Exclusive: O'Sullivan - Stonehenge and Lower Thames must be publicly financed or delayed

09/11/2018 | DOMINIC BROWNE

In one of his first interviews since the Budget, Highways England chief executive Jim O'Sullivan told Highways it was too late to find a new private finance model for the Stonehenge and Lower Thames Crossing schemes if they are to open on time.

The new comes after chancellor Philip Hammond used the Budget to announce the end of PFI deals, saying he would not sign anymore.

The Stonehenge tunnel (pictured) and the Lower Thames Crossing had been slated to make extensive use of PFI deals - with the A303 Stonehenge project using private finance for the entire scheme and the Lower Thames project using it just for the road sections.

'We were significantly down the road towards PFI,' Mr O'Sullivan said.

'In moving from a PFI to a traditional contracting model, which is almost certainly where we are headed, it creates time. Traditional contracting is quicker to do than PFI. PFI is a fairly complex financial instrument. Traditional contracting, well we already do it and we have an example the A14 - which is running very successfully. So we know that we have a mechanism for contracting that works.

'We are not in a bad place because it’s a simpler mechanism. We have the time to switch from PFI to traditional contracting - whatever traditional contracting means.'

When asked by Highways if it meant that all the money will come from public finance and Highways England's own budget, Mr O'Sullivan confirmed that it would have to.

'Yes. There is no [other] way. PFI is complex. It will take a period of time to design a new type of public finance mechanism that satisfies the chancellor’s requirements of value for money. We don’t have that time if the A303 is to open by 2026 and the Lower Thames Crossing is being talked about being open by 2027.

'We are on a tight timescale to deliver on the existing PFI. To design a new PFI and deliver that would not allow us to make the original timescales. So you have to switch to public money in some way, shape or form.'

Highways InProfile

latest magazine issue
Highways jobs

Senior Transport Planner

£47,532 - £50,574
Royal Greenwich is a borough synonymous with first class modern services Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Technician - Highway Inspector

Grade 8 £28,797 - £30,708 per annum (Pay Award Pending)
Within the Highways Maintenance Team we are looking for an enthusiastic, customer focused and experienced person to join the Service Derbyshire
Recruiter: Derbyshire County Council

Project Delivery Senior Team Leader

£74,480 - £85,964
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification) Glasgow City
Recruiter: Transport Scotland

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
Westmorland and Furness Council is seeking an organised and enthusiastic individual to join our South Lakeland team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bulky Operative

£25,584.00 - £27,269.00, Grade 5, 37 hours, Permanent.
An opportunity exists in the Council’s Street Scene Services for a Bulky Operative Wakefield, West Yorkshire
Recruiter: Wakefield Council

Project Delivery Team Leader

£57,710 - £71,842
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification). Glasgow City
Recruiter: Transport Scotland

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Shared Service Manager (Waste) North Herts Council

£52000 - £61000 per annum
Shared Service Manager (Waste) North Herts CouncilNorth Herts CouncilPermanent, Full Time£52,866 - £61,866 per annum, plus car allowance (pay award pe England, Hertfordshire, Letchworth Garden City
Recruiter: Essex County Council

Street Scene Protection Officer - Braintree District Council

£30000 - £34000 per annum
Street Scene Protection Officer - Braintree District CouncilBraintree District CouncilPermanent, Full Time£30,313 to £34,612 per annumLocation
Recruiter: Essex County Council

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
This is a key support role, helping to deliver a wide range of traffic and road safety schemes across South Lakeland. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Flood Risk Engineering and Strategy Officer

£49,764 - £55,623
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Senior Integrated Transport Officer

£34,324 - £37,529
Are you an experienced transport planning professional ready to influence strategic policy and drive real change Matlock, Derbyshire
Recruiter: Derbyshire County Council

Roadworker Trainee LGV Driver (3 Posts)

Grade 6 £25,183 - £25,638 per annum (Pay award pending)
We’re looking for Roadworker/trainee LGV drivers to be part of our team undertaking major highway, bridge and related construction and reconstruction Derbyshire
Recruiter: Derbyshire County Council

Engineer

£44,430 - £51,663
This post is within the Highways Design and Delivery Team. London (Greater)
Recruiter: Tower Hamlets London Borough Council

Civil Enforcement Officer - WMF3013e

£27,711 -£28,624
Are you seeking an active and challenging role, part of a friendly and welcoming team? Cumbria / Various
Recruiter: Westmorland and Furness Council

UGO Bus Driver

Up to £25081.00 per annum
UGO Bus DriverPermanent, Part TimeUp to £25,081 per annum (full time equivalent)Location
Recruiter: Essex County Council

Head of Highways Operations

Salary
Somerset Council
Recruiter: Somerset Council

Works Technician

£37,399 (plus unsocial hours allowance)
The Works Technician is responsible for ensuring that the London Trams civils and off-track infrastructure Croydon (City/Town), London (Greater)
Recruiter: Transport for London

Highway Network Technician - WMF2090e

£27,711 - £28,624
We are looking to recruit a friendly and motivated candidate to join our Highways Maintenance Team as Highways Network Technician. Kendal, Cumbria
Recruiter: Westmorland and Furness Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW