Hounslow Highways Services, a 50/50 joint venture of Vinci Concessions and Barclays Infrastructure Fund, has finalised the financing for the contract to repair and maintain the highways network in the Hounslow Borough of London.
It is the first private finance initiative (PFI) contract won by Vinci in the UK highways repair and maintenance sector.
Awarded by the London Borough of Hounslow in March, the 25.5 year contract covers the upgrade, repair and maintenance of 432km of roads and 763km of pavements.
The project, which demands an initial investment of around £100M, will be financed by a bank loan of £88M together with around £20M in equity from the project company partners.
The total value of the contract, including service and maintenance, will be in the order of £650M. The Department for Transport will provide up to £349.5M of government funding. Hounslow Highways Services’ remuneration will be in the form of a fee based on network availability.
Construction, operation and maintenance will be assigned to Ringway, a subsidiary of Eurovia, itself a subsidiary of Vinci. Work will start in January 2013.