Birmingham has been awarded a record £588 million from the Government to spend on improving the city’s roads. The Department for Transport announced the huge funding grant today. The money will be used to restore and improve the network over the next 25 years.

The cash has been allocated as part of a private finance initiative (PFI) project which means the city council must take on a private sector contractor to complete the work. It is the biggest amount ever awarded to such a scheme.

Council bosses say the money will bring improved journey times to the many thousands of international, regional and local travellers who commute in and around the city each day.

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Birmingham has been awarded a record £588 million from the Government to spend on improving the city’s roads. The Department for Transport announced the huge funding grant today. The money will be used to restore and improve the network over the next 25 years.

The cash has been allocated as part of a private finance initiative (PFI) project which means the city council must take on a private sector contractor to complete the work. It is the biggest amount ever awarded to such a scheme.

Council bosses say the money will bring improved journey times to the many thousands of international, regional and local travellers who commute in and around the city each day.

City transport chief Councillor Len Gregory said: “We are delighted by this announcement, which clearly shows the Government’s faith in Birmingham by the award of the biggest ever local authority PFI in the highways sector.  

“The award of the PFI will give us the significant additional resources required to bring about major maintenance programmes and the restoration of the highway network over a 25-year period. 

“The visible results will be better quality roads and footways, helping to reduce accidents and subsequent claims, whilst improvements such as better street lighting will help reduce crime and fear of crime.”

As the scheme is a private finance initiative project, the council’s next step is to secure best and final offers from the two approved bidders – Amey and Birmingham Street Services – so that work can start in 2009.

The cash has been approved by Transport Secretary Ruth Kelly.

She said: “Better roads mean safer roads and faster journeys, so this partnership arrangement will benefit all road users in Birmingham – motorists, bus users and cyclists alike.”