The UK city of Birmingham is tendering for a long-term highways maintenance contractor in a deal worth up to US$1.57 billion up to 2035.
The contract, a private finance initiative deal, is one of the largest ever to be tendered by any local UK government. Tenders must be in by March 22 with a winner announced by the end of this year.
The English city has gone out to tender after the collapse of the previous 25-year PFI contract with Amey which was worth around $3.68 billion. That contract was signed in 2010 but legal issues arose and the deal was ended in March 2020. Amey paid $293 million to end the agreement and highways maintenance contractor Kier took over on an interim basis.
The new contractor will take over from Kier in April 2023 cover maintenance across more than 2,500km of roads and 5,000km of pedestrian paths. Apart from roads, maintenance will cover verges, kerbs and cycle tracks, some street lighting, traffic signal replacements and various highway structures.
Winter maintenance such as gritting and the issuing of permits and licences for utilities works, are part of the contract, as is urban traffic control.