the national network, including authorities on ways to regenerate their
vehicle taxes and the funds raised are introducing a Local Roads Fund to local economies, it seems like an ideal time
invested in roads but ACE says that this amalgamate and ring-fence funding for to start a conversation on the future
model is failing in the face of new local roads; funding the road network,” Ogunshakin
technology and changing social trends, l Look at short-term reforms to widen said.
such as zero-emission vehicles, ride the scope of Vehicle Excise Duty to The report claims that congestion will
sharing, and increased urbanisation. ACE include zero emission vehicles, therefore be a major issue for England’s road
wants to see short-term reforms to the securing revenue for the National Roads network in the future. Given that the
existing road taxation system, pushing it Fund; government expects congestion to
towards the longer-term aim of l Reform the existing HGV increase 63% by 2030, ACE is calling for
dynamic road user pricing. road user levy, using it as a new options to be considered to ensure
Commenting on the report, pilot for the broader that England’s road network is fit-for-
ACE chief executive Nelson introduction of dynamic road purpose for the future with budgetary
Ogunshakin said: “Our report user-charging across the constraints. Promoting private investment
argues that in the years ahead network; in the road network and giving more tools
only a reformed funding regime l Establish a Local to local authorities for road funding are
based on dynamic road user Infrastructure Tariff two options the government must explore,
pricing will manage traffic flows allowing councils to develop the report says.
and deliver the significant a sustainable revenue
investment needed to keep the stream for local road James Ketchell is senior communications executive
country moving. infrastructure investment; at ACE.
March/April 2018 | Infrastructure Intelligence 7
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President Donald Trump
finally unveiled his plan to
reform and invest in US
infrastructure in February.
But will it bring the big lift
in delivery needed?
Jon Masters weighs
the odds.
Trump’s infrastructur
n paper Donald Trump’s new submitted by every state across 16 and expansion of the workforce.
infrastructure plan appears bold different categories. This has become an Echoing others including ASCE, the
Oand based on a lot of common often-quoted state-of-the-nation Chamber of Commerce has lobbied for
sense. Its central premise, for generating measurement, particularly for politicians an additional 25 cents on the national gas
the big uplift in dollars needed for the as they lobby for increased spending. The tax, which is the primary source of
United States’ transportation, water and 2017 Infrastructure Score Card gave an funding for the federal Highway Trust
energy networks, is pump-priming overall D+ ‘poor and at risk’ rating due to Fund and has stayed at 18.4 cents on
federal funds to attract state and private backlogs of maintenance. petrol and 24 cents on diesel since 1993.
sector investment. The amount promised In advance of Trump’s infrastructure The Highway Trust Fund has
is $200bn over ten years, with the aim of plan, ASCE and the US Chamber of diminished by about 40% as inflation has
this garnering a total of “at least” $1.5tr Commerce called for a strengthening of risen and receipts lowered due to greater
for the nation’s infrastructure. all existing federal infrastructure loan fuel efficiency and the rising popularity
The plan lacked impact, only because programmes, of which there are at least of hybrid and electric vehicles. The non-
its central idea was much consulted and 13, including the Highway Trust Fund and partisan Congressional Budget Office has
then the draft leaked in the run-up to similar for dams, waterways, harbours, estimated a further $121bn is needed
publication in February. This came after rail and drinking water. between 2021 and 2026 just to maintain
Trump’s business-friendly tax reforms The Chamber of Commerce made four current maintenance of the Interstate
and cuts elsewhere in the overall federal key recommendations for US Highway System.
budget for an administration focused on infrastructure. In addition to Speaking at its Infrastructure Summit
reducing the nation’s debt pile. strengthening and expanding loan in January, the chamber’s president and
US infrastructure has been funded by a programmes (to encourage public private CEO, Thomas Donohue, said: “By a 22-
general 80/20 split of federal to state partnership projects), it called for an point margin – 50 to 28 – voters support
spending. Trump wants to reverse that. increase to the federal fuel user fee – the implementing a federal fuel user fee,
His plan includes $100bn of facilitating national gas tax – plus streamlining of the provided the money will go toward
grants, which come with the caveat that permitting (planning consents) process modernising our infrastructure. And I am
they can only contribute only 20% of
project funding. There were few surprises
in the infrastructure plan. Now the to construction and
central questions are over whether it can lifecycle costs, evidence of
bring about the desired effect. efficient approaches to
procurement, delivery
The need and technology, plus
social and economic
Analysis by the American Society of Civil
returns. Incentive funding
Engineers (ASCE) in 2016, put the US cannot exceed 20% of the
infrastructure spending gap for 2016- total to be raised.
