The Bouygues JV that was named as the preferred bidder for the new river Tyne crossing in north east England has been awarded the concession by the Tyne & Wear Passenger Transport Authority (TWPTA).
Last month the award was made that valued the concession contract at more than US$727M. The construction work on the scheme is budgeted US$516M and is to be carried out entirely by Bouygues Travaux Publics. The 30-year concession calls for design and construction of a 1600m long tunnel across the Tyne and refurbishment of the existing tunnel crossing.
The new tunnel will include construction of a 360m long immersed tube made up of 90m long precast concrete sections. Upon completion of the new crossing the existing tube will be closed for refurbishment. The entire project is to take four years.
Financing of the scheme includes a subsidy of US$233M from the client and equity of US$78M from Bouygues and its ownership partners – HSBC Infrastructure Fund II and Bank of Scotland Corporate. The bulk of the project financing comes from debt funding, totalling US$422M.
Bouygues Construction’s chief executive officer, Yves Gabriel, said: “This project is our first major civil engineering contract in the UK,” and added that it plans to develop all its lines of business in the UK.
The period following the choice of preferred bidder and prior to financial close involved site investigation works, environmental license applications, and order placement with utilities. Partners in the JV include High-Point Rendel, Parsons Brinckerhoff, Faber Maunsell, Able UK, Clancy Docwra, Wood Holmes, Hall Construction, Insite Environments, and Colas.
