WQ81631 (e) Tabled on 26/11/2020

Will the Minister provide evidence for her claim that the benefit-cost ratio of the project of duelling the A465 between Dowlais and Hirwaun remains positive?

Answered by Minister for Finance and Trefnydd | Answered on 07/12/2020

The core / initial Benefit Cost Ratio for this project is 1.01:1 with an adjusted BCR of 1.25:1 when wider benefits are included. This is based on the actual costs for construction, operation, maintenance, risk etc. at contract award.

A detailed re-assessment of the BCR was included as part of the Economic Case within the Full Business Case, which was considered as part of the decision to award the contract.

The BCR was based on the final scheme costs using the standard methodology conducted in accordance with Welsh Transport Appraisal Guidance (WelTAG) and the Treasury Guidance (Green Book).

While the BCR provides an important indication of the likely scale of economic costs and benefits for the project, it is an economic benefit analysis and does not incorporate all of the factors relevant to making an overall assessment of its value for money. The Economic Case also included the range of project benefits not captured within the BCR.