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Vinci beats Balfour Beatty to £800M Hounslow highways maintenance PFI deal

The London Borough of Hounslow Council has named Vinci preferred bidder for a 25 year contract to upgrade and maintain its 432km of roads and 763km of pavements.

The £800M contract, which is subject to the approval of the Department for Transport (DfT), is expected to start in January 2013.

An initial £100M construction phase will bring the borough’s roads, bridges, pavements, streetlights and signage up to standards.

Vinci/Ringway, the consortium tasked with construction, operation and maintenance, comprises Vinci Concessions, which holds shares in the concession company, and Vinci subsidiary Ringway. Ringway will actually carry out the work. It beat Balfour Beatty to the deal.

The consortium will be paid a fee based on network availability.

The highways PFI deal is one of only three which were up for grabs across the country. Decisions on deals for the Isle of Wight and Sheffield are expected in the next 12 months.

Vinci is also in the running for the Isle of Wight deal along with Colas and Amey. Sheffield is down to two bidders, Amey and Carillion/Mouchel.

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