The joint venture saw off bids from Colas and Amey, which were also bidding for the £1.2bn scheme to build and maintain roads for 25 years.

Vinci/Ringway has now secured two major highways PFIs after winning London’s Hounslow PFI just two months ago.

Work will begin in April 2013 with the bulk of the Island’s roads upgraded within the first seven years.

The scheme will allow Isle of Wight Council to improve the island’s infrastructure including roads, footways and street lighting.

It includes almost 499 miles of road with 477 miles of footway. The project also includes 12,000 street lights and several bridges.

Ringway, which is part of the Eurovia Group, already works on the Island and has been providing highways winter maintenance since 2009.

The consortium will fund 55 apprentices during the contract and employ local labour and sub-contractors. It will also fund four Isle of Wight students planning to start engineering degrees this year with £1,500 bursaries.

Built into the deal is an agreement that if shares in the contract are sold, the Isle of Wight Council will receive a share of the profits. This is the first time such a clause has been included in a PFI tonight’s meeting was told.

A council spokesman said:  “Now this stage of the process has been reached, the full scope of the project – that involves university bursaries for future civil engineering students, schemes to stabilise highways that suffer ground movement and over 120 schemes to reduce highways flooding – can be detailed.

“At the heart of the PFI project will be the comprehensive upgrade – and maintenance over 25 years – of the Island’s road, footway and cycleway network.”

Also included will be the council’s winter maintenance and roadside verge maintenance programmes as well as its street cleansing operations.