Birm PFI still waiting on Amey payments

Birmingham City Council is still waiting for over £55m in payments from contractor Amey on its highways PFI scheme.

Amey lost the court case against the authority in February this year over the interpretation of the contract, and as such was ordered to pay the £55m plus interest to Amey Birmingham Highways Ltd (ABHL), the special purpose vehicle that is running the contract, and therefore to the council.

A briefing note to councillors on the authority’s audit committee confirmed that the money is still owed, adding that the Supreme Court refused Amey leave to appeal the Court of Appeal decision, meaning that the company has no other route to object to the decision.

“We have also demonstrated conclusively that (i) Amey has no right to retain this money and (ii) any milestones that are certified will only apply from the date that they are certified,” the document said.

A spokesperson for the council added that the authority is “working with all parties to the contract to secure a way forward on the most appropriate basis”.

Amey has been contacted for a response.