Brussels, 26/05/2009 (Agence Europe) - The European Investment Bank (EIB) has just signed a £400 million (€453 million) to help finance the M25 DBFO project - the widening of the M25 motorway.
The project will be managed by the special purpose Public Private Partnership (PPP) vehicle Connect Plus on behalf of the Highways Agency. The EIB loan, which will consist of GBP 185 million direct lending and a further GBP 215 million which is counter-guaranteed by the commercial banks in the construction period, will be used to provide for the widening of a 63 km stretch of the M25, as well as all maintenance works on the M25 network and strategic road links in and out of London, totalling 400km.
As the M25 is one of the busiest motorways in the UK, the widening project will result in more reliable journeys and reduced travel times. The project will also have a positive impact on road safety on certain sections, by helping to keep traffic moving smoothly.
The project design and implementation will be carefully managed, not only to mitigate negative environmental impacts, such as noise pollution, but also to promote and enhance the environmental benefits. Reduced congestion and improved traffic flows are also expected to reduce carbon emissions. Moreover, the project will include an efficient drainage system which will ensure that storm water is removed quickly and treated appropriately to avoid flooding.
As well as loan finance, the EIB is bringing considerable PPP financing expertise to the M25 project. The road improvements are in line with the UK government's transport policy and, as such, the Bank's contribution is a welcome element to ensure project success. (O.L./trans/rh)