25-year management contract for Ferrovial´s services subsidiary
Amey´s third PFI contract to manage and maintain municipal streetlighting
UK company Amey, a Ferrovial subsidiary, has been awarded a 25-year streetlighting maintenance and management contract in Manchester (UK) worth 165 million pounds under the Private Finance Initiative (PFI) scheme.
The contract includes the design, supply and installation of new high-quality streetlights, as well as the maintenance and management of existing units, making a total of 56,000 streetlights. Amey will commence the contract in July 2004, in consortium with UK company Laing.
One of the UK´s leading streetlighting services companies
This contract consolidates Amey´s position as one of the UK´s leading municipal streetlighting services companies and is in addition to the contracts it already manages in Walsall (since March 2002) and Wakefield (awarded in December 2003).
The PFI market for municipal streetlighting is set to expand in the UK: local authorities are expected to spend 4 billion pounds on replacing and maintaining municipal streetlighting in the next few years.
Services: revenues of over 2 billion euros in 2004
Amey is one of the UK´s leading services companies, specializing in infrastructure maintenance (roads, railways and underground rail) and facility management. Amey´s major contracts include a 30-year concession to maintain and modernize three lines of the London Underground (a total of 335 km of track and 100 stations), and a 500 million pound contract to manage and maintain the British armed forces vehicle and construction machinery pool.
In 2003, Ferrovial underwent an extensive transformation with the acquisition of services companies Amey and Cespa, becoming one of the main European companies in infrastructure maintenance and construction, urban services and municipal and industrial waste management. The integration of both companies will create a services division with revenues of over 2 billion euros in 2004, representing 30% of total Group revenues.
Notes to editors
The Manchester streetlighting contract requires certain levels of light (measured in lux) to be maintained, regardless of the number of streetlights and their maintenance.
The added value comes from optimizing streetlight design and distribution. This contract includes streetlight supply and installation, as well as maintenance.
Private Finance Initiative (PFI)
A private development model by which the concession-holder finances the construction and maintenance of the infrastructure, installation, buildings or service and receives a fixed payment from the local or central authorities in return. PFI contracts are subject to demanding quality standards.
Expansion of PFI market
The UK, one of the most developed PFI markets, uses this formula for contracts in transport infrastructure (suburban underground rail, roads and railways), health, education, justice, defense, etc.
This new financing scheme is beginning to be used in other developed countries as a means of developing new infrastructure projects and maintaining public services and installations.