Supplementary Guidance - Resource Funding (REPS)

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 resource 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 resource funding (the Rail Environmental Benefit Procurement Scheme (REPS)(1) and the Waterborne Freight Grant (WFG)(2) administered by the Department. Full guidance relating to both schemes 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

Details of restrictions that will apply

Whilst all bid rounds are open for applications for funding up to the 31st March 2010, the Department will restrict the volumes contracted in 2009/10 to ensure that the SDF remains open to new applications and there is sufficient flexibility in future years to cope with any changes in the market.

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.

Prioritisation and deliverability

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.

It is important that applications for grant contain the required information as outlined in the relevant scheme guides. 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).

1 REPS: Assists companies with the operating costs associated with moving freight by rail instead of road

2 WFG: Assists companies with the operating costs associated with moving freight by water instead of road