THE flagship Mersey Gateway project faces many more months of uncertainty because of a failure to agree a funding package.

The Department for Transport (DfT) admitted no decision has been reached on how to meet the £600m cost of the Runcorn-Widnes bridge crossing, and did not rule out the delay stretching into 2012.

Now a source close to the Gateway scheme has revealed the frustrations of its backers, warning the bill is rising with every week that talks drag on.

And Derek Twigg, the Halton MP, urged ministers to “come clean” about the reasons for the hold-up – nine months after Chancellor George Osborne went on television to announce it would go ahead.

The six-lane bridge was granted planning permission before Christmas, clearing the way for Halton Borough Council to pursue land purchases and seek a private-sector partner to build and maintain it.

But the Treasury will provide only £86m – meaning the rest of the £600m must be funded through private finance initiative (PFI) credits and directly from the private sector, using toll revenue from a 30-year contract to pay off a loan.

Last year, Transport Secretary Philip Hammond criticised Halton council for suggesting the PFI proportion should soar to “over £300m” demanding more up-front private cash was found.

That is still thought to be the sticking point in Halton’s talks with the DfT – talks which have now dragged on for more than a year.