Vinci Ringway has reached financial close on the £800 million Major Highways private finance initiative in Hounslow.
International law firm Pinsent Masons, which advised the joint venture, said closure of the project was significant as debate rages within the UK project finance community about the future shape of infrastructure investments.
The company advised on £120m of private finance for the deal.
Pinsent Masons is also advising Vinci and Ringway in relation to the Isle of Wight Highways PFI, which is expected to reach financial close shortly.
Pinsent Masons projects partner Jonathan Hart said: “Closing this project with the Vinci-Barclays Infrastructure Fund and Ringway teams is an important benchmark for the infrastructure market, having been achieved at a time of significant uncertainty in the PFI market pending the outcome of a government review into funding models.
“Although this project has been relatively unaffected owing to the pragmatism of all involved, it is essential that more certainty is created around PFI sooner rather than later.”
The project is being procured by Hounslow Borough Council and will see a special purpose vehicle of Vinci Concessions and BIF taking responsibility for a 25-year concession to maintain and enhance the highways, street lighting and structures within the borough.
Operations in the borough will be undertaken by a special purpose vehicle established by Eurovia subsidiary Ringway.
Funding for the project has been provided by BTMU, DZ and KfW banks.
Vinci Concessions PFI director Phil Jackson said: “We recognise that this is a particularly important project for the borough and are looking forward to working alongside the council over the coming months and years.”