M25 Widening Scheme

The Highways Agency intends to widen sections of the M25 under one £1.5bn contract on a DBFO basis.

The project involves:

- the operation and (routine, major and winter) maintenance of the M25 London orbital motorway and the intersecting radial trunkroads within the limits of the Highways Agency's Area 5 (together, approx. 400km);

- the operation and (routine, major and winter) maintenance of the A282 Dartford-Thurrock Crossings;

- the design and construction of the widening of approx. 102km of the M25 London orbital motorway; maintenance and refurbishment work on the Bell Common and Hatfield tunnels;

- in respect of the Dartford Tunnels, implementing measures to meet the requirements of EU Directive 2004/54/EC: Minimum Safety Requirements for Tunnels in the Trans-European Network (the "Tunnels Directive");

- further network improvement and safety schemes to the M25, intersecting radial trunk roads and A282 Dartford-Thurrock Crossings (together, the Project Road) over the term of the contract;

- and the collection of tolls (on behalf of government) on the A282 Dartford-Thurrock Crossings. While initially intended to be procured as four individual projects, the Highways Agency is launching one contract for UK’s largest PPP road transaction for better cost effectiveness.

Key Dates

Pre-Launch: 29 Mar 2005

Transaction Launch: 08 Nov 2005

Prequalified Proponents: 17 Mar 2006

• Amey plc (Amey Team)
• Laing O'Rourke (Amey Team)
• Ferrovial SA (Amey Team)
• Fluor (CircuLON)
• Transurban (CircuLON)
• Balfour Beatty (Connect Plus)
• Skanska ID (Connect Plus)
• Atkins (Connect Plus)
• EGIS Projects (Connect Plus)
• VINCI (Flow)
• John Laing (Flow)
• Carillion (Flow)
• Costain (Flow)
• Macquarie Capital (Macquarie Motorway Group)

Shortlisted Proponents: 16 Oct 2006

• Amey plc (Amey Team)
• Laing O'Rourke (Amey Team)
• Ferrovial SA (Amey Team)
• Skanska ID (Connect Plus)
• Balfour Beatty (Connect Plus)
• Atkins (Connect Plus)
• EGIS Projects (Connect Plus)
• VINCI (Flow)
• John Laing (Flow)
• Carillion (Flow)
• Costain (Flow)

Preferred Proponents: 11 Jul 2008

• Balfour Beatty (Connect Plus)
• Atkins (Connect Plus)
• Egis (Connect Plus)
• Skanska ID (Connect Plus)

Financial Close: 20 May 2009

20 May 2009	Deal reached financial close.
10 Dec 2008	- Deal likely to go ahead with government co-loan. Around 12 banks currently involved in the deal.
19 Sep 2008	- Government understood to have asked lenders for provisional letters of support to gauge market appetite for the deal.
04 Aug 2008	- Indicative offers for funding competition submitted.
11 Jul 2008	- Connect Plus named full preferred bidder.
08 May 2008	- Connect Plus (Balfour Beatty Capital Projects / Skanska Infrastructure Developments AB / Atkins / Egis Projects) named provisional preferred bidder.
18 Jan 2008	- Three consortia asked to re-confirm certain aspects of their bids.
22 Oct 2007	- All three shortlisted teams submitted proposals.
13 Mar 2007	- Invitations to tender issued.
16 Oct 2006	- Shortlist announced; - Amey; - Connect Plus; - Flow.
19 Jun 2006	- ISOPs Received from all Bidders.
17 Mar 2006	- The five shortlisted consortium groups are: - Amey / Laing O’Rouke / Ferrovial Agroman - CircuLON (Fluor / Transurban) - Connect Plus (Balfour Beatty Capital Projects / Skanska Infrastructure Developments AB / Atkins / Egis Projects) - Flow (Vinci Concessions / Autoroutes Du Sud De La France / Laing Roads / Carillion / Costain) - Macquarie Motorway Group (Macquarie European Infrastructure)
16 Jan 2006	- PQQs due in for project manager role
12 Jan 2006	- PQQs due in
12 Dec 2005	- OJEU notice for programme manager
08 Nov 2005	- OJEU release
12 May 2005	- Bidders day held
29 Mar 2005	- PIN published

Funders Legal Advisor:	Slaughter and May
Funders Legal Advisor:	Linklaters
Grantor Financial Advisor:	PricewaterhouseCoopers
Grantor Legal Advisor:	Denton Wilde Sapte
Grantor Technical Advisor:	Halcrow
SPV Financial Advisor:	HSBC
SPV Financial Model Auditor:	Operis Group
SPV Legal Advisor:	Ashurst

Project Sponsor	Connect Plus
Sonsor Total Equity	GBP200m
Sponsor Allocations	Balfour Beatty : GBP80m | 40% Skanska ID : GBP80m | 40% Atkins : GBP20m | 10% EGIS Projects : GBP20m | 10%

Ratios:

D/E Ratio: 85:15

Funding:

Bank Financing
Debt class	Senior Secured
Facility Type	Term Loan
Borrower	Connect Plus
Amount	GBP1120m
Tenor	27 years
Margin	250bps bps
Comments	Margins are 250bps from year one to year seven; 300bps from year eight to year 10 and 350bps from year 11 onwards.
Margin info	over Libor
Banks	Bank Role Allocation Barclays Capital Mandated Lead Arranger GBP70m Banco Bilbao Vizcaya Argentaria SA (BBVA) Mandated Lead Arranger GBP70m Bank of Tokyo-Mitsubishi Mandated Lead Arranger GBP70m Bayern LB Mandated Lead Arranger GBP70m Calyon Mandated Lead Arranger GBP70m Dexia Mandated Lead Arranger GBP70m Landesbank Hessen-Thüringen Girozentrale (Helaba) Mandated Lead Arranger GBP70m HSBC Mandated Lead Arranger GBP70m KfW Bankengruppe Mandated Lead Arranger GBP70m Lloyds Banking Group Facility Agent GBP70m NAB Capital Mandated Lead Arranger GBP70m Natixis Mandated Lead Arranger GBP70m Royal Bank of Scotland Mandated Lead Arranger GBP70m SMBC Mandated Lead Arranger GBP70m Societe Generale Mandated Lead Arranger GBP70m West LB Mandated Lead Arranger GBP70m

Bank Financing
Debt class	Senior Secured
Facility Type	Multilateral
Borrower	Connect Plus
Amount	GBP185m
Tenor	27 years
Banks	Bank Role Allocation European Investment Bank (EIB) Lead Arranger GBP185m

Bank Financing
Debt class	Senior Secured
Facility Type	Multilateral
Borrower	Connect Plus
Amount	GBP215m
Tenor	27 years
Comments	Guaranteed by senior lenders
Banks	Bank Role Allocation European Investment Bank (EIB) Lead Arranger GBP215m

07 Jan 2009

Feedback on funding proposals due