Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Government part-funding for M25 'under consideration'

The government is examining plans to part-fund the £5bn M25 widening PFI scheme, should the Connect Plus consortium fail to secure all the money it needs from investors.

The Highways Agency was quick to say that: "The M25 DBFO contract is not on hold. We remain confident of a successful outcome, and start of work on widening the M25 is still programmed for April 2009."

However, the startling effects of the credit crunch may have made potential investors wary.

A Highways Agency spokesperson said: "Connect Plus, our preferred bidder, is in constructive and regular dialogue with the potential funding banks and we know they are keen to participate. Our aim is to see this stage of the project to a successful conclusion as soon as we can."

But: "Co-funding by Government is one option being considered. No decision has been made, and it would not be appropriate to comment further at this stage."

The contract is not awarded until PFI bidding has completed.

PFI bidding was due to close towards the end of 2009, but the Connect Plus consortium comprising Balfour Beatty, Skanska, Atkins and Egis Projects revised the deadline to 'early 2009'.

Balfour Beatty this morning said it was 'confident' it would close the M25 and three other PFI shemes before the first half of 2009.

Should Connect Plus fail to complete funding then the government could use taxpayer money to plug the shortfall and expedite the contract award.

Work on the DBFO is due to begin in April.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.