Firms set to compete for £2.7bn Birmingham Highways contract

SNC-Lavalin and Kier Highways have progressed through the qualification stage for the £2.7bn Birmingham Highways PFI contract,

Birmingham City Council has now invited the firms to tender for the contract, who will now be expected to prepare draft bids to progress negotiations.

Bids are expected to be submitted in January 2023, with the new contract due to be awarded in April 2023.

Amey had originally secured the 25-year contract in 2010 but it entered a performance dispute with the council which resulted in Amey paying £215m to be released from the PFI.

Kier has stepped in as an interim contractor whilst the council and PFI are organising the re-procurement process.

CEO of Birmingham Highways Limited, Natasha Rouse said: “We are excited to progress to the next stage in the procurement process with two experienced, knowledgeable and competent contractors.

“We are confident that the collaborative approach to procurement, embedded in the competitive dialogue process, will lead to an optimal and sustainable solution”.

Kevin Hicks, assistant director for Highways and Infrastructure at Birmingham City Council said: “The City Council has worked hard with BHL to restructure the contract and ensure that it remains an exciting opportunity to deliver quality services in Britain’s second city.

“We are looking forward to this next stage of dialogue with the bidders and developing how they propose to deliver highway services on our behalf through to 2035.”