Supplementary Guidance - Investment Funding (FFG)

Bid Rounds - 2007/08 and 2008/09

Introduction

Procedures have been set out by the Department for Transport (Department) to make the best use of the investment budget available for the schemes which operate within the Sustainable Distribution Fund (SDF) in England. The procedures exist to facilitate the smooth operation of the SDF and maximise value for money for the taxpayer.

These procedures form part of the operational processes of the SDF and apply to applications for investment funding (the Freight Facilities Grant (FFG)) administered by the Department. Full guidance relating to the FFG scheme is available on the Department's web site.

Bid Rounds

The remaining 2007/08 bid round closing date for the allocation of resource funding is:

22nd February 2008 - for funding from 2nd March 2008

The 2008/09 bid round closing dates for the allocation of resource funding are:

6th June 2008 - for funding from 22nd June 2008

5th  September 2008 - for funding from 14th September 2008

28th November 2008 - for funding from 7th December 2008

20th February 2009 - for funding from 1st  March 2009

Before submitting a formal application applicants are reminded that they should approach the Department for informal advice on whether and to what extent a freight facility may be eligible for FFG. In cases where informal advice has not been sought the application may be refused and returned to the applicant. In such cases the applicant will be able to apply at the next bid round.

Prioritisation

Prioritisation across all schemes in the SDF will be based on Value for Money as expressed in a Benefit Cost Ratio calculation. Where appropriate other criteria may also be taken into account. For example, before deciding whether to offer support to a proposal the Department will consider any risks to its deliverability, or whether it might be viable long-term without grant funding.

For all bid rounds, the Department will only consider applications for grant for flows that yield a Benefit Cost Ratio of 1.5:1 or above.

It is important that all applications for grant contain the required information as outlined in the FFG scheme guide. In cases where information or evidence is missing the application will be refused and returned to the applicant. In such cases, the applicant will be able to reapply at the next bid round.

In some cases it may be in an applicant's interest to apply for less than the maximum grant entitlement so that the Benefit Cost Ratio of an application and the likelihood of securing funding are improved. The decision to do this, or not, is at the sole discretion of the applicant. However, applicants should be careful to ensure that the amount of support sought is sufficient to ensure the commercial viability of the traffic.

All unallocated funding from any bid round will pass to the subsequent bid round.

Applications

Application forms for each of the schemes operating within the SDF are available in the 'Freight' section of the Department's web site (www.dft.gov.uk).