The M8 M73 M74 Motorway Improvement Project contract has a net present value of £500 million (February 2014), which includes the construction, operation, maintenance and finance of the project roads for over 30 years. This represents a construction cost of £310m, which is significantly below the pre-tender estimate for the construction cost of £415m.
It is the first roads infrastructure scheme and was the largest contract, at the time, to be awarded as part of the Scottish Government’s £2.5 billion Non-Profit Distributing (NPD) model. This helps ensure that public money is being used efficiently.
Following a significant level of international investor interest, funding for the project is being provided by both the European Investment Bank (EIB), and a group of investors managed by Allianz Global Investors, one of the world’s leading integrated financial services providers.
Support for the project
Iain McMillan, CBI Scotland
“The completion of the M8 between Glasgow and Edinburgh has been a long-standing priority for our members.
“Improved connectivity is essential for the success of Scotland's economy and the upgrading of this stretch of motorway is crucial to that success.
“The Scottish Government is to be commended for delivering on this long-desired and much needed infrastructure project.”
David Watt, Executive Director, IoD Scotland
“This is an extremely positive move as it will greatly reduce the travel time between our two largest cities, which in turn will have a positive impact on the Scottish economy.
“It is imperative that we have a world class road link between the two commercial centres to ensure goods and services can be transported quickly and efficiently.
“The long term gain is significant and it will allow Scotland to continue to attract investment and compete on an international stage.”
Chris MacRae, Head of Policy for Scotland, Freight Transport Association
“Upgrading the main motorway connecting Scotland's two most important cities is essential to the efficiency and internal connectivity of Scotland's supply chain.”
Liz Cameron, Chief Executive, Scottish Chambers of Commerce
“Enhancing Scotland’s transport connectivity is essential in order to ensure our economy’s future competitiveness.
“That is why Scottish Chambers of Commerce welcome the investment being made to upgrade the M8’s missing link – the A8 between Baillieston and Newhouse – alongside other essential improvements to the central Scotland motorway network.
“This is a well used piece of our road transport network and the flow of traffic here is crucial not just for the west of Scotland but also for connections to the north, east and south”