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Contents

Question5................................................................................................................................................ 2
Definition of the Project ..................................................................................................................... 2
Size of the project ............................................................................................................................... 2
Question 8 ............................................................................................................................................... 2
Methods of Payments ......................................................................................................................... 2
References ........................................................................................................................................... 3

To be able to meet these costs. The project may also be referred to as an Opex project since it has ongoing operating expenses which are tax deductible. Capital expenditure projects or Capex projects as they are known in short are projects which involves the purchase or investment in a fixed asset such as a vehicle or construction building that provides a source of income for the future. In addition. a Council loan and a bond investment supported by the HM Treasury’s UK Guarantees Scheme and an equity investment.000 vehicles at the site daily.86 billion cost will include design.86 billion. An agreement has also been made with the UK government whereby over the first 12 years annual payments amounting to around £125 million is contributed for the operation purposes. The total cost of the project through to the year 2044 is estimated to be £1. the Halton council pays the Merseylink Consortium an annual fee known as a unitary charge until the year 2044. The construction cost amounted to £600 million. A capex project refers to any project where expenditures are made in the present to purchase or improve an asset with an objective of creating future financial benefits. The major capital investment in the Mersey Gateway project is the construction of the bridge from which in come may arise in the form of toll charges. The operation of the Mersey Gateway such as charging tolls has resulted in the creation of 4640 permanent jobs. The UK government also contributed £85 million for the purchase of land. operation. Spanning the river Mersey and the Manchester ship canal the bridge itself is constructed of concrete and steel and approximately 2200 metres long and has a clearance of 25 metres. build. Toll revenue from the users of the Mersey Gateway and Silver Jubilee Bridge is used to as the main source for funding the investment costs such as the cost of construction. The £1. Typically. The agreements include making the road available to users and ensuring the average speed of the users does not drop below an agreed minimum. .Question5 Definition of the Project The Mersey gateway project may be defined as a Capex + Opex project. a financial arrangement was put in place by Merseylink which consists of bank loans. maintenance and building cost. Size of the project The construction of the bridge was a major undertaking consisting of the use of around 80. This charge is based on the consortium meeting a set of agreements made with the council. The project opened in the Autumn of 2017 as the first step to kickstarting a 20-year regeneration programme in Halton. Question 8 Methods of Payments The contract for this PFI arrangement was awarded to the Merseylink Consortium in March 2014 for the design. finance and operation (DBFO) of the Mersey Gateway Bridge project over a 30-year period.

[online] Available at: http://www.co.uk.merseygateway. N. [online] liverpoolecho. . [online] Available at: http://www.uk. (2018).uk/about-the-mersey-gateway-project/funding- of-the-mersey-gateway-project/ [Accessed 14 Feb.liverpoolecho. Funding of the Mersey Gateway Project | The Mersey Gateway Project. Cite a Website .Cite This For Me.co. (2018). 2018].merseygateway. Merseygateway.uk/wp- content/uploads/2014/10/13404-The-Mersey-Gateway-leaflet_Sept-2014.pdf [Accessed 14 Feb. You won't believe how quickly the Mersey Gateway is taking shape. 2018].co. 2018]. (2018).co.uk/news/liverpool-news/mersey-gateway- bridge-takes-shape-11453302 [Accessed 14 Feb.co. Available at: https://www. Merseygateway.References Macdonald.