2025 at $1.4tr if funding continues at 2. Rural Infrastructure
current levels across all sectors, against a Programme: $50bn to be
total need of $3.3tr. According to ASCE’s The plan essentials distributed to states for
2016 Failure to Act report, the costs of not rural infrastructure
reversing the deficit will be a $4tr loss in 1. Infrastructure Corps of Engineers and projects based on a
GDP and 2.5 million jobs by 2025, with Incentives Programme: Environmental Protection formula of rural
every household losing $3,400 in annual $100bn to be Agency. State applicants population and lane miles
disposable income. administered by the US for funds will be scored on of roads.
The ASCE publishes score cards every Department of how much non-federal 3. Transformative
four years on the condition of US Transportation, Army funding they can commit Projects: A $20bn
infrastructure, gathered from scores
8 Infrastructure Intelligence | March/April 2018
US infrastructure
ii29-mar-apr2018.qxp_print 02/03/2018 09:09 Page 9
cture plan unpicked
of the burden for funding our states to invest in their own
infrastructure on commuters and cash- infrastructure priorities and significantly
strapped states”. The Senate minority investing in rural America, this proposal
leader Charles Schumer said the plan is welcome news for Indiana as we work
would place “unsustainable burdens on to ensure our state is equipped for the
local government and lead to Trump tolls jobs of today and tomorrow.”
all over the country”. Others urged the US lawmakers on
Republicans were understandably Capitol Hill to just get on with it. Over the
more supportive. A White House past decade US infrastructure has been
spokesman had described the plan as characterised by spending plans stymied
“the start of a negotiation – a bicameral, and stalled and existing bills extended
bipartisan negotiation – to find the best rather than new ones enacted. “The plan
solution for infrastructure in the US”; released is an important first step, but
pointing to the substantial barriers the Congress must also find a solution to
plan has to hurdle before a bill is passed. shore up federal transportation trust
Reports in the days after the plan was funds,” said AECOM’s chairman and CEO,
unveiled painted a picture of Democrats Mike Burke. “Inaction is not an option.
opposing on principle and some Congress should proceed with a sense of
Republicans being wary of the fact that it urgency to advance our national
still needs funding by pinching from economy and improve the standard of
other pots. living for all Americans through modern
Nonetheless, among those speaking in infrastructure,” said Burke.
favour was Indiana Republican senator The ASCE’s managing director of
Todd Young: “By streamlining onerous government relations and infrastructure
permitting regulations, empowering initiatives, Brian Pallasch, was
remarkably sanguine, given that hopes
for a significant federal spending
programme for airports; strengthening of transit (public commitment have been dashed. “The
supporting ‘bold, the RRIF fund for transport) funding; $200bn over ten years is not enough and
innovative and mainline rail and eliminating constraints on the big funding gap in the report card
transformative subsidising credit risk PPP transit schemes; won’t all come from the private sector,
infrastructure projects’. insurance premiums to greater allowance of but existing programmes that work well
Applicants will compete encourage local rail airport privatisation; stand to be strengthened and the
for funds for schemes that applications; expanding allowing federal funding
legislative process has started,” Pallasch
are commercially viable, WIFIA for water and for privately owned water
but too technical or risky brownfield clean-up; projects. said.
for attracting private extending tax exemption 6. Permitting reform: “Trump has even stated that he’ll
investment. regime of Private Activity proposing a new and support a gas tax rise, which no other US
4. Infrastructure Bonds for public-private faster regime with a president has been willing to do in 20
Financing: $20bn to finance projects. deadline of 21 months for years, so he’s showing a moderation of
bolster existing federal 5. Additional lead agencies’ courage at least and there are other
funding programmes; provisions: relaxing environmental review positives, such as plenty of big equity
including expanding TIFIA rules preventing tolling decisions; with greater investors waiting in the wings.
for transportation and on interstate highways; delegation of decisions to Meanwhile a lot of states are working on
broadening its application demanding value capture states and judicial reform stuff and finding their own way of raising
to ports, waterways and financing as a condition of permitting. funds and there’s no shortage of projects
that can use the money,” he said.
March/April 2018 | Infrastructure Intelligence 9
not surprised voters are willing to
contribute to this investment. Increasing
the fee by a total of 25 cents, indexed for
inflation and improving fuel economy,
would raise $394bn over the next 10
years.”
