Birmingham Airport’s long-awaited runway extension moved a step closer after a crucial part of a £65 million funding package was confirmed.
But even with a £15.7 million contribution from the Government’s Regional Growth Fund toward the cost of diverting the A45, airport bosses are reluctant to confirm that a decision to give the 400 metre extension the final go-ahead is imminent.
The airport board will discuss the matter next week, but a source refused to confirm that the meeting will decide then to approve the scheme.
However, directors of the airport appear to be edging closer to a decision that could see the longer runway in place by 2014.
A spokeswoman said: “The legal paperwork supporting the tendering process for the runway extension scheme is in the final stages of agreement prior to the tender stage starting.”
The airport was one of five bids by companies and partnerships in the West Midlands to be successful in the first round of the fund.
The schemes promise to directly create 6,193 jobs in the region, with 34,669 more posts likely to be created in associated supply chains.
The others which have won funding in the West Midlands have been put forward by Jaguar Land Rover, Alstom Grid UK, Bosch Thermotechnology and Prince’s Regeneration Trust.
Birmingham City Council has agreed to underwrite up to £17 million toward the £32 million cost of moving and improving the A45 Coventry Road.
But the airport’s private sector shareholders, the Ontario Teachers Pension Plan and Victorian Funds Management, are yet to approve arrangements to raise the remaining £33 million cost of extending the runway.
The longer runway will allow non-stop direct flights from Birmingham to China, India and the west coast of America for the first time – enabling Birmingham to compete directly with the London airports and Manchester Airport.
Coupled with the Government’s decision to scrap the third Heathrow runway, and the likelihood of high speed rail services running from Birmingham Airport by 2026, the longer runway is expected to provide significant economic benefits by making it easier for global business to access the region.
Birmingham Chamber of Commerce, which backed the RGF bid, says that 10,000 new jobs could be created by improving the A45 and M42 corridor.
Chamber chief executive Jerry Blackett said: “This upgrade will be an enabler of the M42 corridor as an engine for growth. It is a vibrant part of the local economy and this upgrade is long overdue.
