Heartlands road suffers lack of private cash

Construction of the œ113 million Birmingham Heartlands spine road is being threatened by a lack of private cash with developers so far contributing just œ150,000.

Local private companies are required to contribute œ13 million towards the project which is expected to boost the area economically. The council is raising the rest of the money through transport grants.

The DoT has recommended that the council make up the shortfall with further grants and borrowings, but this comes at the same time the Treasury has been attacking Birmingham's borrowing levels.

A spokesman in the council's highways department said: 'Of course any shortfall in money from the private sector is a problem. But I think in view of the commitment already given by the Government and Birmingham City Council, I'm sure the scheme will go ahead as planned.'

The city's highways chief Steve McCabe has asked the Birmingham Heartlands Development Corporation to step up its efforts to raise the private money.

Failing that, he has asked the BHDC to see if it can find the shortfall from within its own budget.

Alan Bishop, projects and planning manager at the BHDC said: 'I don't believe the shortfall is an insurmountable difficulty. The problem is that we can't get the private money until the sites are opened up and the road is in. Then we can claim the money through Section 106 agreements. In the meantime, we are trying to capitalise on EC money for access, land reclamation and landscaping. That way we can open up sites earlier and take advantage of the 106 agreements. We are an Objective 2 area and can get EC funds quite easily.'