Explanatory note

This Order releases the Humber Bridge Board from its obligation to pay the Secretary of State for Transport a proportion of principal and interest arising under agreements for the financing of the construction and maintenance of the Humber Bridge. This Order comes into force on 31st March 2012, save for article 2(3)(c), article 2(1) (to the extent that it relates to article 2(3)(c)) and article 3 which come into force on 1st April 2012.

Article 2(1) provides that the sums referred to in article 2(3), which are payable under the terms of the agreements referred to in article 2(2) (“the Agreements”), are no longer payable. Sums payable under the Agreements comprise a debt on which interest accrues.

Article 2(3)(a) provides for the waiver of the sum of £38,789,000 specified in item 15 of the Table in paragraph 3 of the Schedule to the Humber Bridge (Debts) Order 1998 (“the 1998 Order”), being an amount of principal. This builds upon the terms of the 1998 Order which releases that sum from the accrual of interest. Article 2(3)(b) provides that a further amount of principal of £111,211,000 is not payable.

After deducting the sums specified in articles 2(3)(a) and (b) an amount of interest, calculated at the applicable rate, will accrue on all sums owed to the Secretary of State commencing on 1st April 2012. The sum being waived by article 2(3)(c) of this Order is that proportion of the accrued interest which exceeds an amount of such interest calculated as if the applicable rate of interest was 4.25% per annum. In practice the effect of the waiver will be to reduce the annual rate of interest payable on those sums owed to the Secretary of State under the Agreements.

As article 2(3)(c) sets a lower rate of interest on the remaining debt than is contained in the Humber Bridge (Debts) Order 2011, that Order is revoked.

An impact assessment has not been produced for this instrument as there is no anticipated impact on the private or voluntary sectors. An Explanatory Memorandum is available alongside this instrument on www.legislation.gov.uk.