Author: IW Council Press Office
Roads PFI: Now Two Bidders In The Running
5:16 pm Thursday, 23rd February, 2012, Isle of Wight
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This in from the council, in their own words – Ed
The Isle of Wight Council’s search for a partner to carry out work on the Highways PFI has reached a major milestone.
The authority has now reduced from three to two the number of organisations with which it will continue to negotiate over taking on what will be the biggest engineering project ever undertaken on the Island.
Call For Final Tender stage
The two remaining companies – the Wight Highways Partnership and Vinci – will now be invited to enter the last procurement stage known as Call For Final Tender.
In June, the council will announce which of these two will be named preferred bidder. Details of this proposal will then continue to be refined before the contract to provide the PFI work is signed (Financial Close) in October in advance of work starting in April next year.
Stuart Love, director of economy and environment, said: “All three bidders have formulated imaginative, exciting and highly professional submissions as to how they would undertake the Highways PFI. It was very difficult given the extremely high standards of each bid to narrow the field down to two.
“It was evident that all the companies had a very clear understanding of the Island and what is required to undertake such a huge project here while minimising disruption to residents.
Wide scope
“We were also very impressed with the way all the bidders looked to involve Island residents, groups, organisations and businesses in their plans. The PFI is of much wider scope than just bringing the roads up to standard and the bidders have all detailed plans to maximise business and employment opportunities on the Island through the scheme.”
Under the PFI, the Island will receive £260 million (at its current value) government grant – it is not a loan that has to be paid back – to upgrade not just its road network but also its footways and cycleways, as well as its streetlight and CCTV network. The PFI also includes street cleansing and winter maintenance.
The council’s annual contribution to the PFI will be less than the amount it currently spends on providing the services to be carried out under the new arrangement.
On schedule
News that the process was moving forward to schedule and had attracted quality bids was welcomed by the Isle of Wight’s Chamber of Commerce.
Chief executive Kevin Smith said: “I am sure all those who use the Island’s highways will welcome the news that the PFI scheme, which will bring unprecedented investment to the network, is progressing to schedule. I understand that all the bids demonstrated a clear understanding of the Island and its commerce and are committed to working wherever possible with local companies. This really is a fantastic opportunity for the local economy as well as the travelling public.”
Two remaining bidders details
The two remaining bidders in detail are:
Vinci
Vinci Ringway is a provider of highway maintenance services, geared to providing a comprehensive range of integrated services, from routine and winter maintenance to manufacturing and installation of signs, production and laying of roadmarking materials and specialised surfacings.
Wight Highways Parntership
Wight Highways Partnership (WHP) is lead by Colas and is made up of Colas, Aggregate Industries, Lloyds and URS Scot Wilson. Colas, established in 1922, specialise in delivering sustainable solutions for the design, building and maintenance of the UK’s transport infrastructure.
Image: nicokaiser under a CC BY-SA 2.0 license
The Council is obviously trying to bind its successor by signing off an agreement in October. They know that they haven’t much time left. What’s the point in there actually being elections for a new Council in May 2013? What is it that the electorate are going to be asked to agree at that time?
Mr Pugh?
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Oh, and whilst I can speak for road conditions in general. the surface of Wilton Park Road in Shanklin – a supposedly ‘main road’ and bus route – looks exactly like it did in January 2010. So what has the Council been spending its roads budget on for the past two years, exactly?
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What did they spend it on? A coupla mill ££ on consultants, some buffets at the Yacht Squadron. It’s been a real splurge.
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I think they have spent it on making the Cowes to Newport road like a patchwork quilt!
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This gives the misleading impression that the Island gets a grant for nothing:
“Under the PFI, the Island will receive £260 million (at its current value) government grant – it is not a loan that has to be paid back…”
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When the government, experts in finance and other advisory groups are warning of the pitfalls and potential high costs of PFIin the future, I find it hard to believe a council can be so arrogant and stupid by thinking they know better and simply press on with the scheme regardless.
In my opinion, to ignore expert advice is plain foolishness and can lead to disasters. If this scheme backfires, it could in the future be a disaster for the Island. A risk too far!
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Whoa whoa whoa, for one moment there it sounded like you expected the IW Council to think logically about something and listen to expert advice (that they didn’t pay a fortune to recieve).
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Ah, good to see Portsmouth City Council’s highways PFI contractors, Colas, seem a step nearer their golden goal of getting another PFI deal under their belt.
No mention by our County Hall, though, of their Pompey counterparts being shocked at how costly their PFI has become. I am told they are desperately trying to renegotiate.
And what’s this? Lloyds bank seems to be a chum in the “Wight Highways Partnership”, too. Presumably that’s for when they need to flog off the PFI to some hedge fund or other.
Still, not to worry; Jay Jayasundara has already assured councillors the Isle of Wight will get a share of the profits if that happens.
… Which, if nothing else, confirms that such a risky deal is a possibility. Just like those other PFIs, where such sell-ons have gone south with a bump.
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