Transport Secretary Patrick McLoughlin opened the Isle of Wight highways PFI headquarters building last week to kick start the £800M venture which formally begins on 1 April.

A joint venture of Vinci Concessions, Meridiam Infrastructure and Ringway won the 25 year deal which is being delivered by new company Island Roads. In a seven year core investment programme Island Roads will bring all highway assets up to standard and will then maintain them for the remaining 18 years of the contract.

Works will begin with the upgrading or replacement of 12,068 streetlights to energy efficient LEDs leading to an estimated reduction in energy costs of 35% in the first five years of installation. Works will also include refurbishment of 803km of rural and urban roads and 209 bridges.

The PFI contract is claimed to be unique in the UK because it has addressed some of the criticisms that have been levelled at PFI deals generally. It has the flexibility to bring about change, negotiate rates and 75% of benefits from any share sale by participating companies are in favour of Isle of Wight Council. 

Island Roads will be following the Island’s ‘Eco Island’ principles particularly with regard to carbon and water footprint consumptions. And it is bound by a lane rental/penalty approach to ensure works are planned to provide minimum disruption to residents and tourists.

Mobilisation director David Gibby from operating company Ringway Island Roads said: “We were delighted that the Secretary of State came to the Isle of Wight to open our fantastic new facility at St Christopher House which will be the centre of our operations on the island. We look forward to services commencing on 1 April and the next 25 years.”

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