Amey plc, Birmingham City Council reach highways PFI settlement

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Birmingham City Council and Amey plc have concluded the settlement for the termination of Birmingham Highways PFI contract.

As part of the agreement, Amey will continue to provide services until a replacement contractor is found to deliver those services on an interim basis. That interim replacement will be sought as soon as possible but will be in place no later than 1st April 2020. The full retendering of the project to find a permanent replacement contractor will take place during 2020/21.

The City Council has decided to end the contract agreement with Amey amid the increasing report of city's potholed roads and poorly-maintained pavements. A report from the council has accused the company of failing to meet the required road maintenance and not doing urgent repairs of damages. 

Amey, owned by Spanish infrastructure company Ferrovial, will pay GBP217 million (US$245 million) for the termination of the contract, that includes GBP130 million (US$147 million) in cash immediately, with a further GBP15 million (US$17 million) in September and another GBP15 million (US$17 million) three months later. The company has taken over as the highway contractor in 2010 under a 25-year contract worth GBP2.7 billion (US$3 billion). 

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