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Amey scoops 25 year £2.7bn Birmingham highways PFI

Amey has been named preferred bidder for Birmingham City Council’s £2.7 billion highway maintenance PFI scheme.

The other bidder in the running was Birmingham Street Services - a joint venture between Vinci, Ringway and Highways consultant WSP created specifically for the project.

The council will now finalise the details of the contract with Amey and draw up a detailed implementation plan before work begins in April 2010.

Over the course of the 25 year contract Amey will manage and maintain over 2,500km of the city’s highways including 96,000 street lights, 1,000 traffic signals and over 850 bridges, structures and tunnels.

Birmingham will be the first Metropolitan authority to implement a Highways PFI scheme of this scope and scale.

The council’s cabinet member for transportation Councillor Len Gregory  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.”

Birmingham will receive a £608 million PFI Credit from the Government. This equates to £1.22 billion as a cash grant over the 25 years of the contract - £48.9 million per annum.

Initially the council received a PFI Credit Offer in October 2003 for £379 million and this has subsequently been increased by a further £229 million.