Transport Scotland finalise £500m new M8 deal
Transport Scotland has announced that the £500m deal to construct the new M8 and make improvements to the M73 and M74 was officially finalised on Thursday 20th February.
The contract, which includes the operation and maintenance of the project roads over 30 years, has been awarded to Scottish Roads Partnership (SRP), a consortium employing a construction joint venture of Ferrovial Agroman and Lagan.
The deal represents the first roads infrastructure scheme and the largest contract to be awarded as part of the Scottish Government’s £2.5 billion Non-Profit Distributing (NPD) model, helping to deliver economies of scale and efficiencies for the public purse.
Transport Minister, Keith Brown, said: “This marks a significant milestone in the timeline of what is a major transport infrastructure project for Scotland. Not only will these works vastly improve connectivity across Scotland’s Central Belt, the project will deliver far reaching benefits to the wider Scottish economy.
“We’ll see the creation of hundreds of new jobs which will leave a lasting legacy of a highly-skilled workforce, bolstering Scotland’s construction industry. In addition, the project will act as a catalyst to attract significant inward investment and stimulate continued growth of our business communities.
“The Scottish Government is committed to delivering this £500m infrastructure improvement project to benefit the people of Scotland. The significant interest in the NPD model used to finance the project reinforces the confidence we have seen from the international investor community in Scotland’s economy.”
William James Haughey, Chairman of SRP, said: “Scottish Roads Partnership is delighted to achieve financial close and reach this key milestone in the project. We look forward to using our infrastructure design, build, financing and operations expertise to deliver these important infrastructure improvements, whilst ensuring we provide best value, bringing economic growth and employment to Scotland, as well as benefits to road users.”
Funding for the project will come from the European Investment Bank (EIB) and a group of investors managed by Allianz Global Investors, one of the world’s leading integrated financial services providers.
SRP’s construction contractor - a joint venture of Ferrovial Agroman and Lagan - will be responsible for completing the motorway network between Glasgow and Edinburgh through the construction of a new M8 between Baillieston and Newhouse.
The project also includes work to significantly improve the Raith Interchange and widen key sections of the M8, M73 and M74.
The new roads are expected to be open in Spring 2017. - See more at: http://www.highwaysindustry.com/News/Transport-Scotland-finalise-500m-new-M8-deal-250214#sthash.g6AoQXGI.dpuf