The Highways Agency has ruled out any further use of private finance to fund its capital works or maintenance programme.
The Highways Agency’s most recent use of PFI was for Connect Plus’ controversial £6.2bn, 30 year contract to upgrade and maintain the M25.
Earlier this year the Commons Public Accounts Committee said the approach will cost the taxpayer £1bn too much (NCE 11 February).
Highways Agency chief executive Graham Dalton said Connect Plus has had to “think hard” to see how it can do the work for the price agreed, adding that its bid came in “a lot lower” than estimated.
But he said that the Agency’s forward programme dominated by managed motorway schemes did not lend itself to PFI.
“The principles of PFI work well with an initial programme of capital expenditure and then a period of long term maintenance.
“We are in a position of having no backlog of maintenance demanding that capital spend,” he said.
Highways Agency: PFI off the agenda for now