Private financing pays for £550m Heads of the Valleys section

10/11/2020 | RHODRI CLARK

The Welsh Government has awarded a major road widening contract, which will use private finance and is estimated to be worth more than half a billion pounds.

The new contract to dual 18km of the A465 Heads of the Valleys road between Dowlais and Hirwaun uses the Welsh Government’s Mutual Investment Model (MIM), a PFI variant in which the government holds a stake.

The Future Valleys consortium of FCC, Roadbridge, Meridiam, Alun Griffiths and Atkins will work with Welsh contractors and design teams. Construction, estimated to cost more than £550m, is due to start early next year and end in mid-2025.

Wales made much less use than England of the Private Finance Initiative but has sought to develop the model to make up for limited investment cash in infrastructure.

For 30 years, the Future Valleys consortium will receive government payments – an amount the government declined to disclose – while operating and maintaining the road.

The MIM was developed when the government expected to spend more than £1bn of its own funding on the now-cancelled M4 Relief Road at Newport, which would have meant alternative funding was needed for the A465.

Asked why the government was using private finance instead of borrowing, a spokesman said: ‘The MIM was developed following a decade of austerity and unprecedented pressures on capital budgets. The model has provisions to secure community benefits, sustainable development and ethical employment practices.’

Welsh transport minister Ken Skates said: ‘While it is inevitable there will be disruption while the project is being built, the contract requires Future Valleys to mitigate these impacts, with financial penalties for non-performance.’

Finance minister Rebecca Evans said this was the first use of the MIM, which ‘provides the best opportunity to complete the scheme as quickly as possible’. She added that having such a large project ready to go ‘has the real potential to accelerate the regional recovery’.

Dualling the A465 between Gilwern and Brynmawr remains unfinished, with contractor Costain writing off £45m following arbitration of its dispute with the government.

Highways InProfile

latest magazine issue
Highways jobs

Traffic Management Technician - WMF2240e

£28,598 - £29,540
Westmorland and Furness Council is seeking a committed and technically capable individual to join our Traffic Management Team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Technician-Road Closures

£35,422 - £38,730
The Network Planning division is seeking to appoint someone who is enthusiastic and a team player Derbyshire
Recruiter: Derbyshire County Council

Technician - Road Closures (2 Posts)

£29,719 - £31,691
The Network Planning division is seeking to appoint someone who is enthusiastic, an excellent team player Derbyshire
Recruiter: Derbyshire County Council

Structures Inspector

£Competitive
We are excited to offer a fantastic opportunity for two Permanent Structure Inspectors to join our dynamic SBIM team Bristol
Recruiter: Amey

Highways Maintenance Operative

£Competitive
We have fantastic opportunities for a permanent Highways Maintenance Operatives Kettering, Northamptonshire
Recruiter: Amey

Site Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Site Manager Bristol
Recruiter: Amey

Principal Commercial Manager

£Competitive
The SBIM contract involves delivering inspection and maintenance programmes for National Highways Bristol
Recruiter: Amey

Senior Commercial Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Senior Commercial Manager Nottingham, Nottinghamshire
Recruiter: Amey

Highways Maintenance Operative

£Competitive
We have fantastic opportunities for a permanent Highways Maintenance Operatives. Northampton, Northamptonshire
Recruiter: Amey

Managing QS

£Competitive
In this role, you will support the Senior Commercial team in the end to end commercial process for the Area 12 contract. Yorkshire and the Humber
Recruiter: Amey

Highways Inspection Officer

£32,962 - £36,791 per annum
We have an exciting opportunity for a Highways Inspection Officer to join us! Windsor, Berkshire
Recruiter: The Royal Borough of Windsor & Maidenhead

Highways Technical Assistant

£29,064 - £31,537
Are you looking for a varied role in a dynamic and innovative team environment that can make a real difference to North Yorkshire’s highways? Leeming Bar, Northallerton
Recruiter: North Yorkshire Council

Street Lighting Electrical Inspector

£34,434 - £38,220 per annum
Do you hold an ONC in electrical engineering or City & Guilds Electrician? Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior bridge Engineer - WMF2212e

£47,181 - £48,226
You will be the key responsible engineer for this area and will also provide technical advice and guidance to our team Cumbria / Various
Recruiter: Westmorland and Furness Council

Civil Enforcement Officer - WMF2221e

£28,598 - £29,540
Are you seeking an active and challenging role, part of a friendly and welcoming team? Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bridge Engineer - WMF2219e

£42,839 - £44,075
We are currently seeking to recruit an experienced and enthusiastic Bridge Engineer Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Public Transport Officer

£42,839 - £46,142
We are looking for an experienced public transport professional to become our Senior Public Transport Officer. Northamptonshire
Recruiter: North Northamptonshire Council

Principal Transport Planner (Strategy) (Fixed-Term)

£48,226-£51,356
We are looking for an experienced professional to join as a Principal Transport Planner (Strategy) Northampton, Northamptonshire
Recruiter: North Northamptonshire Council

Mobile Street Scene Operative

£24,796 to £25,989 per annum
The Waste and Street Scene department requires enthusiastic and committed mobile street cleansing operative. Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Technician - Highways Design (2 Posts)

Grade 10 £35,422 - 38,730 per annum
An exciting opportunity has arisen within the Professional Services Section Derbyshire
Recruiter: Derbyshire County 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