This means that advance works can now begin, ahead of formal contract signing, which is expected next month.
The project will complete the motorway network between Glasgow and Edinburgh by constructing a new M8 between Baillieston and Newhouse. It also includes work to improve the Raith Interchange and widening key sections of the M8, M73 and M74.
The contract, which has a net present value of £500m and includes operation and maintenance of the project roads over 30 years, will be the first roads infrastructure scheme and the largest contract to be awarded as part of the Scottish government’s £2.5bn non-profit distributing (NPD) model.
Transport Scotland said that construction costs were now £105m below original estimates following a competitive dialogue with the preferred contractor, Scot Roads Partnership Project Ltd (SRP). The Ferrovial Agroman/Lagan JV is SRP’s nominated construction contractor.
Funding for the project will come from the European Investment Bank (EIB) and a group of investors managed by Allianz Global Investors.
Scotland’s transport secretary Keith Brown said: “The M8 M73 M74 Motorway Improvements Project is breaking new ground, which is great news for Scotland and great news for the jobs market. It is the first UK roads project involving bond finance since the global financial crisis in 2008. It is also the largest NPD project to reach this stage and demonstrates confidence from the international investor community in the NPD model and that Scotland’s infrastructure is seen as a viable and desirable long-term investment.
"This project shows that this NPD procurement process has driven down costs - around £105m in this case – and will continue to deliver long-term benefits for the taxpayer.
“It is also very good news for the Aberdeen Western Peripheral Route / Balmedie to Tipperty project, which is currently being tendered and is critical to ensuring continued economic growth in the north east.”
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