Highways Agency - Safe roads, Reliable journeys, Informed travellers

Project Procurement

The Private Finance Initiative for Road Network Development

The Agency has considerable experience in using Private Finance Initiatives (PFI) for the development of parts of the strategic road network. Examples of Highways Agency PFI projects are:

• The M1/A1 Link road near Leeds, which is Britain's largest privately financed motorway project. Under its concession the project management team operates and maintains the road on behalf of the Agency.
• The A13 Thames Gateway, to improve east-west access to the Docklands, Lower Lea Valley and other parts of East London. The contract consists of the operation and maintenance of 13 miles of road.

Project Procurement

The implementation of the Midlands Driver Information System (MDIS) indicated to the Agency the potential benefits of managing traffic and providing traffic information on a national scale. However, this raised the important question of who should be responsible for carrying out these services. The Agency recognised that a suitable service provider would need considerable expertise in traffic management and information services as well as being able to work effectively with the police and local highway authorities and others involved in the management of traffic. It was also essential to ensure that the service provider would offer best value for money for the Agency and for the public.

The TCC Project will require fresh, innovative thinking to successfully address the complex issues involved in managing traffic on the strategic road network. The Agency is keen to draw upon the technical and management skills of the private sector to deliver this project. In order to achieve this, the Agency is committed to procuring the TCC as a Private Finance Initiative project within the overall context of the Government's Public Private Partnership (PPP) policy. Under the PPP approach the responsibility for, and many of the risks associated with delivery of the TCC services, are transferred to the private sector. It is anticipated the private sector will use their skills and build upon their experience to produce a TCC that will meet the Agency's requirements in a more cost-effective and flexible way than could otherwise be achieved.

The Agency carefully considered the way in which its objectives for the service could be achieved. It was decided that the most appropriate method would be to define a quality of service by setting performance targets. The service provider would be allowed, within certain defined limits, to decide how best to carry out the required services in order to meet the performance criteria set by the Agency.

The Agency considers it important that the service provider (the TCC Company) is responsive to the needs of its customers. To achieve this, the TCC Company will be paid according to the quality of the service outputs. The TCC Project will also provide the opportunity for the TCC Company to generate additional revenue by providing up-to-the-minute traffic information to all interested organisations on a non-discriminatory commercial basis. Through this commercial opportunity the TCC Company will support the development of a diverse market for value added transport and driver information services.