There is a shortlist of two bidders for the restructured Birmingham PFI highways contract, the council has announced.

Both Kier and SNC-Lavalin have been invited to tender for the highways contract following the completion of the prequalification phase.

The two contractors will now be expected to prepare interim submissions and draft bids to help inform dialogue and progress negotiations.

Birmingham Highways Ltd said during the prequalification, the contractors had ‘demonstrated suitability, technical ability and commitment to health and safety’.

CEO of Birmingham Highways Limited (BHL), Natasha Rouse said: “We are confident that the collaborative approach to procurement, embedded in the competitive dialogue process, will lead to an optimal and sustainable solution.”

Kevin Hicks, assistant director for highways and infrastructure at Birmingham City Council, said “The City Council has worked hard with BHL to restructure the contract and ensure that it remains an exciting opportunity to deliver quality services in Britain’s second city. We are looking forward to this next stage of dialogue with the bidders and developing how they propose to deliver highway services on our behalf through to 2035.”

Originally, Birmingham signed the 25-year, highways management and maintenance contract back in 2010 with Amey. But after various disputes, Amey left the contract in 2020. Since then, Kier has been the incumbent on an interim basis.

Final bids are expected at the end of the year to be formally submitted next January, with the new contract due to be awarded in April.

“The entire tender process for the Birmingham Highways PFI contract has been structured to provide participants with the opportunity to actively participate in dialogue to ensure the contract provides value for money and a robust risk profile,” said Birmingham Highways Ltd.