Sheffield Highways Maintenance
Location: Sheffield, UK
LeighFisher is the lenders technical Advisor for the Sheffield Highways Maintenance Project, which is a UK pathfinder 25-year Private Finance Initiative concession to upgrade, operate, and maintain the 2,000-kilometer highway network of the City of Sheffield. Our role started at the beginning of the bid process, and has continued into the project execution phase.
The $3.2 billion project is one of the biggest highway projects in the UK and provides a major boost to the City’s continuing plans for the regeneration of the City and for providing Sheffield residents with the improved roads, pavements, bridges, and street scene they deserve. It also demonstrates continuing confidence in the use of private finance for funding road maintenance projects with our investment appraisal techniques proving invaluable.
The concession requirement is to deliver a step-change in the condition of the City’s highways, associated structures, and streetlighting within 5 years from the start of the contract, and to sustain that improvement over the remainder of the contract. The concessionaire is also required to provide comprehensive street scene maintenance over the concession period.
For delivery of this maintenance, the concessionaire earns a network-condition-related annual fee, subject to performance adjustments in the event of failure to meet stipulated standards of performance (e.g., timely snow clearance, illegal dumping clean-up, or other unplanned incident response).
Our role during the bid phase of the project, which included road technical due diligence, has been to support prospective lenders in their assessment of concessionaire delivery competence and in their participation in negotiating the concession and subcontract terms so that they may commit funds with confidence to the project within their lending criteria.
Our current role (from mid-2012) is to monitor actual and prospective delivery of the project so as to trigger and support the operation of lenders' controls.
- $3.2 billion flagship highways project – one of the largest in the UK
- We helped to secure funding in a challenging financial environment by providing technical advisory services to the funders
- Through our continuing involvement, we are committed to supporting the improvement of Sheffield’s highway network for the benefit of City residents