Council close to finalising PFI deal

By Ross Findon

Tuesday, August 14, 2012

 

ALMOST £500 million will be made available to the Isle of Wight Council by government for the highways PFI, according to the Department of Transport.

In a draft letter, which has been included in papers ahead of next week’s Isle of Wight Council cabinet meeting, the DoT said: "This note confirms that the Isle of Wight Council Highways Maintenance PFI project can proceed to financial close.

"It also confirms that if the transaction is entered into on the basis set out in the final business case, the Department for Transport will issue the authority with a final approval letter for an annual grant allocation up to a maximum of £19.8m or a total lifetime cost of up to £487m."

The Isle of Wight Council contribution is estimated to be about £7m a year, the equivalent to £175m over the 25 year contract.

It is expected that 65 Isle of Wight Council highways staff will transfer to work for Vinci Concessions as part of the deal.

The cabinet is due to approve the PFI appointment on Tuesday and it is expected to be endorsed at an extraordinary meeting of the full council the following day.

Reporter: ross.findon@iwcp.co.uk

Comments

Log-in or register to comment on this story.

By ticking "Remember me" you agree to a cookie being stored on your computer - no personal data is shared.

Forgotten your password?

Log-in to Report

by Graeme Egerton

16th August 2012, at 10:47:00

Lol at the censorship!

Log-in to Report

by Graeme Egerton

16th August 2012, at 10:45:54

David makes a very good point. Is now an ideal time to also look at accident blackspots such as the Fighting ****s crossroads and investigate whether it's speed or the layout that are the cause. Or both. I think a roundabout could help, but a "proper" one that encourages motorists to slow down and observe. Mini roundabouts are worse than useless. Either people fly through or over them or sit there looking at each other!

Log-in to Report

by David Howarth

16th August 2012, at 06:37:28

Now is the time to review speed limits on the Island. Every week we see serious accidents and too many deaths. New traffic signs will be installed as part of the PFI agreement,so let's lower speed limits now. The new flat roads will encourage speeding as some people will use these as a racetrack.

Log-in to Report

by Kevin Barclay-Jay

14th August 2012, at 20:13:08

this awful council doesn't have £7million a year to pay to this every year. They only ever averaged £3.5 million a year on the roads, the rest of the money being used to sure up other causes which must now be sold off to finance our roads ( privatisation of IOW Care facilities)

Take it this means thay have stopped spreading the 'untruth' that this is all a grant and there is nothing to pay back....shame on them

Log-in to Report

by sidney barton

14th August 2012, at 18:40:51

WOW. Does this mean in 25years time that there will be no potholes.? are the council engaging a PROPER ROAD ENGINEERING COMPANY THAT USE GENUINE HIGHWAYS CONSTRUCTION MATERIALS that doesnt melt or crumble in a heatwave or sub zero canditions??? lets wait and see.

Log-in to Report

by Mike Crowe

14th August 2012, at 16:59:44

Oh dear :-((

and just what sort of c o c k up will come out of this?

What tales of doom and gloom in time to come?

TWENTY FIVE YEARS!!!!! My word that's a lot of back pockets to be filled.

BTW, can someone please tell me why Shanklin High Street HAS to have these road works ............ wait a minute, has anyone actually seen anyone W.O.R.K.I.N.G.? ................ anyway, why do these "works" HAVE to be done in the Summ...... (stupid word) ..... August when the Island is flat out on welcoming tourists?

(I feel a statement coming from Captain Mainwairing)

Any views or opinions presented in the comments above are solely those of the author and do not represent those of the Isle of Wight County Press.

Facebook Icon Twitter Icon Delicious Icon

More News

Most Read

  1. Tributes paid after cliff death

    Wednesday, May 22, 2013

  2. Dredger stuck on sandbank

    Tuesday, May 21, 2013

  3. Desalination plan for the Island

    Tuesday, May 21, 2013

  4. Awards for Isle of Wight beaches

    Wednesday, May 22, 2013

  5. Free school gets government go-ahead

    Wednesday, May 22, 2013