Ferrovial, through subsidiary Cintra Infraestructuras
, a subsidiary of Ferrovial Services
, in consortium with SWIP Infrastructure Funds
, has achieved commercial and financial close of a DBFO (design, build, finance and operate) project to complete Central Scotland's motorway network. The M8 M73 M74 Motorway Improvements project has an estimated construction cost of around 310 million pounds (around 375 million euro), and the consortium will obtain revenues from operating and maintaining the infrastructure for 30 years after the new roads are opened.
The contract will be financed over the long term with a bond issue and a loan from the European Investment Bank, for a total of approximately 350 million pounds.
The project will alleviate traffic congestion between Glasgow and Edinburgh and drive economic development in the region. The consortium will construct a new motorway and upgrade the existing section of the A8 between Baillieston and Newhouse, improve the Raith Interchange and widen several sections of the M8, M73 and M74. The project comprises 28.6 kilometres of motorway: 12.4 kilometres will be newly built and the other 16.2 kilometres of existing road will be upgraded. A construction joint venture led by Ferrovial Agroman
will undertake the design and construction work, to be completed in spring 2017, and Amey will be responsible for operation and maintenance.
The concession period is for around 33 years from the contract signature. The project is based on availability payments, with the result that the concession company's revenues will be linked to service level and infrastructure availability.
The consortium has proven experience in managing global infrastructure and a track-record of excellence in construction as well as operational experience with local traffic. As a reflection of its commitment to the communities in central Scotland, the contract will boost local job creation and local supply chains.