Financial close for Scottish road PPP project

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Financial close for Scottish road PPP project

The M8, M73 and M74 motorway improvements PPP project in Scotland reached financial close financed by a group of investors managed by Allianz Global Investors and the European Investment Bank (EIB).

On August 20, 2013, Transport Scotland announced that Scottish Roads Partnership (SRP) - a consortium formed by Amey Ventures Asset Holdings Limited, Cintra Infraestructuras S.A, Meridiam Infrastructure Finance II and SWIP Infrastructure Funds - was selected as preferred bidder for M8 M73 M74 motorway improvements DBFOM.

This contract, with a net present value of £500 million (US$831 million)  and which includes operation and maintenance of the project roads over 30 years, including 3.5 years for construction, is the first roads infrastructure scheme and the largest contract awarded as part of the Scottish Government's £2.5 billion (US$4.1 billion) Non-Profit Distributing (NPD) model.

The estimated investment for the project is £415 million (US$690 million). Construction costs are now £105 million (US$175 million) below original estimates. 

The project will complete the motorway network between Glasgow and Edinburgh by upgrading the A8 Baillieston to Newhouse. It also includes work to improve the Raith Interchange and widening key sections of the M8, M73 and M74. When completed the new section of road will shave up to 18 minutes off journeys at peak times for vehicles using this busy sections of the M8 each day.

The project is currently on track to be completed by Spring 2017.

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