Rubio, F J (2018) Maintaining and widening the M25 motorway, UK: A private finance case study. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 171(5), pp. 197-206. ISSN 17514304
Abstract
The M25 motorway around London, UK, is one of the busiest in Europe. The current contract for maintaining the route, including widening some sections, was awarded in 2009 under a private finance initiative project amid the global financial crisis. This paper reports on the initial funding challenges for the design, build, finance and operate contract under a traditional private financing arrangement within a constrained financial market. The concerns of the UK's National Audit Office are discussed together with the approach taken by financial advisors, Highways England and the preferred bidder, Connect Plus. After studying recent developments, it is argued that private financing is an attractive procurement route for infrastructure. The lessons learned and benefits of this financial structure are outlined at a time of decline in projects procured under private finance, particularly after the UK government's latest infrastructure programme ends in 2021.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | economics and finance; private finance initiatives; procurement |
| Index terms: | London, bidder, funding, private finance, audit, England, Europe, case study, lessons learned, financing, private finance initiative, programme, global financial crisis |
| Subjects: | bidding, contractual arrangements, economic analysis, physical geography and landforms, economic concepts, Geography, data collection methods, performance measurement, professional development, project controls |
| Topics: | Quality Management, Procurement, Geographical Context, Time Control, International Construction, Information Management, Research Practice, Business Strategy |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here