Amey will now transform Sheffield’s infrastructure over the next 25 years with work starting in August.
Work will involve tackling the backlog of repairs and refurbishing the city’s roads, pavements, bridges and streetscene during the first five years.
The emphasis will then switch to maintenance throughout the remaining 20 years of the contract.
The PFI contract includes the improvement and the ongoing maintenance of the city’s 1,900km of road, 3,300km of footway, 36,000 highway trees, 500 traffic signals, 68,000 street lights, over 18,000 items of street furniture and 12,700 street name plates.
The contract will also include services such as street cleaning, winter gritting and landscape maintenance.
John Mothersole, Chief Executive of Sheffield City Council, said: “Selecting a private contractor to undertake the works that will transform our city’s streets under the highway maintenance PFI contract has been a detailed and rigorous process.
“We shortlisted two high quality bidders who both have an excellent track record and experience in delivering highways regeneration schemes.
“We have made the decision to award the contract to Amey as they offer the best value for money in their proposals for improving and maintaining the city’s highway network to the standard required by the Council.
“We look forward to seeing them deliver for the people of Sheffield.
“This is a once in a lifetime opportunity to refurbish the roads, pavements and streetscene across the whole city and is a priority for the Council.
“We will be working closely with Amey over the coming months to ensure they are fully geared up to begin the improvement works on the highway network later in the year.”
Mel Ewell, Chief Executive for Amey, said: “We look forward to using our knowledge, experience and skills across our multi-faceted organisation to improve the city’s highway infrastructure for the benefit of all those who use it.
“Being announced preferred bidder on this contract is a major achievement and a testament to Amey’s unique tender solution that is designed to transform the city in line with Sheffield City Council’s future vision.”