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  • Writer's pictureSafer Highways

Final two announced on Birmingham PFI Highways contract


SNC Lavalin and Kier announced as the final two bidders on the Birmingham Highways Contract.


SNC Lavalin and Kier Highways Have been invited to enter into further discussions over tendering for the remainder of the much maligned Birmingham Highways Contract.


The two competing firms will now be expected to prepare interim submissions and draft bids to help inform dialogue and progress negotiations.


Final contract bids are expected for the end of the year and should be formally submitted in January 2023, with the new contract due to be awarded in April 2023.


The original doomed contract, signed in 2010 with Amey came to an end in March 2020 with Amey paying £215m to extricate itself from the PFI.


At that point, Kier stepped in as an interim contractor and have delivered the contract since that point.


How Birmingham Highways new PFI Contract has changed









The very public debacle and subsequent dispute with Amey led the council to rethink its strategy with the amended contract with the council and PFI special purpose vehicle owned by Equitix and PIP Infrastructure Investments working hard to set the stage for successful reprocurement of the remaining 12 years of delivery from April 2023 to June 2035.


CEO of Birmingham Highways Limited, Natasha Rouse said: “We are excited to progress to the next stage in the procurement process with two experienced, knowledgeable and competent contractors.


“We are confident that the collaborative approach to procurement, embedded in the competitive dialogue process, will lead to an optimal and sustainable solution”.


Kevin Hicks, Assistant Director for Highways and Infrastructure at Birmingham City Council said “The City Council has worked hard with BHL to restructure the contract and ensure that it remains an exciting opportunity to deliver quality services in Britain’s second city.


“We are looking forward to this next stage of dialogue with the bidders and developing how they propose to deliver highway services on our behalf through to 2035.”


The two competing firms are expected to prepare interim submissions and draft bids to help inform dialogue and progress negotiations.


Final contract bids are expected for the end of the year and should hopefully be submitted in January 2023, with the new contract due to be awarded in April of the same year

In a statement, BHL revealed that the bidders will have access to the updated Management Information System (MIS), 'which has been brought up to date and contains the latest detailed information about the extent and condition of the network'.


The shortlisted pair also have access to a comprehensive and detailed project information package and advisor briefings, which are aimed to provide a platform for a competitive and transparent process.

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