lower-thames-crossing-KPMG

CORPORATE FINANCE
Lower Thames Crossing
Regeneration and funding assessment
1 st December 2010
ADVISORY

Lower Thames Crossing: Regeneration and Funding Assessment
Some recent developments
Thames crossings
• Revenues maintained
to pay for new bridge
•Toll changes
CSR and
• Free flow
National
operation
Infrastructure
Plan
• Targeting
investment
at economic
growth
National policy
• Local Enterprise
Partnership
• Tax Increment
Financing
© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative,
a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity.
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Lower Thames Crossing: Regeneration and Funding Assessment
Economics and regeneration
Estimated economic impacts in 2016
Productivity
impact, £m
16
14
12
10
8
6
4
2
0
Existing crossing
Chadw ell to
Gravesham
Annual productivity impact, 2006 prices
Stanford-le-Hope
to Eastern
Gravesham
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Employment impact
New employment attracted
Source: KPMG analysis of data from the KTS, SETLUM and MVA models
© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative,
a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity.
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Lower Thames Crossing: Regeneration and Funding Assessment
Finance and funding
“The increase in the charges at Dartford
will help fund proposals for a new,
additional crossing.”
DfT Transport Spending Review Press Notice, 20 October 2010
Potentially significant funding
• Gross toll proceeds from both
crossings
• Proceeds from lorry road user
charging
• Increases in local tax income
(but difficult to capture)
Small or unlikely funding
• Net new tolls from new users
• Developer contributions
• EU Funding
© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative,
a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity.
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Author’s contact details
Dominic Walley
KPMG LLP (UK)
+44 (0)117 905 4453
dominic.walley@kpmg.co.uk
www.kpmg.co.uk
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it
is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice
after a thorough examination of the particular situation.
© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative,
a Swiss entity. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative, a Swiss entity.
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