PFI: The First Four Design, Build, Finance and Operate Roads Contracts
This report is about the first tranche of privately financed road contracts which were let by the Highways Agency, an executive agency of he Department of Transport, in 1996. It examines the Highways Agency procured the roads, the value for money likely to be obtained from the contracts, and the effectiveness of the Highways Agency's arrangements for managing the contracts. The methodology used in this examination is set out in Appendix 1.
The four road projects were:
Under each of the contracts, the private sector has agreed to build a road meeting the Highways Agency's technical requirements and to operate and maintain it and some existing roads for a period of 30 years. In return the Agency will pay the private sector builder/operator according to the number of vehicle kilometres driven on the road. Road users will not pay directly for using the roads.
The Highways Agency were seeking to let the contracts in such a way that: