Vinci Concessions and Meridiam Infrastructure have finalised the financing for their 50:50 joint venture, 25 year contract to repair and maintain Isle of Wight’s 821km of roads and 767km of footpaths. Also included in the remit are 120 bridges and 12,000 streetlights.

The project represents an initial seven year core investment of around £145M. It will be financed by £17M of equity from project company shareholders; a £95M bank loan from lenders BTMU, KfW IPEX, DZ Bank and SMBC;  and £30M subsidy from concession granter Isle of Wight Council.

Total value of the private finance initiative deal over its 25 years will be around £730M with remuneration from the island's Roads Service reaching the concessionaire in the form of a fee based on network availability.

Construction, operation and maintenance will be assigned to Ringway, a subsidiary of Eurovia which is a subsidiary of Vinci. Work starts in April 2013.

The JV PFI partners have appointed Mouchel as independent certifier for the core investment stage of the project. 

Vinci also recently won the PFI deal to repair and maintain roads for the London Borough of Hounslow.

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