Contractors line up for £1.2bn Birmingham PFI

14/01/2022
Steve Menary

A host of industry names are showing interest in a Private Finance Initiative (PFI) concession to maintain roads in Birmingham, which could be worth at least £1.2bn.

Contractors including Balfour Beatty Carnell, Colas, Kier and Tarmac and consultants Arup and Arcadis are among the companies that have signed up to attend an open day on January 18, when the council will outline plans for the deal.

The council originally signed a 25-year, £2.7bn highways management and maintenance contract with Amey in 2010 but the two sides became bogged down in a performance dispute. The deal was terminated in March 2020 with Amey paying £215m to terminate its involvement and Kier stepping in as interim contractor.

Since then, the council and Birmingham Highways Limited – the special purpose vehicle owned by Equitix and PIP Infrastructure Investments – have been working to restructure the contract.

Kevin Hicks, the council’s assistant director for highways and infrastructure, said: 'Extensive work has been put in over the last two years by all of the project parties and with the close support of the DfT [Department for Transport] in order to establish a workable and deliverable contract framework.

'Many lessons have been learned from the first 10 years of the project and with the insight we have gained from the industry through previous engagement exercises we believe that we have an attractive prospect for the market. As a result, we are extremely encouraged and excited by the interest this huge opportunity is generating within the industry.'

The tendering process is due to begin in February and is expected to take nine months. The value of the deal is unconfirmed, but the new contractor will be responsible for the remaining 12 years of the original deal.

In an earlier prior information notice, the council and BHL said it is seeking a contractor to take on a PFI concession from August 2023 until June 2035 that would be worth £1.2bn.

'We are confident that we can create a level playing field for all interested parties, and look forward to presenting our contract to the industry at the supplier day,' said Natasha Rouse CEO of Birmingham Highways Limited.

The contract will cover 2,500-km of highways and 5,000-km of footways, three tunnels, 846 structures, 94,000 street lighting columns, 76,000 trees and the city’s traffic control system.

Latest Issue

latest magazine issue

 

ALSO INSIDE:

  • Exclusive: Smart Motorways
  • Are you AI protected?
  • Traffex Parkex Evex Cold Comfort
View the latest issue


Highways jobs

Business Improvement Officer

£31869 - £34663
We have an exciting opportunity in our Highways & Transport Business Improvement Team for a Business Improvement Officer. We are looking for an experienced, efficient, and flexible person who can provide high quality support. It is an extremely interesti One Angel Square
Recruiter: West Northamptonshire Council

Highways Contract Inspector

£36734.00 - £39278.00
This is an exciting time to join our Contact Investigation team! You don’t need experience across all aspects of the role you’re applying for as that will form part of your development journey, but you will need experience of highway projects, contrac Northampton
Recruiter: West Northamptonshire Council

Maintenance Engineer - Traffic Signals

Competitive
Reporting to the Maintenance Manager this is a great opportunity to be part of a successful and performing maintenance team, maintaining the Traffic Signals, across London. Carrying out both reactive and planned maintenance on traffic signals. England, London
Recruiter: Telent

Principal Planning Liaison Officer

£39,186 to £43,421 per annum
Working in Somerset provides the opportunity to help improve lives of the people that live here Taunton, Somerset
Recruiter: Somerset Council

Waste and Street Scene Locality Manager

£48,474 per annum - £52,504 per annum
We are looking to recruit a Waste and Street Scene Locality Manager. Harrogate, North Yorkshire
Recruiter: North Yorkshire Council

Assistant Director for Environment, Highways and Sustainability

£89,933 to £95,809
This is an exceptional opportunity to build on a decade of progress Solihull, West Midlands
Recruiter: Solihull Metropolitan Borough Council

Assistant Development Management Engineer - Section 38 Site Inspector

£33,945 - £36,648 per annum
The Section 38 Team, which is part of Planning & Environment is engaged in supporting the continued economic regeneration of Warwickshire. Warwickshire
Recruiter: Warwickshire County Council

Senior Officer (Highway Schemes) OCC616481

£43,421 - £46,464 per annum
We are determined to deliver a high quality, safe, sustainable, and reliable network. Oxford, Oxfordshire
Recruiter: Oxfordshire County Council

Assistant Arboricultural Consultant

£26100 - £30706 per annum + + 26 Days Leave & Defined Benefit Pension
Assistant Arboricultural ConsultantPermanent, Full TimeUp to £30,706 per annumLocation
Recruiter: Essex County Council

Community Highway Technical Support Officer

£31364 - £35745
Staffordshire County Council is one of the largest local authorities in the UK with an ambitious vision to help Staffordshire's economy grow. Staffordshire
Recruiter: Staffordshire County Council

Officer (Highway Policy and Performance) OCC616034

£32,076 - £34,834 per annum
We're determined to deliver a high quality, safe, sustainable, and reliable network. Oxfordshire
Recruiter: Oxfordshire County Council

Officer - Highway Records OCC616019

£32,076 - £34,834 per annum
We are a small team which maintains the record of the public highway within Oxfordshire. Oxford, Oxfordshire
Recruiter: Oxfordshire County Council

Highway Asset and Development Manager

Grade N Scp 50 £59,031 to Scp 53 £62,076, plus car allowance
To be responsible for leading, developing and delivering an effective, efficient and safe Highway Asset Management Service Bolton, Greater Manchester
Recruiter: Bolton Council

PWT/Labour Support

Negotiable
You will be carrying out PWT (Protection Worker on the Track) duties and protect staff whilst on or about the track during engineering hours and to as England, London, City of London
Recruiter: Telent

PWT/Labour Support

Negotiable
You will be carrying out PWT (Protection Worker on the Track) duties and protect staff whilst on or about the track during engineering hours and to as England, London, City of London
Recruiter: Telent

Street Environment Manager

ME13 - £45,021 - £48,060 per annum inclusive
An exciting opportunity has arisen to join Merton’s newly formed Public Realm directorate Merton, London (Greater)
Recruiter: London Borough of Merton

HGV Driver

£13.59 per hour
Our client has a great opportunity for HGV/LGV drivers. York, North Yorkshire
Recruiter: City of York Council

Engineer

£40,221 - £51,515
As part of a friendly and enthusiastic team, you will play an important role in designing innovative urban transport and public realm projects 100 Temple Street Redcliff Bristol BS1 6AN
Recruiter: Bristol City Council

Land Charges Coordinator

£27,803 – £31,364 per annum
It’s an exciting time to join our Highways Team here at Staffordshire County Council. Staffordshire
Recruiter: Staffordshire County Council

Road Adoptions Technician

£27,803 – £31,364 per annum
It’s an exciting time to join our Highways Team here at Staffordshire County Council. Staffordshire
Recruiter: Staffordshire County Council

Highways Presents

 


Latest Video