Exclusive:A9 dualling: New uncertainty as ministers poised to ditch private funding
2035 completion date ‘very difficult to meet unless significant extra capital funding made available’
New uncertainty faces the delayed A9 dualling project because ministers are expected to reject private funding planned for much of the rest of the huge scheme, The Scotsman has learned.
A novel funding method being considered for 51 miles of the 70 miles still to be upgraded between Perth and Inverness is believed to have been deemed as not being value for money.
Rejection of the “mutual investment model” (MIM) could mean the entire £3.7 billion cost of the scheme being borne by the public purse at a time when the Scottish Government’s finances are significantly stretched. Some £520 million has been spent so far.
An industry source said the move could also make the project’s 2035 completion date - which is already ten years behind schedule - “very difficult to meet” without “significant” extra funding.
However, the Scottish Government’s Transport Scotland agency, which is in charge of the scheme, dismissed speculation it could push back the project two years to 2037.
Ministers announced two years ago that MIM funding was being considered for two of the six remaining dualling contracts.
The first is for 25 miles south from Slochd to Dalraddy, and Kincraig south to Crubenmore, with procurement due to start in winter 2026, the contract awarded in autumn 2028 and work completed by the end of 2033.
The other would cover 26 miles south from Crubenmore to Killiecrankie. Procurement is due to start in winter 2028 with that contract awarded in autumn 2030 and completed by the end of 2035.
The four other dualling sections, paid for by traditional government funding, are due to be finished by the end of 2033. The first, between Tomatin and Moy, where work started in April, is due to be completed in spring 2028.
The industry source told The Scotsman: “It seems their value for money exercise concluded that MIM isn’t appropriate for two projects of this scale. It’s also been known for some time that there was limited interest from potential lenders.
“Dualling these challenging sections of the A9 in the ‘traditional way’ will be very costly and the 2035 completion date will be very difficult to meet unless significant extra capital funding is made available.”
The Scottish Government said “funding routes” for the rest of the scheme would be announced in the Scottish Budget in January, followed by an update to MSPs.
Transport Secretary Fiona Hyslop, in a letter to Holyrood’s net zero, energy and transport committee, said that was because “any decision will have a significant impact on this and future spending reviews and budgets”.
Edward Mountain, the committee’s Conservative convener, said: “We must have value for money, and the project is inevitably going to cost the public purse more than it should by not being completed by 2025.”
A Scottish Government spokesperson said: “We remain committed to delivering full A9 dualling between Perth and Inverness and the 2035 timescale.
“In view of the significant financial commitment that this decision represents, the final procurement and funding routes for the remaining projects will be announced as part of the Budget and spending review, on January 13.
“The Scottish Government will request to make a Parliamentary statement shortly thereafter to provide further detail on the outcomes of this decision-making process and update on A9 progress and the dualling programme to the 2035 completion date.”
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