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Skanska gets in fast lane for M25 work
16:29 07 Apr 2005
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Skanska is trying to manoeuvre itself to the head of the queue of
bidders for the £1.7bn DBFO project to upgrade the entire
M25.
Chief executive David Fison said: "We're a long way down the path. We've been working on it for the past year. We have a strong balance sheet, so we're relaxed about the financial side of things.
"A really big player could do the construction work on its own, but I'd prefer to share with one other," Fison said.
He declined to name Skanska's partner. The two would form an SPV. The equity and financing would be handed to Skanska BOT, which specialises in funding infrastructure projects worldwide. There is to be no consultancy in the Skanska SPV: the plan is simply to pay for all the necessary design work.
The M25 project is expected to be advertised in the OJEU in three months' time. "It's been under debate for a long time," Fison said.
"Views centred on the two main issues: operational considerations and financial liabilities. What the Highways Agency (HA) wants is a more efficient orbital motorway, and a policy of piecemeal building and maintenance does not fit within the concept of having the motorway operating as a whole.
"You want to phase work to cause the minimum of delays and to offer full communication to the occupants of cars," said Fison.
The HA will draw up shortlists of two bidders for each of the M25 and the M1 widening projects (the latter is also worth at least £1.7bn).
The HA will choose two winners by asking the shortlisted bidders to price and design a £400m stretch of the motorways. The HA will fund this trial.
Contractors are waiting to submit PQQs for the contracts, which will involve a 100% value submission with no cost elements. This will help whittle down the list of interested parties to four. These will then be asked to provide a detailed value submission for the schemes before the final two preferred bidders are chosen.
Financial close and a start on the sites are not expected until 2008 due to the scale of the projects.
Because of the size of the contracts, it is thought only the likes of Amec, Amey, Balfour Beatty, and Skanska will be able to lead bids.
CJ has also learnt that the HA is to conduct a separate competition for the financial backers of the schemes, which will run in parallel with the construction procurement.
Chief executive David Fison said: "We're a long way down the path. We've been working on it for the past year. We have a strong balance sheet, so we're relaxed about the financial side of things.
"A really big player could do the construction work on its own, but I'd prefer to share with one other," Fison said.
He declined to name Skanska's partner. The two would form an SPV. The equity and financing would be handed to Skanska BOT, which specialises in funding infrastructure projects worldwide. There is to be no consultancy in the Skanska SPV: the plan is simply to pay for all the necessary design work.
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The M25 project is expected to be advertised in the OJEU in three months' time. "It's been under debate for a long time," Fison said.
"Views centred on the two main issues: operational considerations and financial liabilities. What the Highways Agency (HA) wants is a more efficient orbital motorway, and a policy of piecemeal building and maintenance does not fit within the concept of having the motorway operating as a whole.
"You want to phase work to cause the minimum of delays and to offer full communication to the occupants of cars," said Fison.
The HA will draw up shortlists of two bidders for each of the M25 and the M1 widening projects (the latter is also worth at least £1.7bn).
The HA will choose two winners by asking the shortlisted bidders to price and design a £400m stretch of the motorways. The HA will fund this trial.
Contractors are waiting to submit PQQs for the contracts, which will involve a 100% value submission with no cost elements. This will help whittle down the list of interested parties to four. These will then be asked to provide a detailed value submission for the schemes before the final two preferred bidders are chosen.
Financial close and a start on the sites are not expected until 2008 due to the scale of the projects.
Because of the size of the contracts, it is thought only the likes of Amec, Amey, Balfour Beatty, and Skanska will be able to lead bids.
CJ has also learnt that the HA is to conduct a separate competition for the financial backers of the schemes, which will run in parallel with the construction procurement.
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