Statement re Amey Appointed Preferred Bidder
04 Abril 2003 - 1:01AM
UK Regulatory
FOR IMMEDIATE RELEASE
4 APRIL 2003
AMEY APPOINTED PREFERRED BIDDER FOR �120M STREET LIGHTING CONTRACT FOR
WAKEFIELD COUNCIL
Amey plc, the support services specialist, and its consortium partner Laing
Investments Ltd, have been appointed preferred bidder for Wakefield District
Council's public and street lighting PFI. The value of the contract is
projected to be �120 million over 25 years, of which Amey's share is estimated
at approximately �90 million. The project, now under final negotiation, is
expected to commence in the summer of 2003.
This is the first joint project to reach preferred bidder stage since the
co-operation agreement with Laing Investments was announced in January 2003.
Amey will be working in partnership with Laing Roads, a division of Laing
Investments, the principal operating division of John Laing plc.
Under the terms of the contract, Amey Highways Ltd will assume responsibility
for the management and implementation of the replacement programme and ongoing
repair and maintenance of the District Council's entire lighting stock on
behalf of the consortium. The stock of some 40,700 street lights was identified
in a Best Value Review in 2000 as being in need of investment. The programme is
designed to replace and upgrade 30,000 life-expired lighting stock during the
first five years.
The Wakefield project is the second street lighting contract that Amey has won
under PFI since the closure of the Walsall Metropolitan Borough Council's
public lighting PFI contract in March last year.
Mel Ewell, Amey's Chief Executive, said:
"We are delighted to have been chosen as the preferred partner for Wakefield's
public and street lighting PFI. Our service management skills and PFI expertise
represent a strong offer and we are confident that we will significantly
improve services for the benefit of Wakefield's community. We are well
positioned to take advantage of the growing public lighting market and look
forward to further strengthening our position."
Tony Reeves, Wakefield Council's Deputy Chief Executive, said:
"This is a big step forward for the District and one we confidently expect will
bring about great improvements. The PFI Project, which brings in additional
financial support from the private sector, will help us to make our streets
safer at night, with reduced fear of crime and fewer road accidents. This will
be a major contribution to the community safety agenda which is one of the
Council's top priorities. We are looking forward to working in partnership with
the Amey-Laing team to achieve these benefits and to do what we as a Council
have been unable to do from our own budgets."
Derek Potts, Laing Road's Managing Director, said:
"As an investor we are delighted to be involved in this project which will
bring many benefits to the residents of Wakefield. Our on-going partnership
with Amey in street lighting and highway maintenance operations will enable our
respective strengths to be applied to the benefit of the Wakefield project and
future street lighting developments."
-END-
For further information please contact:
Jane Beckley, Head of Communications Director, Amey: T: 01252 533809
M: 07788 580591
Nadja Vetter, CardewChancery T: 020 7930 0777
Notes to editors
1. Amey is a provider of integrated business support services to the public
and private sector and is working closely with central and local government
to deliver strategic education, health, transport and defence
projects. Services range from managing large-scale transportation
infrastructure to delivering professional and back office services.
2. The Wakefield project means that Amey is now responsible for the management
and/or maintenance of around half a million lighting units, making it one
of the largest street lighting service providers in the UK. Amey already
provides highway services to 11 Local Authorities in England and Scotland,
serving more than 3.2 million people.
3. Amey recently won five of the Highways Agency's 'Super Area' contracts to
manage and maintain motorways and trunk roads in England, all of which
include street lighting. It also manages and maintains all motorways and
primary routes in South-West and South-East Scotland.
4. Amey's advisers include CMS Cameron McKenna and Masons (legal) and Deloitte
and Touche (financial). Atkins Odlin will provide design services for the
new installations.
5. Laing Roads is a subsidiary of John Laing plc, one of the UK's major
corporate developers and investors in public infrastructure through the
private finance initiative. John Laing plc holds a large and expanding
portfolio of investments under three main subsidiaries: Laing Roads, Laing
Rail and Equion. The investments span transport, health, education and
special purpose government facilities. The majority of the investments are
within the UK though a number are in continental Europe and the Far East
and Pacific regions. Laing Roads has a portfolio of five projects
including the M40, A55, A130, Tieyhti� Nelostie (Finland's first privately
financed infrastructure project) and the Second Severn River Crossing. A
Laing Investments consortium has recently been appointed preferred bidder
for the E39 in Norway, the county's first project in their PPP roads
programme.
6. The 4ps (Public Private Partnership Programme), a local government agency
set up to assist local authorities develop and procure PPP and PFI
projects, believes that investment of up to �4 billion is needed over the
period of the Government's ten year transport plan to reverse the
deterioration in the street lighting infrastructure. David Locke,
Executive at the 4ps said: "The transport minister announced on 17 October
a new bidding process for local authority PFI street lighting projects,
with a first year allocation of �300 million for English local authorities
and a promise of more to follow, together with a further �85 million over
three years for London Boroughs. The 4ps welcomes the new bidding process
and the new allocation of funding support for the street lighting service,
and believes that the new arrangements announced by the Minister will allow
local authorities to address the substantial backlog of investment in the
street lighting service."
END