Herefordshire Council will this week announce its preferred bidder for a massive highways and public realm contract worth up to £1bn.
The winning contractor will invest up to £400M on road improvements.
The council will also select first and second reserve bidders in case the preferred bidder is unable to to supply required commitments on up-front investment.
The scope of the contract includes highways, parks, street cleaning and street lighting maintenance worth around £20M a year over 10 years. The contract could be worth up to £1bn if a 10 year extension is awarded and neighbouring authorities choose to use the contractor as well.
Amey is Herefordshire’s current highways and streetscene services supplier and is understood to be in the running for the new contract along with other bidders including Balfour Beatty Living Places.
According to a report submitted to Herefordshire Council’s cabinet last week, dialogue with bidders has already secured commitments for upfront investment of around £20M per annum to bring the county’s roads up to an acceptable standard. The council expects this to significantly reduce the cost of ongoing maintenance over the duration of the contract.
The preferred bidder, to be selected using a scoring matrix, will then enter detailed negotiations over its business case for investment in the county’s roads.