Project leaders said that they are delighted that transport secretary Philip Hammond has confirmed that a detailed funding agreement for the project has been signed off by government. The announcement means that the Department for Transport has agreed to contribute up to US$732 million to the project over its lifetime.

Councillor Rob Polhill, leader of Halton Borough Council, said: “This is great news and clears the way for us to launch our competition for the delivery of the new crossing.”

Halton Borough Council chief executive David Parr said that the procurement phase can now begin to seek a private sector partner to work with the council to design, build, finance and operate the scheme.” We will also be consulting very soon on some of the details of the changes that will save around £30 million [US$46.7 million] on the cost of the project.”

Hammond said that further cost savings are expected through the competitive procurement process.

The procurement process is now planned to begin this month leading to construction work starting within two years. The new bridge is expected to take about three years to complete. The construction cost, including land purchase and remediation, is expected to be US$917 million.

“The Mersey Gateway Bridge is an important transport project which will improve journeys and boost economic growth,” said Hammond. “It will not only provide much needed traffic relief for the existing Silver Jubilee Bridge, but also help to regenerate the Borough of Halton, the Liverpool city region and the wider north west by improving transport links, maximising local development and regional economic growth opportunities.”

Mersey Gateway project director Steve Nicholson said: “We have been working very closely with Government over recent months to finalise the details of this agreement and I am delighted with the results. This agreement represents the best possible deal for the public purse and means that we can focus on delivering a project that will bring benefits to local people, commuters and businesses from across the region.”

The project was given initial funding approval last year and then received planning approval in December 2010.