Ferrovial, through subsidiary Cintra Infraestructuras and Amey, a subsidiary of Ferrovial Servicios, in consortium with SWIP Infrastructure Funds and Meridiam, has achieved commercial and financial close of a DBFO (design, build, finance and operate) project to complete Central Scotland's motorway network, it has been announced.

The M8/M73/M74 Motorway Improvements project has an estimated construction cost of around £310m and the consortium will obtain revenues from operating and maintaining the infrastructure for 30 years after the new roads are opened. The contract will be financed over the long-term with a bond issue and a loan from the European Investment Bank, for a total of approximately £350m.

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It is anticipated that the project will alleviate traffic congestion between Glasgow and Edinburgh and drive economic development in the region. As part of the project, the consortium will construct a new motorway and upgrade the existing section of the A8 between Baillieston and Newhouse, plus improve the Raith Interchange and widen several sections of the M8, M73 and M74. The project comprises 28.6km of motorway: 12.4km will be newly built and the other 16.2km of existing road will be upgraded.

A construction joint venture led by Ferrovial Agroman will undertake the design and construction work, to be completed in spring 2017, and Amey will be responsible for operation and maintenance. William James Haughey, SRP Chairman, said: "Scottish Roads Partnership is delighted to achieve financial close and reach this key milestone in the project. We look forward to using our infrastructure design, build, financing and operations expertise to deliver these important infrastructure improvements, whilst ensuring we provide best value, bringing economic growth and employment to Scotland, as well as benefits to road users."

(JP/MH)