Birmingham City Council has announced Amey as the preferred bidder for its £2.7bn highways maintenance and management private finance initiative (PFI) contract.

The contract, a substantial boost for the region, will increase employment and make a real difference to the local highway infrastructure. More than 300 jobs will be created in the city; with a further 300 staff likely to transfer from Birmingham City Council to work on the project with Amey following financial close of the contract.

The contract will give Amey responsibility for improving and maintaining Birmingham's highways infrastructure – including 2,500 KM of road network, nearly 100,000 street lights, as well as over 850 highway structures and bridges across the city.

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There will be a significant investment in the first five years to remove the backlog of work and increase standards, with higher expenditure for a further 20 years to maintain the city’s highway infrastructure at this improved standard. Residents should see improvements in the city as early as next year and Amey plans to invite members of the public to give their views on highway maintenance related priorities they want to focus on in their constituency.

Cllr Len Gregory, Cabinet Member, said: "The City Council is leading the way with this pathfinder project that will provide a significant capital investment in our roads. The process to reach a Preferred Bidder appointment has rightly been a detailed one. We received two very good bids and these have been evaluated thoroughly. We believe Amey can help the City Council deliver this significant investment in the highway and give Birmingham the improved highway network it deserves.

"Our next steps will be to work with Amey to finalise the contract details. After the contract is signed, we will continue to work closely together to draw up detailed implementation plans, with the intention of commencing work in April 2010."

(CD/KMcA)