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The Future of Local Transport Delivery: Birmingham road showBirmingham Council House, 27 September 2011

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Birmingham Highways Maintenance and Management Service

27 September 2011

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Paul O’DayBirmingham City CouncilStreet Services Manager

working in partnership withOverview of Birmingham PFI

• Birmingham – 2nd largest city in the UK with a population of 1 million people

• 500,000 vehicles travel in and out of the city every day

• Birmingham City Council annual budget of over £3.5bn – largest in Europe

• Project value of c£2.7bn over 25 years

• Amey responsible for every street, footway and associated assets in Birmingham

• Financial close - 6 May 2010• Service commencement - 7

June 2010

BIRMINGHAM

London

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Vision for Highways Maintenance and Management in Birmingham

working in partnership withThe visionThe improvements will:• Return the City's

infrastructure to an acceptable standard

• Significantly improve the appearance of the highway network

• Give local people chance to determine priorities and influence choice of materials

• Bring real improvements to the quality of life in local communities

working in partnership withThe visionAlso assists in delivering key council strategies and objectives:•‘Birmingham 2026’ vision to make Birmingham the best place to live, learn, work and visit – a global city with a local heart•Big City Plan - create a world class city centre •Benefit all users, help improve road safety and reduce crime and the fear of crime

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The solution

PFI only way to get extra funding to deal with maintenance backlog:

• £620M PFI credits – a ‘grant’ from central Government

But some concerns still existed:• Issues around change of control• Ring-fences BCC revenue and part of capital budget• Potential concerns from staff and trade unions over TUPE

working in partnership withThe opportunities• Attractive Street Scene Environment• Improved Public Perception and Customer Satisfaction• 25 Years of collaborative Street Scene improvement• Longer term planning and co-ordination with other Street

Scene Projects• Fundamental move to programmed not reactive work• More capacity for a responsive service than at present• Greater network integrity and more safety improvements• Improved Energy Management and Carbon Reduction• Asset Management Certainty – long term sustainable

environment

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How does the PFI work?• Provides contractual arrangement for

the Council to receive defined agreed service

• The Council determines service required and Service Provider determines how service is provided and financed

• Single monthly payment for the whole service with deductions for non-availability of the defined service (Unitary Charge)

• There is budget certainty and budget commitment by the City Council

• There is transfer of risks for all “life cycle” costs to the Service Provider