Through the Amey Ferrovial Agroman Laing O'Rourke consortium
The widening of the M25, worth 7.1 billion euro over 30 years, is the UK's largest ever road contract
Madrid, 16 October 2006. The consortium comprising Amey (Ferrovial's UK services subsidiary), Ferrovial Agroman and UK construction company Laing O'Rourke has been selected as one of the three finalists for the contract to design, build, finance and operate the widening of the M25 motorway for the next 30 years; the contract is worth approximately 5 billion pounds sterling, or 7.1 billion euro.
"With an estimated 4 billion euro in revenues in 2006, Ferrovial Servicios' growth strategy makes us a very competitive player in the international market", said Iñigo Meirás, General Manager of Ferrovial's Services Division. "We are able to bid as a single source for all phases of DBFO (design, build, finance and operate)."
The project, considered to be the UK's largest ever road tender, involves widening the M25 road, one of the most congested roads in the world, to four lanes each way along a length of 63 miles (102 kilometres), and subsequently maintaining the road. The M25 is an orbital motorway measuring 118 miles (190 kilometres) between Dartford and Thurrock. "This news vindicates our move into the UK construction industry, in synergy with all of Grupo Ferrovial's operations," stated José Manuel Ruiz de Gopegui, General Manager of the Construction division. "We are going to make use of our strong competitive advantage."
The UK Highways Agency (http://www.highways.gov.uk/
) prefers to award the entire 30-year DBFO contract to a single consortium so as to take advantage of scale economies and integrated management of all operations. The final decision will be announced in 2008 and road widening will commence in 2009. "This contract falls within the capabilities of just a few candidates in the world: those with an acknowledged combination of technical capabilities and financial strength."
Ferrovial in the UK
Ferrovial has been operating in the UK since 2003, in services, construction, and airport management. In services, Ferrovial operates through Amey, the UK's principal road maintenance company and a leading specialist in end-to-end maintenance of infrastructure (road, rail and underground) and facility management. It is also one of the largest and most experienced players in the field of private sector development and financing of infrastructure and services for government under the PFI and PPP formulae. Its principal contracts include a 30-year concession, held by Tube Lines, to refurbish and maintain the Jubilee, Northern and Piccadilly lines of London Underground.
Ferrovial recently acquired control of BAA, one of the world's principal airport operators, to become the largest investor-owned infrastructure operator in the world. BAA manages 7 airports in the UK (Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton) which are used by close to 145 million passengers each year.