Through the future exercise of options rights over minority interests, HICL’s holding is expected to increase to 49.9%. Bilfinger Berger will continue to retain a shareholding in the project.
The M80 DBFO Project, between Stepps and Haggs in Scotland, involves the upgrade of a 10km stretch of the existing M80, as well as a new 8km section of motorway, seven new junctions and 60 additional structures. The project is currently about two years into a three year construction period, with works being performed by a joint venture of Bilfinger Berger UK, Northstone (NI) and John Graham (Dromore).
The project is on schedule to complete construction in December 2011 and will operate under a 30 year concession contract thereafter. Once operational, the project will be paid according to availability. The motorway is to be operated and maintained by BEAR Scotland Ltd under a long-term services agreement. HICL will also take a minority stake in this alongside Bilfinger Berger, Northstone and John Graham.
HICL announced in October that it has signed an agreement with Bilfinger Berger to take over its interests in two UK PFI projects as well as two in Canadian in a deal valued at £65.9m.
The three other interests that HICL is buying from the contractor are:
- a 50% interest in the Kent Schools PFI project
- a 50% interest in the North-West Anthony Henday ring road project currently in construction in Alberta, Canada
- a 50% interest in the Kicking Horse Canyon Transit project in British Columbia, Canada, part of the Trans-Canada Highway.