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Highways: Ex-bidder’s warning as two seek £2bn contract
Two contenders have entered the final bidding phase of Birmingham’s massive project to upgrade its road network with the help of private cash, as a former bidder warned of the risks.
Amey and Birmingham Street Services – the Ringway-led consortium backed by its parent, Vinci – have until the end of October to return ‘best and final offers’ for the £2bn project under the private-finance initiative. These were the only tenderers left after Mouchel Parkman and then Atkins/EDF Energy pulled out (Surveyor, 9 March).
While announcing record £75M profits for the year to March, Atkins said the PFI bid was expensive and ‘too risky’.
Uncertainty about the underlying condition of roads posed a fundamental risk, compounded by the transfer of council staff, said Richard Deacon, managing director of highways and transportation.
But Atkins stood ready to step in if the project was abandoned, he told The Birmingham Post newspaper. ‘Savings can be made if this PFI does not happen, and we would be very interested in talking about other proposals.’
The council hopes to clinch the deal by March for a start to the 25-year contract in September 2007. It covers upgrading and maintenance of England’s second city’s roads, footways, bridges, streetlights and traffic signals, together with management of highway trees and horticulture.
