Why we chose a PFI

Following a Best Value Review in 2000, the Highways service was identified as having:

• deteriorating assets
• rising maintenance costs
• a need for significant capital investment

We considered a number of funding options, including:

• reducing other council services
• prudential borrowing
• a joint venture
• a bond issue

A Private Finance Initiative (PFI) was chosen because it was the only option that provided a grant rather than a loan. The grant was worth £50.3 million per year for 25 years.

Following a procurement process, our Highway Maintenance and Management PFI contract began on 7 June 2010.

Following a settlement in 2019, Kier Highways replaced Amey from April 2020 as an interim provider.

We have proposed extending the interim arrangement until 31 July 2028 while a long-term replacement is procured.

Page last updated: 31 July 2026