£2.7bn Birmingham Highways contract secured by Kier

Kier has been revealed as the preferred bidder for the £2.7bn Birmingham Highways maintenance and management Private Finance Initiative (PFI) contract.

The infrastructure group has been maintaining Birmingham’s road network on an interim basis since April 2020, after Amey, who had originally secured the 25-year contract in 2010, entered a performance dispute with the council which resulted in the firm paying £215m to be released from the PFI.

Subject to approval by the government, the deal will start in February 2024 and continue until June 2035. Kier is set to cover 2,500km of roadways and 5,000km of footways across the UK’s largest local authority.

The other competing bidder was SNC-Lavalin through its Atkins operation.

Natasha Rouse, CEO at Birmingham Highways said: “We are delighted to announce Kier as our preferred bidder and would like to thank Atkins for their engagement and professionalism throughout the tender process.

“This announcement is a major milestone for BHL, BCC and all our stakeholders who have been working diligently with us to restructure this contract and provide long-term value and investment for Birmingham. We are excited to move forward with Kier and begin delivering the full scope of investment into Birmingham’s road network from February 2024.”

James Birch, managing director of operations and maintenance at Kier Transportation said: “We’re pleased to be appointed as preferred bidder for the Birmingham Highways Ltd contract. We have been delivering maintenance and repair services across the city’s extensive road network since April 2020.

“In that time, we have been committed to providing valuable career opportunities, and working with supply chain partners within the communities we work to add value to the local economy. Appointment to the contract will allow us to continue to deliver a safe and sustainable transport network in Birmingham.”