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.

Latest Issue

latest magazine issue

Also Inside:

  • Traffex Parkex review
  • Round table: Mastering modern contracting
View the latest issue


Highways jobs

Carbon Reduction Manager

£42,614 - £45,648 (pro-rata)
Are you driven to tackle climate change though decarbonisation? Newport (Casnewydd)
Recruiter: Newport City Council

Senior Engineer

£36,371
We are looking to recruit a Senior Engineer within the Structures team. Pontypridd, Rhondda Cynon Taf
Recruiter: Rhondda Cynon Taff County Borough Council

Transportation Planner

£35,336 - £39,571
A Transportation Planner is required for the analysis and monitoring of traffic, to design and undertake feasibility studies. Pembroke, Pembrokeshire (Sir Benfro)
Recruiter: Pembrokeshire County Council

Highways Service Manager (Commissioning & Contract Management)

£52,848 - £64,998
We are now looking to recruit a number of talented, motivated and innovative individuals. Northampton, Northamptonshire
Recruiter: West Northamptonshire Council

Highways Network Manager

£52,848 - £64,998
We are forming a new highways and transport team for West Northamptonshire Council Northampton, Northamptonshire
Recruiter: West Northamptonshire Council

Assistant Engineer

£27,514 to £29,174 per annum
A great opportunity has arisen for an enthusiastic and self-motivated individual to join our team Preston, Lancashire
Recruiter: Preston City Council

Highways Transport Strategy and Development Manager

£52,848 - £64,998
This is a unique opportunity to join a newly formed unitary authority which is mobilising a new highways contract. Northampton, Northamptonshire
Recruiter: West Northamptonshire Council

Principal Officer (Network Coordination)

£39,571 - £42,614
We are looking for experienced and well-motivated staff to help shape the future delivery of the service. Oxford, Oxfordshire
Recruiter: Oxfordshire County Council

Senior Highways Officer

£36,371 per annum plus £2,000 Market Forces
Hertfordshire truly is the County of Opportunity Hertford, Hertfordshire
Recruiter: Hertfordshire County Council

Highways Development Manager

£44,624 per annum plus £3,000 Market Forces
We are actively recruiting for Highways Development Managers within the Environment & Transport Department Hertford, Hertfordshire
Recruiter: Hertfordshire County Council

Roadworker Ganger (Civils)

£21,989 to £24,447
City of York Council are looking for a number of Roadworker Gangers to join its Highways Capital Projects Team. York, North Yorkshire
Recruiter: City of York Council

Highways Inspector.

£25,419 - £28,226
You will be responsible for the planning and carrying out statutory highway inspection. Northumberland
Recruiter: Northumberland County Council

Highways Operative - Barrow x4

£22,571 – £23,484
We are looking to recruit a new Highways Operative to our Highways Service. Cumbria
Recruiter: Cumbria County Council

Highway Asset Principal (Performance & Information)

£44,624-£48,684
We're eager to find a compelling and persuasive individual to take advantage of this brand-new opportunity within our Highways Asset Team. Lancashire
Recruiter: Lancashire County Council

Inspector / Senior Inspector

£22,129 - £32,798 pa
Bradford Metropolitan District Council is seeking to recruit an Inspector/Senior Inspector to join the friendly Highway Maintenance Team Bradford, West Yorkshire
Recruiter: City of Bradford MDC

Assistant Contracts Manager

£29,184 to £32,389 - Plus market leading package (see below)
Derbyshire County Council are looking for an experienced Assistant Contract Manager Willington, Derbyshire
Recruiter: Derbyshire County Council

HGV Mechanic

£23,657 - £25,568 per annum – plus market leading package (see below)
We are looking for a highly motivated Heavy Goods Vehicle Mechanic to join our County Transport team. Brimington, Chesterfield
Recruiter: Derbyshire County Council

Procurement Programme Manager

£54,873 – £60,366
We have an exciting opportunity for a Procurement Programme Manager to join our team. Stratford, London (Greater)
Recruiter: East London Waste Authority (ELWA)

Team Leader LGV Driver

£22,571 - £25,419
An opportunity exists in the Council’s Street Scene Services for a Team Leader LGV Driver. Wakefield, West Yorkshire
Recruiter: Wakefield Council

Multi Skilled Operative

£20,444 - £22,129
We are seeking enthusiastic and capable colleagues to join our Highway Operations team. Wakefield, West Yorkshire
Recruiter: Wakefield Council

Highways Presents

 

Highways on Fridays

Register now!

Latest Video