M25 PFI Contract signed

The long-awaited M25 Private Finance Initiative (PFI) scheme has been approved this week. The Highways Agency will agree to pay the Connect Plus consortium, comprising Atkins, Balfour Beatty, Egis Projects and Skanska, £6.2 billion in today’s prices over the next 30 years to maintain the London orbital motorway and add a fourth lane to some sections.

Transport minister Andrew Adonis said: “Today marks a major step forward in increasing the capacity of the M25..The widening schemes, combined with the maintenance and operation of the M25 network for the next 30 years, will reduce congestion, improve journey time reliability and safety and bring benefits to road users.”

Up to 200,000 vehicles a day use the sections of the M25 that will be widened. The work is being phased to reduce the impact on road users and keep as many lanes open as possible.

Under the terms of the contract, the UK's busiest motorway will be widened to four lanes between Junction 23, South Mimms, and junction 16 for Uxbridge. Preparatory work is expected to begin today.

Work is set to be complete by 2012, shortly before the beginning of the London Olympics.