Decision Details

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This section allows you to view the general details of a Decision

Details

Status:
Implemented
Title:
Highway Maintenance and Management PFI Contract – Update
Include item on Forward Plan
Yes
Is Key Decision
Yes
Item Contains Exempt/Private Reports
Yes
Reference:
013689/2025
Urgent Decision - Not in Forward Plan
Yes
Details for Agenda Sheet

Report of the Executive Director, City Operations

Implementation Date (not before meeting on)
Fri 10 Jul 2026
Purpose
This report sets out the Council’s approach for securing a sustainable and effective highway service following the removal of support by the Department for Transport (DfT) for the Birmingham Highways Private Finance Initiative (PFI) model. 
Key Portfolio
Environment & Transport
Decision Maker
Chief Officer Decision Maker
------ N/A ------
Reason For Key Decision
All Wards affected. 
Relevant Documents
Decision Type:
Committee
Decision Maker:
Cabinet
Directorate

City Operations

Highways and Infrastructure 

Other Information
Private Reason
Decision Outcome

On 10 July 2026 Cabinet:-

(i) Approved the acceptance of revenue grant funding from the West Midlands Combined Authority (WMCA) of £17m for 26/27. This has been allocated by the DfT to support the Council’s transition arrangements away from the private finance initiative;

(ii) Approved the base revenue budget for 26/27 to be £63.378m and agrees to the use of £29.0m from the retained Highways PFI revenue reserves to fund the Interim Service Contract;

(iii) Delegated authority to the Executive Director of City Operations in consultation with the Director of Commercial and Procurement and the Cabinet Member for Transport to extend the Interim Service Contract to March 2029 to mitigate the risk of it expiring before replacement contracts can be put in place;

(iv) Delegated authority to the Executive Director of City Operations, in consultation with Cabinet Member for Transport, the Executive Director of Finance and S151 Officer and the City Solicitor (or their delegates) to take all necessary steps to implement the recommendations in this report including:

  • Acceptance of £17m City Regions Sustainable Transport Settlement capital funding into the budget and progressing the work on the business case for its planned use for inclusion in the Capital Budget (as part of the Capital Gateway process);
  • Conclusion of all legal and commercial matters arising from the termination of the Project Agreement with Birmingham Highways Limited provided these are within the council’s approved budget for highways;

(v) Approved the commencement of market engagement to support early dialogue with the market on potential options for the future Highways Delivery Model, informed by the approach set out in paragraphs 4.27 to 4.34 and Appendix A to the report;

(vi) Noted the actions that have been taken following the DfT decision at paragraph 4.11 to 4.15.

THE DEADLINE FOR CALL IN IS 1600 HOURS ON THURSDAY 16 JULY 2026.

 


Would the recommended decision be contrary to the budget and policy framework:
No
Decision Options:

Additional Information

Reg 10
Reg 11

Decision Criteria

This Decision does not contain any decision criteria records.

Wards

This Decision does not contain any Ward records.

Topics

This Decision does not contain any Topic records

Overview and Scrutiny

This Decision does not contain any Overview and Scrutiny records.

This section allows you to view the reports for the Decision.

Reports

  1. Highway Maintenance and Management PFI Contract – Update - Private Report
  2. pdf Report - 260630 - Cabinet - ISC Novation and Procurement Strategy for Highways Maintenance Management Contract Arrangement_V13 (1) (438Kb)
    1. pdf Appendix A - Highways Maintenance Alternative Delivery Model Assessment Report (2) (2258Kb)
    2. pdf Appendix B EIA001388 - draft v2 (1) (341Kb)
    3. pdf Appendix C - Environmental and Sustainability Assessment - Highways Maintenance Interim Service Contract Novation and Procuremen (1) (188Kb)
    4. pdf Appendix D - BHMMS Risk Register for June Cabinet (1) (1370Kb)
    5. pdf Appendix E (Legal Advice) EXEMPT v1 (1) - Private Report
    6. pdf Appendix E a. Addendum to potential ISC extension - advice note (220402026)(211921538.1)(Exempt) (1) - Private Report
    7. pdf Appendix E b. Advice note from counsel dated 02 04 2026 (Exempt) (1) - Private Report
    8. pdf Appendix E c. - BCC options paper - BHL termination (Exempt) (1) - Private Report
    9. pdf Appendix E d.1 Addendum to Potential Kier extension_direct award - Advice Note(Issued and Compiled)(114498380.1)(Exempt) (1) - Private Report
    10. pdf Appendix E d.2 Addendum to potential ISC extension - advice note (23 April 2024) (Exempt) (1) - Private Report

This section displays the history of the Decision.

Decision History

Date & Time CreatedUser Full NameStatus DescriptionDetails
 Page 1 of 8, items 1 to 10 of 73.
10/12/2024 17:23:11Lesley SparkesBusiness Item Created 
10/12/2024 17:23:11Lesley SparkesCommittee AddedCabinet
10/12/2024 17:23:11Lesley SparkesMeeting Added21/01/2025 10:00AM
10/12/2024 17:23:56Lesley SparkesStatus ChangedDecision Scheduled [1]
20/12/2024 16:43:20Mandeep MarwahaGeneral Details Edited 
20/12/2024 16:43:50Mandeep MarwahaGeneral Details Edited 
20/12/2024 16:45:12Mandeep MarwahaReport AddedDocument ID 275564: Highway Maintenance and Management PFI Contract – Update
20/12/2024 16:45:42Mandeep MarwahaGeneral Details Edited 
20/12/2024 16:47:50Mandeep MarwahaGeneral Details Edited 
20/12/2024 16:48:02Mandeep MarwahaMeeting Deleted21/01/2025 10:00AM

Approval/Comments

No history found.