Pinsent Masons advises on Major Highways PFI close

At a time when there is significant debate within the UK project finance community about the future shape of infrastructure investments, today (30 August) marks the financial close of another major Highways Maintenance PFI project.

The project, which is being procured by the London Borough of Hounslow, sees a special purpose vehicle of Vinci Concessions and Barclays Infrastructure Fund taking responsibility for a twenty-five year concession to maintain and enhance the highways, streetlighting and structures within the Borough. Operations in the Borough will be undertaken by a special purpose vehicle established by Eurovia subsidiary, Ringway.  

Funding for the project has been provided by BTMU, DZ and KfW banks.

Vinci Concessions PFI Director Phil Jackson said: "We recognise that this is a particularly important project for the Borough and are looking forward to working alongside the Council over the coming months and years." 

Jonathan Hart a Partner in the Projects practice at Pinsent Masons, says:

"Closing this Project with the Vinci-BIF and Ringway teams is an important benchmark for the infrastructure market, having been achieved at a time of significant uncertainty in the PFI market pending the outcome of a government review into funding models. While this project has been relatively unaffected due to the pragmatism of all involved, it is essential that more certainty around PFI is created sooner rather than later."

Pinsent Masons is also advising Vinci and Ringway in relation to the Isle of Wight Highways PFI, which is expected to be reaching financial close shortly.