Merseytram consortium's answers to the vital questions THESE are the private consortium's answers to some of the key questions surrounding Merseytram: Is there a funding shortfall? There is no funding shortfall for Merseytram. The capital cost for Line One of the Merseytram system is £283m. The scheme is fully funded by the following: * Department for Transport - £170m * Other committed funding (NWDA, Objective 1, utility rebates, private sector capital allowances etc) - £83m * Merseytravel borrowing - £40m (maximum) Total: £293m What is the contingency requirement for the project and how is this being funded? The DfT has reduced the recommended contingency requirement from £30m to £24m. There is already a £10m surplus in the funding formula, and the removal of the 2008 moratorium (where work would have stopped in Liverpool city centre for Capital of Culture) could remove up to £11m from the contingency requirement. If there is still a requirement for additional contingency, DfT has proposed that it would be appropriate for Knowsley and Liverpool councils to make a balancing contribution. This is in view of the economic and regeneration benefits that the tram will provide to both districts and because of the additional Rate Support Grant being paid to these councils to finance concessionary travel. The maximum possible contribution required from the two councils would be £14m. The value of the concessionary fare windfall paid to Liverpool would be £7m and to Knowsley £2.2m. What are the risks of overspend? In the view of our experienced international team who will be building and operating the system, the funding structure is robust and realistic and there is a more than adequate contingency component built into the funding formula for Merseytram. What is the cost to the people of Merseyside if the Merseytram project does not go ahead? * Lost jobs - 200 full-time permanent jobs and a further 500 jobs during construction. * Congestion and gridlock - without the tram, there would be an extra 30,000-plus cars per day travelling to and from Liverpool city centre, an estimated 35% increase in rail trips and up to 100 extra buses per hour circulating around the city centre. Moorfields and Central station platforms might not be able to cope with additional passenger numbers. * Threat to key projects - large scale events at Kings Waterfront attracting crowds of 10,000 people would need at least 100 buses to carry public transport users. Without the tram, there would also need to be an extra 50 buses per hour serving Grosvenor's Paradise Street development. | 
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