The country’s largest highways PFI contract is set to begin after the Government announced more than £600m of funding today.
The PFI funding will allow Birmingham City Council to upgrade and maintain its highways infrastructure over 25 years. Contractor Amey has already been selected as preferred bidder for the £2.7bn project.
Transport minister Paul Clark said: ‘Well maintained local networks which work well for all road users – motorists, cyclists, pedestrians and bus passengers - are vital for communities and businesses to thrive.
‘This contract will see the condition of Birmingham's roads greatly improved and will include the maintenance of footways, bridges, street lighting and traffic signals.’
Today's announcement will allow the council to move to the final stage of contractual arrangements for the project. The precise amount of funding will be confirmed when contracts are signed.
Councillor Len Gregory, cabinet member for transportation, said: ‘This step change will see over £300m of investment in the early years of the project and will affect the way that we manage all highway infrastructures for generations to come.’
Birmingham will be the first metropolitan authority to implement a highways PFI scheme of this scope and scale. Portsmouth City Council implemented the first ‘street scene PFI’ in 2006, but on a much smaller highway network. The Isle of Wight, Sheffield and Hounslow councils are currently preparing similar contracts.
