Amey, Lagan and Ferrovial Agroman consortium achieves financial close for DBFO road project in Northern Ireland

The Amey, Lagan and Ferrovial Agroman (ALF) consortium today achieved Financial Close for the Department for Regional Development Roads Service’s DBFO (Design Build Finance Operate) Package 2 contract. Amey and Lagan have created a special purpose project company Amey Lagan Roads Limited to deliver the overall DBFO Contract.

The 30-year £250 million project has already commenced construction in a series of Pre Commencement Works. Within the consortium, the construction work will be undertaken by a Joint Venture between Ferrovial Agroman Ireland and Lagan Construction. Amey will be responsible for Operations and Maintenance (O&M) work, which will commence in the New Year.

The project forms part of Northern Ireland’s £18 billion investment strategy, ‘Building a Better Future’. The aim of this strategy is to make Northern Ireland a better place to ‘live, work, learn and grow’. Under the scheme, the region’s schools, roads, water, waste, health and office infrastructure will all be improved over the next decade.

As part of this development programme, the Northern Ireland Department for Regional Development identified two packages of work to improve the strategic road network across Northern Ireland. These will be delivered as Public Private Partnerships (PPPs).

The first package includes the M1 / Westlink scheme, awarded in February this year. Within the second package of works, the consortium will:

• - Upgrade the existing A1, which includes the provision of a new outer by-pass of the existing dual carriageway at Newry, between Beech Hill and Cloghogue.
• - Provide a new dual carriageway for the A4 from Dungannon to Ballygawley.
• - Operate and maintain the entire 125km length of road for the 30-year contract period, including all lifecycle and major maintenance of pavement and structures.

The consortium believes its selection has been significantly influenced by the combined strengths of its members. All three members have extensive experience of road widening and highways maintenance schemes:

• - Amey is at the forefront of highway services provision in the UK, delivering integrated highway design, management and maintenance services to the Highways Agency and Scottish Executive. Amey currently manages and maintains over 27 per cent of the highways network in England and 60 percent in Scotland.
• - Lagan has an international track record for delivering major roads infrastructure projects throughout Ireland (more recently with DirectRoute in the delivery of the Fermoy Bypass project and the Limerick Tunnel PPP Project) and overseas and is one of the largest private construction companies based in the region.
• - Ferrovial Agromán has over 80 years of experience in construction with a presence in more than 50 countries. Ferrovial Agroman has successfully delivered Ireland’s two largest highways projects and is committed to working with local partners to understand the nuances of the markets they operate in.

Gerry Cawley, Project Director for Amey Lagan Roads and Managing Director of Lagan Projects Ltd said: “This is a very prestigious project which will have a significant impact on the infrastructure of Northern Ireland. Amey Lagan Roads is very pleased to be involved in the delivery of this project “.

Chris Webster, Group Director Amey plc said: “Winning this contract is a fantastic success for the Amey, Lagan and Ferrovial Agroman consortium; it presents Amey and the other consortium members with the opportunity to demonstrate the strength of our partnership network. We look forward to working with our sister company Ferrovial Agroman and building on and combining our individual company strengths to produce the best possible outcome for the Northern Ireland Roads Service.”

For further information, quotes or interviews please contact Denise Johnstone on (+44 (0) 151 342 0019 or denise.johnstone@di-pr.com) or Charlotte Crutchley, Amey Press Office (+44 (0) 20 7344 1260 or press.office@amey.co.uk).

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