Sheffield highway PFI closes
Over a 25-year contract Amey will deliver one of the biggest highways projects in the country, providing improvements to support the council’s ongoing plans for the regeneration of the city.
The private partner will be responsible for bringing Sheffield’s highway network up to a high standard within the first five years of the contract and then maintaining that standard for the remaining 20 years of the contract.
The project is supported by the Department for Transport who have agreed to provide an investment totalling £1.2bn over the life of the contract. Lloyds Bank acted as the lead MLA and documentation bank. The project’s financing comprises debt of £212m and capital contributions from Sheffield City Council of £135m. Lloyds' debt ticket was £56m.
Mel Ewell, chief executive at Amey said: "We’re pleased that we’ve successfully reached financial close on this contract. Securing the funding required to enable us to improve and then maintain the standard of Sheffield’s highway network is a major achievement in this challenging financial market".
There will be a significant investment in the first five years known as the ‘core investment period’ when the majority of the improvements works will be carried out. Amey will also provide street cleaning, grounds and tree maintenance and carry out all winter maintenance duties.