Wales launches MIM road

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Wales launches MIM road

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Welsh government has issued a prior information notice (PIN) for the upgrade of the Sections 5 and 6 of the A465 through its new Mutual Investment Model (MIM).

The A465, or Heads of the Valleys road, is one of the key corridors and international gateways for the south Wales economy. It connects the M4 at Neath to Abergavenny and Hereford. It provides links between west Wales and the Midlands, and also links up the northern valleys, supporting regeneration in the communities.

The project involves the design, construction, operation, maintenance and finance of the predominantly on line 17.7km improvement of the A465 trunk road between Dowlais and Hirwaun from 3 lane single carriageway to dual 2 lane carriageway. The scheme includes approximately 2.2km off-line new road construction from Hirwaun to Trewaun; six full movement grade-separated junctions located at Hirwaun, Croesbychan, Baverstock, A470, Prince Charles Hospital, and Dowlais and 111 structures comprising retaining walls, culverts and 35 widened or constructed bridges including 4 large viaducts. The total investment is estimated at £400 million (US$527 million).

The Transport Division of the Department for Economy and Infrastructure intends to conduct a market engagement exercise in October 2017 to inform the scoping, approach to and content of the procurement. The project is expected to be awarded in April 2018 and will be completed in 2020. The prior information notice is available here.

It has already completed section 1 between Abergavenny and Gilwern, section 3 between Brynmawr and Tredegar, and section 4 between Tredegar and Dowlais Top.

The Mutual Investment Model (MIM) is an innovative approach to investment in public infrastructure developed in Wales. The MIM will support additional investment in social and economic infrastructure projects, which might not otherwise have been built due to a scarcity of capital funding.

MIM schemes will see private partners build and maintain public assets. In return, the Welsh government will pay a fee to the private partner, which will cover the cost of construction, maintenance and financing the project. At the end of a specified period of time the asset will be transferred into public ownership.

In February 2017,  the Cabinet Secretary for Finance and Local Government, Mark Drakeford, announced the government’s intention to undertake 3 schemes using the MIM, including the the dualling of the A465. The other two projectas are the Velindre Cancer Centre in Cardiff and the additional investment in Band B of the 21st Century Schools Programme.

As we reported in January 2016, Jacobs Engineering Group was awarded a contract to provide technical advisory services for the upgrade. Other advisors are DLA Piper (legal), PWC (financial), Willis (insurance).

List of country news

Country news

  • September 11, 2017

    HICL, Equitix, NPS complete acquisition of HS1

    A consortium of HICL, Equitix and the South Korean National Pension Service (NPS) have completed the acquisition of the High Speed One (HS1) rail concession in the UK for more than £3 billion ($3.9 billion).

    Read more
  • September 07, 2017

    Transurban prices €500 million bond in the Eurobond Market

    Transurban has announced that Transurban Finance Company Pty Limited, the Transurban Group’s financing vehicle, has priced €500 million (US$596 million) of senior secured 10.5 year notes under its Euro Medium Term Note Programme.

    Read more
  • August 23, 2017

    London borough launches £1.5bn regen JV

    The London Borough of Newham seeks a regeneration partner to enter into a joint venture for a major mixed-used development.

    Read more
  • August 22, 2017

    AMP Capital reaches final close on the AMP Capital Infrastructure Debt Fund III

    AMP Capital has reached final close on the AMP Capital Infrastructure Debt Fund III (IDF III), raising US$2.5 billion for the mezzanine debt strategy, an additional US$800 million in co-investment rights and securing a further US$800 million from investors who want access to its deal capabilities.

    Read more
  • August 08, 2017

    Birmingham launches £1bn Smithfield development scheme

    Birmingham City Council is seeking a private partner to deliver the Birmingham Smithfield development scheme located in the heart of the city centre.

    Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.