Kier wins £2.7bn Birmingham highways PFI contract

Once approved by government the new deal will start February 1 2024 and continue until June 2035 covering 2,500km of roadways and 5,000km of footways across the UK’s largest local authority.

Kier has been maintaining Birmingham’s road network since April 2020 on an interim basis after the previous deal with Amey ended in a legal dispute over performance which saw Amey pay £215m to exit the contract early.

The restructured PFI project has been developed to “deliver significant value for money for Birmingham City Council, the Government, and the taxpayer”.

The other bidder in the race was SNC-Lavalin through its Atkins operation.

Natasha Rouse, CEO at Birmingham Highways Ltd, said: “We are delighted to announce Kier as our preferred bidder and would like to thank Atkins for their engagement and professionalism throughout the tender process.

“This announcement is a major milestone for BHL, BCC and all our stakeholders who have been working diligently with us to restructure this contract and provide long-term value and investment for Birmingham. We are excited to move forward with Kier and begin delivering the full scope of investment into Birmingham’s road network from February 2024.”

James Birch, Managing Director of Operations and Maintenance at Kier Transportation, said: “We’re pleased to be appointed as preferred bidder for the Birmingham Highways Ltd contract. We have been delivering maintenance and repair services across the city’s extensive road network since April 2020.

“In that time, we have been committed to providing valuable career opportunities, and working with supply chain partners within the communities we work to add value to the local economy. Appointment to the contract will allow us to continue to deliver a safe and sustainable transport network in Birmingham.”