Funding road clear ahead for £2bn Sheffield deal

31/07/2012
Highways Reporters

Sheffield City Council’s £2 billion Highway Maintenance PFI Project has reached financial close with Amey and agreed a major funding injection from the Department for Transport.

Work is now scheduled to start in August on the 25-year contract.

Amey will be responsible for bringing Sheffield’s highway network up to a high standard within the first 5 years of the contract and then maintaining that standard for the remaining 20 years of the deal.

Contractual discussions have now been completed and the financial arrangements are all in place.

The project is supported by the Department for Transport who have agreed to provide an investment totalling £1.2 billion over the life of the contract.

Councillor Jack Scott, Sheffield City Council’s Cabinet Member for Environment, Recycling and Streetscene said: “Reaching financial close and securing the funding from the Government’s Department for Transport is an important milestone in the project.

"This now means that we are even closer to providing Sheffield residents with the improved roads, pavements, bridges and streetscene they deserve.

“This project is a key priority for the Council and the people of Sheffield. This huge investment will provide us with a highway network and streetscene that will be the best in the country within five years.”

Mel Ewell, Chief Executive at Amey said: “We’re pleased that we’ve successfully reached financial close on this contract.  Securing the funding required to enable us to improve and then maintain the standard of Sheffield’s highway network is a major achievement in this challenging financial market.

“Since we were appointed as Preferred Bidder in April we have had a very close working relationship with the Council which has enabled us to be fully prepared to start the improvement works in August. We’re now eager to make a start on transforming Sheffield’s highway network and streetscene for the benefit of everyone who uses it.”

The contract will see Amey improving and maintaining the city’s highway assets as well as providing street cleaning and grounds and tree maintenance and carrying out all winter maintenance duties.

There will be a significant investment in the first five years known as the ‘core investment period’ when the majority of the improvements works will be carried out.

This work will involve improving roads and pavements, replacing street lighting columns and upgrading them and traffic signals with the latest LED technology, strengthening and repairing bridges and structures, improving flood prone drainage and replacing highway trees where necessary.

Approximately 480 Council staff will TUPE over to Amey.
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