Welsh cousin of PFI could fund further projects

10/02/2020 | RHODRI CLARK

The Welsh Government is not ruling out using its novel Mutual Investment Model (MIM) to fund further transport projects, beyond the Hirwaun-Dowlais A465 dualling.

Procurement of contractors to finance, build and operate the Hirwaun-Dowlais dual carriageway (on the existing alignment) is due for completion this summer. The Welsh Government will make annual service payments over 30 years.

The MIM was developed in 2017 to enable Wales to dual the road and build schools and a cancer centre despite real-terms cuts in the Treasury’s block grant to Cardiff. Also, the Welsh Government earmarked much of its own borrowing for the £1.6bn M4 Relief Road at Newport, shelved last summer.

Former UK chancellor Philip Hammond banned new Private Finance Initiative schemes, but the Welsh Government believes the MIM, in which the public sector holds a minority stake, avoids the negatives of earlier Public Private Partnerships while incorporating benefits such as optimum risk allocation, whole-life costing and performance-based payments.

A spokesman said: 'As our capital budgets are under unprecedented pressures following a decade of UK Government-imposed austerity cuts, the MIM was developed to attract new investment to fund our ambitious programme.

'We will consider using the MIM to fund future infrastructure projects only once we have exhausted all conventional sources of capital funding, including using the borrowing powers of Welsh ministers and other bodies in Wales.'

The spokesman said the MIM contract would be different from the current A465 dualling between Brynmawr and Gilwern – hit by delays and cost increases – because the Welsh Government would not pay for the infrastructure until it is operational.

The risk of cost increases and programme delays would lie with the contractor, with penalties for non-performance.

The procurement involves 'competitive dialogue' between the government and bidders to identify technical solutions, as used for the Wales and Borders rail franchise which includes electrification.

Highways InProfile

latest magazine issue
Highways jobs

Senior Civil Engineer - Major Projects x 4

£45,894.00 - £54,952.00
We are looking for experienced engineers to help us progress a number of key projects and programmes Glasgow, Glasgow City
Recruiter: Transport Scotland

Technician - Maintenance

£31001.0000 - £36471.0000 per annum
Essex Highways is responsible for managing and maintaining one of the largest highway networks in the country
Recruiter: Essex County Council

Highways Contract Engineer

£46,731 - £49,764
The team helps provide a safe road network that operates efficiently and effectively.  Northamptonshire
Recruiter: North Northamptonshire Council

Principal Transport Planner

£46,731 - £49,764 (pro-rata)
We are looking for an experienced professional to join us on a six-month temporary contact as a Principal Transport Planner. Kettering, Northamptonshire
Recruiter: North Northamptonshire Council

Highways Maintenance Operative

£Competitive
We have a fantastic opportunity for a Permanent Highways Maintenance Operative Broughton, Brigg
Recruiter: Amey

Head of Highways Contracts & Network

£81,803 progressing to £90,664 per annum
The team includes approximately 60 directly employed HCC people Hertfordshire
Recruiter: Hertfordshire County Council

Principal Construction Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Principal Construction Manager Yorkshire and the Humber
Recruiter: Amey

Quality Technician

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Quality Technician Yorkshire and the Humber
Recruiter: Amey

Senior Highway Engineer (Development Management)

£42679.0000 - £50211.0000 per annum
Senior Highway Engineer (Development Management)Permanent, Full Time£43,960 to £51,718 per annum*Location
Recruiter: Essex County Council

Project Manager (Major Projects)

£44,711 - £47,754
Are you an experienced project professional or engineer with looking to take the next step in your career? Halifax, West Yorkshire
Recruiter: Calderdale Metropolitan Borough Council

Senior Civil Engineer - Roads

£45,894 - £54,952
Are you an experienced engineer looking to support the Scottish Government’s national objectives. Scotland
Recruiter: Transport Scotland

Senior Civil Engineering Technician

Grade 7 £29,093 to £32,654 per annum
We are looking for a flexible individual who has the ability to meet targets and analyse and resolve complex technical problems and formulate a design Durham
Recruiter: Durham County Council

Project Team Manager

£55,147 to £60,676 per annum
We are pleased to be able to offer an opportunity for a role as Design Team Manager Norwich, Norfolk
Recruiter: Norfolk County Council

Clerk of Works

GRADE 08 (£37,938 - £41,511)
Warrington is one of the most successful towns in the country Warrington, Cheshire
Recruiter: Warrington Borough Council

Assistant Projects Engineer

GRADE 06 (£29,093 - £32,654),GRADE 07 (£33,366 - £37,035), GRADE 08 (£37,938 - £41,511)
Warrington is one of the most successful towns in the country Warrington, Cheshire
Recruiter: Warrington Borough Council

Principal Engineer - Traffic Management

£45,718 - £48,710 per annum
At Bath & North East Somerset Council we have one overriding purpose – to improve people’s lives. Bath, Somerset
Recruiter: Bath & North East Somerset Council

Vehicle Technician - Improver

£28,624 - £30,060
Transport Services is responsible for all aspects of transport and related services Huddersfield, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Programme Delivery Office Administrator

Grade 9 £31,344 - £33,253 per annum
At Derbyshire, we have been on a journey to transform the way we deliver highway services to make them fit for the future Derbyshire
Recruiter: Derbyshire County Council

Support Officer - Highways Asset Management Systems

£31,586 - £34,314
We are a forward-thinking organisation dedicated to maintaining and improving our highway infrastructure. Lincolnshire
Recruiter: Lincolnshire County Council

Principal Transport Planner (Strategy)

£46,731-£49,764
We are looking for an experienced professional to join North Northamptonshire Council as a Principal Transport Planner (Strategy). Sheerness House, 41 Meadow Road, Kettering moving to Haylock House, Kettering Parkway, Kettering NN15 6EY, United Kingdom
Recruiter: North Northamptonshire 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