Extreme events bespoke arrangements for hardship reasons
Where there is evidence that an extreme event, or a series of large events, results in emergency works expenditure beyond an Approved Organisation's ability to raise local share and continue to provide appropriate levels of service on its network over the next three years, the Transport Agency may consider a bespoke arrangement.
The criteria that the Transport Agency will consider in making a decision on bespoke arrangements include:
- the estimated annual emergency works local share by applying the above policy over the next three years, relative to the Approved Organisation's maintenance programme local share and its annual revenue – the expectation is that the emergency works local share would be a substantial proportion of both maintenance programme local share and revenue
- the financial position of the Approved Organisation and its ability to raise local share for the emergency works expenditure, ie evidence of hardship
- the urgency to complete the emergency works and ability to programme them over time.
The bespoke arrangement could, for instance, consist of a short-term enhanced emergency works FAR or the Transport Agency could front load more of the emergency works spend in the first year or two with the Approved Organisation paying its local share over a longer time period.
An application for a bespoke arrangement that involves an enhanced FAR would trigger the Transport Agency's significance policy, requiring the decision to enter an arrangement to be elevated to the Board. While any bespoke arrangement is being negotiated, the Transport Agency's emergency works policy above will continue to apply.