Christmas cheer as Aberdeen Roads signs off on £550M PPP

Consortium of Balfour Beatty, Carillion and Galliford Try have reached financial close on Aberdeen Western bypass.

Connect Roads, now known as Aberdeen Roads has closed the deal for one of Scotland’s biggest transport infrastructure investments. The consortium which is made up of Balfour Beatty, Carillion and Galliford Try has reached financial close on the scheme to improve roads around Aberdeen and the North East of Scotland.

MEANWHILE IN ENGLAND: The Highways Agency has decided to rebid Asset Support Contract deals for Areas 4 and 12 because of “concern arising from elements of the pricing of the bids that in the view of the Agency will not support the delivery of the contract over the next five years.” Existing incumbents Balfour Beatty/Mott MacDonald on Area 4 and Aone+ on area 12 will have their managing agent contracts extended for 18 months while the ASC bids are resolved.

The consortium was selected as preferred bidder to design, build, finance and operate the £550M Aberdeen Western Peripheral Route / Balmedie-Tipperty project in June this year. The clients are Transport Scotland, Aberdeen City Council and Aberdeenshire Council.

A joint venture of Atkins and CH2M HILL has also officially appointed as designer for the project.

Construction will be undertaken by Balfour Beatty’s UK construction business, Carillion and Galliford Try in an equal joint venture. Once the construction is complete, the trunk road assets will be managed by Aberdeen Roads Limited and maintained by Balfour Beatty on its behalf for 30 years.

Work commences immediately and is expected to be completed in winter 2017. The project includes designing and constructing 58 kilometres of new dual carriageway, 40 kilometres of new side roads, 30 kilometres of access tracks and more than 100 new structures, including two significant focal point bridges over the rivers Dee and Don.

The project is being procured under the Scottish Government’s Non-Profit Distributing (NPD) model.

David Jenkins Interim managing director of Atkins’ UK Highways & Transportation business said: “Aberdeen is of strategic importance to Scotland as the hub for our oil and gas industries so it is vital that is has the transport connections it needs for business and local travel. This project will help modernise Scotland’s transport system, ease congestion and provide more reliable journey times for motorists.

James Rowntree, managing director for Transportation, Europe at CH2M HILL, said: "The Aberdeen Western Peripheral Route / Balmedie to Tipperty project is a great example of the commitment the Scottish Government is taking to investing in its transport infrastructure. This scheme is of great strategic importance to this region, and Scotland on a broader level, which will provide a great boost for the regional economies it connects up.”