Amey preferred bidders for Highways PFI

By on 04/08/2009 in News, Video News

Birmingham City Council today announced that Amey has been selected as its preferred bidder to deliver the £2.7 billion contract to repair, modernise and maintain the city's roads for the next 25 years.

Councillor Len Gregory, Cabinet Member for Transportation and Street Services, said: “The City Council is leading the way with a pathfinder project that I believe will leave the City of Birmingham with a legacy of good roads.

“This project will provide a significant capital investment in our roads to bring them up to a good standard and then maintain that for a generation.

 “The process to reach a preferred bidder appointment has rightly been a detailed one. We received two very good bids and these have been evaluated thoroughly. We have explored a number of value for money options that justify this process.

“The result is a potential deal that can deliver the well-maintained highway network that the people of Birmingham deserve.

“Our next steps will be to work with Amey to finalise the contract details. After the contract is signed, we will work closely together to draw up detailed implementation plans, with the intention of commencing work in April 2010.”

Mel Ewell, Amey Chief Executive, said: “Amey is extremely pleased and excited to be announced preferred bidder for Birmingham City Council’s highways PFI.

“We are aware of the key role the preferred bidder will play in supporting Birmingham’s continued development and we are looking forward to delivering not only a step change in the city’s highway infrastructure and highways service, but also supporting Birmingham’s vision to be a ‘global city with a local heart.”

Notes for editors:
1. The Highway Maintenance and Management PFI project is for 25 years, with a private sector Service Provider.
2. Birmingham has over 2,500km of highway, which includes 96,000 street lights, 1,000 traffic signals and over 850 bridges, structures and tunnels. Managing and maintaining all these assets is included within the PFI project.
3. Birmingham City Council first received a PFI Credit Offer in October 2003 for £379m. This has subsequently been increased by a further £229m.
4. Birmingham will be the first Metropolitan authority to implement a Highways PFI scheme of this scope and scale. Portsmouth City Council implemented the first 'Street Scene PFI' in 2006, but on a much smaller highway network.
5. Other authorities have implemented Street Lighting PFI schemes but these are of a smaller scale to that involved in Birmingham.
6. Services in the contract include:
• Investing to remove highway maintenance backlogs and raise standards;
• Managing highway activity, such as inspections, assessments and utility works on the network;
• Performing on-going maintenance, to keep assets at the required standard; and
• Providing operational responsiveness for emergencies and activities such as winter gritting.
7. Bidding consortia were:
• Amey plc (a subsidiary of Ferrovial); and
• Birmingham Street Services (a company created specifically for Birmingham, bringing together Vinci, Ringway (part of the Vinci Group) and Highways consultant WSP).
8. Birmingham will work with the Preferred Bidder to finalise the contract details over the coming months.
9. A final decision to enter into contract will be taken in autumn 2009.
10. Expected Service Commencement Date is 01 April 2010.
11. Birmingham will receive a £608m PFI Credit from the Government. This equates to £1.22bn as a cash grant over the 25 years of the contract (£48.9m per annum).
ENDS
Further information from Barbara Bojang, 0121 303 3885

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