, the 25 and a half year contract covers the upgrade, repair and maintenance of 510 miles of roads and 476 miles of footpaths.
Construction, operation and maintenance will be assigned to Ringway, a subsidiary of Eurovia, itself a subsidiary of Vinci. These tasks will start in April 2013.
In the first seven years - the core investment period 鈥� 拢20m a year will be spent improving the network.
The project represents an initial investment of around 拢145m. It will be financed by:
- an equity from the project company shareholders around 拢17m
- a bank loan of 拢95m
- a 拢30m subsidy from the council.
The total value of the contract, including repair and maintenance, was initially put at 拢800m but is now estimated to be around 拢730m. Island Roads Services will be paid on the basis of network availability.
This is the second private finance initiative (PFI) contract won by Vinci in the urban roads repair and maintenance sector in the UK, following a deal with the London Borough of Hounslow.
Both Vinci and Meridiam are French companies. Meridiam specialises solely聽in long-term investments in PPP/PFI infrastructure.聽
http://www.theconstructionindex.co.uk/news/view/vinci-ringway-wins-800m-isle-of-wight-highways-pfi
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