Highways England launches market sounding for US$10 billion former PF2 projects

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Highways England launches market sounding for US$10 billion former PF2 projects

Highways England has published Prior Information Notices (PIN) detailing upcoming market engagement activity for the Lower Thames Crossing and A303 Amesbury to Berwick Down road projects. With a combined total investment of around GBP8 billion (US$10.3 billion), both projects were initially prepared to be developed through public-private partnerships (PPPs).

However, in October 2018 the British government abolished the country's PPP scheme, Private Finance Initiatives (PFI/PF2).

The Lower Thames Crossing project involves the construction of two bored tunnels beneath the River Thames between Gravesend and Tilbury in south-east England, with interconnecting link roads to the M25, A13, and A2. The crossing will feature three lanes in both directions with a maximum speed limit of 70 mph. 

With a total estimated investment of between GBP5.3 and 6.8 billion (US$6.84 and 8.78 billion), it is the largest single road investment project in the UK since the London orbital motorway, the M25, was completed more than 30 years ago. The tunnel section will be the longest road tunnel in the country.

The PIN for the project confirms that it will now be delivered through traditional procurement strategies, with design, construction, information technology services, archaeology, logistics works etc. to be procured separately. It is anticipated that initial market engagement for the enabling works and roads and tunnels packaging will commence in Q1 2019 and further engagement will follow in the near future.

The PIN for the A303 project, which involves the construction of a new dual, two-lane carriageway approximately 13km long between Amesbury and Berwick Down (southern England) passing through the Stonehenge World Heritage Site, is more ambiguous. It discloses that Highways England is planning to hold supplier engagement events such as an interactive webinar session in early 2019 and an Industry Day prior to the launch of the procurement exercise, but does not shed any light on the procurement model.

Highways England plans to publish a contract notice for the A303 on 31 July 2019. A contract notice for the Lower Thames Crossing, presumably the largest roads and tunnels package, is scheduled to be published on 31 March 2020.

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