Transport Scotland has awarded a £500 million design, construction, financing and operation contract for motorway upgrades and 30 years of maintenance to the Scottish Roads Partnership (SRP) after a Competitive Dialogue process cut £105 million from original estimates.
Around 900 local jobs are expected to be provided as well as other jobs along the supply chain. SRP is a consortium including Ferrovial and Agroman who will oversee the construction elements of upgrading key sections of the M8, M73 and M74, improving the Raith Interchange and upgrading the A8 trunk road between Baillieston and Newhouse to full motorway standard.
The project will complete the motorway network between Edinburgh and Glasgow to shave up to 18 minutes off journey times and is also said to represent the completion of the central Scotland motorway network.
Cintra and Amey will manage and maintain the network, while Meridiam and Uberior will provide investment. Funding is also supported by the European Investment Bank and a group of investors managed by Allianz Global Investors.
The project is the firs UK road to use bond finance since the 2008 global financial crisis and is the biggest to be let using the Scottish Government’s Non Profit Distributing model which is being used for infrastructure schemes worth some £2.5Bn.
Work is to start in the next couple of months and construction works should be completed in 2017. A pre start works agreement has been signed to allow advance works to get under way immediately, ahead of formal contract signing in February.
An SRP spokesperson said: “We are delighted to have been announced as preferred bidder to complete the Central Scotland motorway network. Our ambition is to maintain and build on Transport Scotland’s excellence in major infrastructure delivery and network operation. We are committed to keeping the central belt open during construction and minimising disruption to road users whilst we deliver this vital project. We pledge to deliver best value for the Scottish economy by engaging the local supply chain and creating local employment opportunities as well as skills development and training.”
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