Amey, the British subsidiary of Ferrovial Services, has reached the financial close for Sheffield City Councils Highway Maintenance Project. The company had been appointed preferred bidder in April for this project , valued at 2 billion pounds and that will last for 25 five years. This project, the second contract of these characteristics in the United Kingdom will start in August, being part of Ferrovial Services intelligent city strategy.
Sheffield City Councils £2 billion Highway Maintenance PFI Project has reached financial close with Amey, its private sector contractor for the 25 year contract. Amey will now be tasked with delivering one of the biggest highways projects in the country and providing the improvements which are needed to support the Councils ongoing plans for the regeneration of the city. They will be responsible for bringing Sheffields highway network up to a high standard within the first 5 years of the contract and then maintaining that standard for the remaining 20 years of the contract. Santiago Olivares, CEO of Ferrovial Services said: Were pleased that weve successfully reached financial close on this contract. Securing the funding required to enable us to improve and then maintain the standard of Sheffields highway network is a major achievement in this challenging financial market. Since we were appointed as Preferred Bidder in April we have had a very close working relationship with the Council which has enabled us to be fully prepared to start the improvement works in August. Were now eager to make a start on transforming Sheffields highway network and streetscene for the benefit of everyone who uses it. There will be a significant investment in the first five years known as the core investment period when the majority of the improvements works will be carried out. This work will involve improving roads and pavements, replacing street lighting columns and upgrading them and traffic signals with the latest LED technology, strengthening and repairing bridges and structures, improving flood prone drainage and replacing highway trees where necessary. This is the second contract of these characteristics that the company wins in the United Kingdom, within its intelligent city strategy, after the one signed with the Council of Birmingham. Reaching financial close is a crucial milestone in mobilising a contract of this size and scope. Contractual discussions have been completed and the financial arrangements are all in place. The project is supported by the Department for Transport who have agreed to provide an investment totalling £1.2 billion over the life of the contract. Councillor Jack Scott, Sheffield City Councils Cabinet Member for Environment, Recycling and Streetscene said: Reaching financial close and securing the funding from the Governments Department for Transport is an important milestone in the project. This now means that we are even closer to providing Sheffield residents with the improved roads, pavements, bridges and streetscene they deserve. This project is a key priority for the Council and the people of Sheffield. This huge investment will provide us with a highway network and streetscene that will be the best in the country within five years. The contract will see Amey improving and maintaining the citys highway assets as well as providing street cleaning and grounds and tree maintenance and carrying out all winter maintenance duties. It is anticipated that the contract will begin in mid August 2012 and on the day of transfer approximately 480 Council staff will TUPE over to Amey.