£2.7 billion roads PFI gets underway
BIRMINGHAM’S £2.7 billion highways PFI was launched this week, as the city council’s long term partner Amey begins the upgrade and maintenance of the city’s infrastructure network for the next 25 years.
Amey was advised by Wragge & Co during the process. PFI partner David Fennell led a cross-firm team, with support from partners Sarah Sasse, Phil Clissitt and Kieron Dwyer and associates Nicholas Foulkes and Joe Levin. Wragge & Co’s property, construction, employment, pensions, banking and litigation experts assisted. The team worked closely with Amey directors Keith Cottrell and Kelvin Dryden.
The start of the contract marks a substantial boost for the region by securing a large number of jobs, with around 250 employees transferring from the council to work on the project with Amey. A further 300 jobs will be created over the next year as work on the city’s network increases.
Amey will invest £350 million in repairing roads and pavements and providing thousands of new street lights in the first five years of the contract.
The Department for Transport and Birmingham City Council will fund the remainder of the project. Denton Wilde Sapte advised the consortium of lenders comprising the Bank of Ireland, Dexia Group, Lloyds Banking Group, Nationwide, Natixis and NIBC Bank. DLA acted for Birmingham City Council.
Mel Ewell chief executive of Amey said: “We are extremely pleased to announce the start of the Birmingham Highways PFI and launch this important partnership between Amey and Birmingham City Council. This significant project will not only deliver an enhanced level of service to Birmingham but will improve the city’s highway infrastructure for the travelling public in the region.”
Wragge’s David Fennell said: “We have been a valued and trusted legal adviser to Amey from the outset; helping to secure preferred bidder status in August 2009 after a five-year long process. The largest of its kind in the UK, this landmark project demanded strong PFI expertise and technical excellence.”
Councillor Timothy Huxtable, Cabinet Member for Transportation and Regeneration at Birmingham City Council, said: “This is the start of a grand vision for Birmingham, not only through surface improvements to the highways landscape, but is also a boost to the heart of the local economy.
“This is a highways maintenance project on a scale that has never been undertaken anywhere before in any part of the country. We will pride ourselves on the quality of our streets, roads and lighting and make Birmingham a much better place to live. Ultimately, businesses and residents will invest in a city that invests in itself”.
Amey, in partnership with Birmingham City Council’s Highways service, will be delivering a step change of improvements to the city’s road network over the first five years to remove any backlog of work and increase standards. Amey will maintain the infrastructure at this improved standard for a further 20 years.
While improvement works are being undertaken, Amey will also be working closely with Birmingham City Council’s Highways service to minimise congestion. Amey will also be supporting the development of the council’s overall traffic management strategy, which looks to reduce congestion and improve road safety on the city’s road network through its work at the council’s urban traffic control centre.
The contract has a 25-year service delivery period which includes the improvement and repair of roads in Birmingham, maintenance of footways, bridges, street lighting and traffic signals as well as the upkeep of street scenery such as safety barriers, seats and trees.
