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Work can now begin in next April, with the bulk of the Island’s roads upgraded within the first seven years.
Vinci subsidiary Ringway will manage and maintain more than 497 miles of highways, over 12,000 street lighting columns and a further 2,000 or more illuminated street furniture items.
The ambitious project will also encompass the Island’s roads, pavements and cycleway network, bridges, retaining walls, CCTV, street lighting, car parks and traffic lights.
The PFI contract is the second won by Vinci following the London Borough of Hounslow’s.
Vinci IOW financing
• an equity from the project company shareholders around £17m,
• a bank loan of £95m with a maximum maturity of 24.5 years
• a subsidy provided by the concession grantor of £30m
The total value of the contract, including repair and maintenance, will be around of £730m. Island Roads Services consortium’s payments will be in the form of a fee based on network availability.
The consortium will also 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.
