William Eichler 01 July 2019

Birmingham City Council and Amey reach £300m deal

Birmingham City Council has reached an agreement with Amey which will allow the outsourcing company to buy its way out of its highways contract for £300m.

The agreement comes after years of difficulties over the 25-year Birmingham Highways PFI contract, which included a five-year legal case in the Appeal Court over the £2.7bn deal.

The judge ruled in the city council’s favour and said that Amey had applied an 'ingenious new interpretation of the contract' to avoid certain repairs.

In April, Birmingham City Council also fined Amey £48.5m after the contractor failed to replace two damaged sets of roadside bollards.

Under the new agreement, Amey, which is owned by the Spanish infrastructure giant Ferrovial, will pay £215m in cash to extricate itself from the deal. £160 of this will be paid in 2019.

A further £55m will be payable over a six-year period.

A joint statement from Birmingham City Council and Amey plc said: ‘A consensual settlement agreement has been signed for Amey plc to exit the Birmingham Highways PFI contract.

‘As part of the agreement, Amey will continue to provide services until a replacement contractor is found to deliver those services on an interim basis.

‘That interim replacement will be sought as soon as possible, but will be in place no later than 1st April 2020.’

‘The full retendering of the project to find a permanent replacement contractor will take place during 2020/21,’ they added.

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner