AWPR/Balmedie-Tipperty funding agreement reached as bidders are shortlisted

A funding agreement has been reached for the AWPR/Balmedie-Tipperty, capping payments for the Councils.

The funding agreement, which sees the Scottish Government confirm its 81% share of £745 million costs, will ensure Aberdeen City Council and Aberdeenshire Council’s 9.5% share is capped at £75 million each.

The news of this arrangement comes on the same day a shortlist of construction firms bidding for the scheme contract is formally published. The consortia Transport Scotland are inviting to take part in competitive dialogue are:

Granite City: Macquarie Capital: Vialia
North East Roads Partnership: Cintra Infrastructures SA; Bilfinger Project Investments GmbH
Scotia Roads Group: BAM PPP; Costain; Iridium; Sir Robert McAlpine Capital
Connect Roads: Balfour Beatty Investments; Carillion Private Finance; Galliford Try

Transport Minister Keith Brown said:

“The benefits of the AWPR and Balmedie are clear, with the scheme expected to deliver 14,200 jobs in the north east and boosting the economy to the tune of £6 billion over the next 30 years. After years of delay, we should not underplay the need to ensure the pace in delivering this vital project continues.

“These two latest developments are great news for everyone involved in the Aberdeen Western Peripheral Route. They clearly demonstrate the welcome progress made, in a relatively short period of time, since the Supreme Court dismissed the appeal last October.

“The Industry Day held in January this year received high interest from some of the world’s leading construction companies with over 150 delegates from 60 different organisations.

“The AWPR will improve journey times, reduce congestion and help open up wider markets for the regionally and nationally important economy of the north-east delivering benefits of both local and national importance.

“Alongside FRC and the M8 M73 M74 Motorway improvements, the AWPR/B-T project is one of a number of major transport projects being taken forward by the Scottish Government.”

Speaking about the bidder shortlist Leader of Aberdeenshire Council Cllr Jim Gifford said:

“I am very pleased to hear that the approved bidders have been selected.

“Clearly a lot of work will have gone into these bids for what is a project of huge importance to the north-east. I look forward to the outcome of the tender process.”

Aberdeen City Council Finance Convener Willie Young said:

"There's been huge interest both nationwide and internationally in the AWPR contract.

“I'm very pleased that these major organisations have come forward and bid for the contract, allowing us to move forward to selecting a contractor and beginning work on the route."

The project is being delivered under an NPD model, ensuring best value for taxpayers money. The successful contractor will be required to deliver on the job training for apprentices and local employment opportunities.

The Contract is expected to be awarded and work start in 2014, with construction completion expected in 2018.

NOTES TO EDITORS

1. Transport Scotland is the Scottish Government’s national transport agency responsible for; aviation, bus, freight and taxi policy; coordinating the National Transport Strategy for Scotland; ferries, ports and harbours; impartial travel services; liaising with regional transport partnerships, including monitoring of funding; local roads policy; major public transport projects; national concessionary travel schemes; rail and trunk road networks; sustainable transport, road safety and accessibility; the Blue Badge Scheme. Transport Scotland is an Executive agency accountable to Scottish Ministers. http://www.transportscotland.gov.uk/