Carillion has been appointed to a scheme to construct a new 7km dual carriageway in Leeds, which has contracts worth up to £120M.
The company has won the £14M advanced works contract for the first stage of the East Leeds Orbital Road (ELOR) scheme to make improvements to the existing highway network, Leeds City Council has confirmed. It is expected to begin works early next month.
It comes ahead of a key week, where over the weekend there were reports a business plan is due to be presented to creditors and other stakeholders on Wednesday. The plan is reported to form the basis of a “proposal to restore Carillion’s balance sheet”, a spokesperson told the BBC.
On the Leeds scheme, the West Yorkshire Combined Authority (WYCA) approved the funding to begin work to prepare five existing junctions for future demand and to address congestion issues.
Carillion also has early contractor involvement to progress the proposals from the planning approval stage, and will be given the opportunity to deliver the final two stages worth an estimated £100M.
The proposed dual carriageway, which is expected to be operational by 2021, will include five new crossings, five new roundabouts, and a 9.8ha country park to the east. Construction is expected to take about three years.
The orbital road is divided into four sections: Red Hall, Northern Quadrant, Middle Quadrant and Southern Quadrant.
The dual carriageway is part of the wider East Leeds Extension that aims to unlock this underdeveloped section of the city and includes a £116M transport improvements package. 5000 homes are expected to be built as part of the development.
Consultancy WSP took the scheme to planning permission.