The concession contract, which is worth £150 million, will run for 30 years from financial close, which is anticipated for summer 2008. The design and construction of the new road will be undertaken by Birse Civils, also a wholly owned Balfour Beatty subsidiary. Whole life operation and maintenance services will be provided by Balfour Beatty Infrastructure Services. Balfour Beatty will invest approximately £5 million of equity in the project.
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The concession will comprise the construction of an 8.25km two-way single carriageway road from the M6 Junction 44 to the A595 south west of Carlisle and the management, operation and on-going investment in approximately 150km of other existing roads in Cumbria.
Commenting on the award today, Balfour Beatty Chief Executive, Ian Tyler, said: "We are extremely pleased to be appointed preferred bidder for this important piece of infrastructure which will take traffic away from Carlisle town centre and greatly improve traffic flows around the town and its environs."
The Connect Roads group of companies is Balfour Beatty Capital's specialist vehicle for PPP concessions in the roads and street lighting sector. Its portfolio currently consists of seven concessions in which Balfour Beatty has over £60 million of equity commitment.
(GK/JM)
