Vinci finalises €920 million Isle of Wight concession

French contractor Vinci's concessions business has finalised a 25.5-year private finance initiative (PFI) contract worth £730 million (€920 million) with the Isle of Wight Council to maintain the UK island's road network.

Island Roads Services, a company owned 50% by Vinci Concessions and 50% by investment fund Meridiam Infrastructure, is named in the contract, which covers the upgrade, repair and maintenance of 821km of roads and 767km of footpaths

Vinci, which was named preferred bidder for the deal in May, said the project required an initial investment of £145 million (€180 million) - financed by £17 million (€20 million) from Island Roads Services, a bank loan of £95 million (€120 million) and a subsidy of £30 million (€38 million).

Vinci said Island Roads Services' remuneration will be in the form of a fee based on network availability. Vinci subsidiary Ringway, part of its Eurovia division, will undertake construction, operation and maintenance of the network - work that is scheduled to start in April 2013.