Isle of Wight Highways PFI signs
27 September 2012
The £325m Isle of Wight Highways PFI has reached financial close.
The council and the Vinci Ringway consortium have signed the deal, which will see the island’s roads upgraded and maintained over the next 25 years.Vinci and partner Meridiam raised £145m to provide upfront investment in the scheme, which will see the contractor start work on site in April next year.
The funding comprises £17m in equity from the consortium members, plus a £95m bank loan and a £30m subsidy from the concession guarantor. Debt will be provided by BTMU, DZ, KfW and SMBC.
Vinci was only announced as the preferred bidder in May this year, taking just four months to raise the funds to reach financial close. The firm beat off competition from a Colas-led consortium.
The contractor also reached financial close on the Hounslow Highways PFI deal in August this year.
