Kent to get £1bn road scheme

Exclusive by Carol Millett



A massive £1bn design, build, finance and operate highways scheme in Kent is in the pipeline. The scheme will see three major DBFO road contracts, a bypass, and the term maintenance contract for the whole of Kent rolled into one massive 30-year package.

The three DBFO contracts combined in the package are the £79m A249 Iwade-Queenborough improvement, the £38m A2/A282 Dartford improvement and the £35m A2 Bean-Cobham phase 2. The A21 Lamberhurst bypass is also thrown in along with the £25m a year super agency contract for area four, which encompasses all of Kent's trunk road and motorway maintenance.

The scheme is now awaiting ministerial approval and could be announced as early as July, as part of the Government's three year spending review. It will signify a major sea change in policy and will be the first DBFO to be given the green light since the Government cancelled six DBFOs in 1997.

A senior Highways Agency official told Contract Journal: "We have recommended to ministers that the three DBFOs be combined into a single DBFO and managing agent contract, which would include the maintenance work for the area.

"It is an opportunity to try out a new form of contract which would provide sufficient capital works up front to motivate people to take on the maintenance as well. Why set up three tender processes when we can combine them into one?"

The contract will allow the Highways Agency to trial a hybrid version of the privately financed managing agent contract (PFMAC) which was proposed as an alternative to the super agency contract in the Highways Agency's recent consultation paper Paving the way.

"Maintenance-only PFIs (private finance initiatives) are not popular, which is why we are hoping to combine the work with a DBFO contract," said the HA official.