Birmingham City Council advertises £2.2bn roads maintenance PFI

Birmingham City Council is inviting firms to bid for a massive PFI contract worth £2.2bn over 25 years to improve, maintain and operate its highway services.

The council is seeking a step change in the condition and management of Birmingham's roads. The aim is to enhance the integration, operation and management of its highway network by bringing in private sector expertise to provide best value and improved services to users.

The contract is due to commence in April 2006 and the council expects an initial investment of around £170m in the first few years to rehabilitate the city's highway network.

Bidders will need to supply three variant pricing schedules specifying how bid prices would be reduced if grounds maintenance, tree works and all street cleansing respectively, were excluded from the contracted services.

The council expects to shortlist four consortia or groups to bid for the deal. Firms have until 30 June to register their interest.

Birmingham City Council is only the second local authority to put its highway maintenance work out to tender under the private finance initiative.

It is following the pioneering footsteps of Portsmouth City Council, which awarded its £500m highways maintenance deal to Colas in February this year, following a protracted bid process that began back in 2001.

Lincolnshire County Council has also expressed interest in the PFI highway maintenance route.