States add their own tax on top and
according to the Chamber, 39 of them
have increased levies on fuel since the
national rate was last increased. “Not a
single state lawmaker has lost their seat
for supporting a gas tax increase,”
Donohue said. Nationally, however, the
gas tax appears too hot an issue for
Congress. Trump has reportedly indicated
he would support such a rise, but it
wasn’t included in his December tax
reforms.
The reaction
Responses were predictably mixed in the
aftermath of publication, for an
infrastructure plan that New York
Democrat congressman Jerrold Nadler
described as a “scam that would put most
ii29-mar-apr2018.qxp_print 02/03/2018 09:09 Page 10
With Birmingham set to host the Commonwealth Ventham said. “Tackling areas like Perry
Barr is much-needed and attracting the
Games in 2022, Ryan Tute looks at what the games here means kickstarting a
longstanding aspiration to regenerate
event could mean for the region and looks back
that part of Birmingham. The date of
at Glasgow 2014 to see what legacy has been left. 2022 provides an unmissable deadline
that can help bypass planning processes
which are notoriously difficult to
navigate and usually overrun. Without
the prospect of the Commonwealth
Birmingham bids
Games then we would have not got the
same parties around the table and the co-
operation needed to deliver a project of
this size,” she said.
for Games legacy Birmingham will become the first
English city since Manchester in 2002 to
host the Commonwealth Games. But we
ith promises of multi-million only have to look back to 2014 to learn
pound investments, housing whether a fellow UK city has prospered
Wdevelopments, new transport from a successful games bid.
links and a boost to the economy, the Back in July 2014 as a fresh-faced
West Midlands could be set to reap the student, I was bringing the curtain down
benefits of a successful Commonwealth on my university experience in Glasgow. I
Games bid but can it generate more than remember walking down Byres Road in
just 11 days of sporting success? the west end of the city on one of the few
The decision to hand the prestigious sunny days to grace Scotland’s biggest
sporting event to the city of Birmingham city. The streets were buzzing with
in December was described by West excitement as the first Commonwealth
Midlands mayor Andy Street as a Games in the UK for over a decade takes
“fantastic Christmas present” but it place.
certainly isn’t one that comes free of The transformation of Glasgow’s east
charge. Questions over affordability “The Games really end is however where anyone can see the
continue to plague the city with opened up physical impact of the event. Central to
estimates for the overall cost amounting people’s eyes and this was the Clyde Gateway, Scotland’s
to £750m. biggest and most ambitious regeneration
The concerns surrounding a cash- changed possible programme, estimated to have attracted
strapped city council being able to fund misconceptions £1.5bn of investment, bringing in more
the games are being offset by the benefits than 4,500 jobs, with 80% of its 60,000sq
it could entail. Financial experts claim towards Glasgow.” m completed business occupied.
that holding an event of this magnitude Stephen Tucker, Glasgow (with the athletes’ Stephen Tucker, was part of the City
will see an estimated £750m pumped into village in Dalmarnock pictured above) Legacy team that was involved in
the regional economy, while improving securing the planning consent for the
vital infrastructure in not just Glasgow athletes’ village and delivered
Birmingham but the wider region. the regeneration of Dalmarnock. The
Hundreds of new homes in Perry Barr, Barton Willmore planning expert
increased transport investment for new compliments those behind the bid for
metro tram lines and rapid bus systems aligning projects already underway at the
were all part of the case to promote the time with the sporting event.
bid. The construction of an athletes’ “Without the successful bidding
village will provide a much-needed 1,000 process then we would never have got
new homes for the region, while the the public and private sectors working
creation of thousands of jobs and training together for the good of the city to
opportunities, and improved facilities for deliver a project to a timescale that was
communities should leave a much- prior agreed,” said Tucker. “The
needed legacy, according to those “Without the athletes’ village has probably had the
instrumental in the bidding process. most significant impact on the east end
But in order for the games to be prospect of the with the construction of 300 new
considered a complete success then the Games we would housing units every year which is a
West Midlands as a whole needs to be left number you would struggle to find in
in a better position, according to Kathryn have not got the any other housing development in
Ventham, who is part of the Birmingham same parties Glasgow. I believe the games really
team at the planning and design opened up people’s eyes and changed
consultancy Barton Willmore. around the table.” possible misconceptions some had
“If they get it right then we will be Kathryn Ventham, Birmingham (with an towards Glasgow and the east end from
talking about the benefits to a joined-up artist’s impression of the proposed athletes’ what they saw on their television
region and not just Birmingham,” village in Perry Barr pictured above) screens,” he said.
10 Infrastructure Intelligence | March/April 2018
Commonwealth Games