Balfour Beatty has reached financial close on a road PPP project in the north of England. The value of the project over its entire life is around £176 million (€205 million; $289 million).
The company’s wholly-owned special purpose subsidiary Connect CNDR has signed a deal with procuring authority Cumbria County Council for the Carlisle Northern Development Route scheme. Connect CNDR is to design and construct an 8.25km two-way single carriageway road from the M6 Junction 44 to the A595 southwest of Carlisle. The project will also comprise the management, operation and ongoing investment in around 150km of other existing roads in the county. The length of the concession is 30 years.
The scheme has benefitted from £158 million of PFI credits from the Department of Transport.
Balfour Beatty is set to invest around £11 million of equity in the project.
The company was part of the Connect Plus consortium, also comprising Skanska, Atkins and Egis Projects, that reached financial close of the £6.2 billion M25 motorway widening PPP in May.