Merseylink wins US$3.12bn Mersey Gateway Project contract

Merseylink was today announced as the preferred bidder for the US$3.12 billion (£2bn) Mersey Gateway Project in North West England. Making the announcement together in the observatory in the Catalyst Museum in Widnes overlooking the River Mersey, Halton Borough Council and Merseylink also confirmed they have jointly identified savings amounting to “tens of millions of pounds” on the projected public sector contribution to the project budget.
June 20, 2013 Read time: 3 mins
Artist’s impression of the completed Mersey Gateway Bridge

Merseylink was today announced as the preferred bidder for the US$3.12 billion (£2bn) 6126 Mersey Gateway Project in North West England.

Making the announcement together in the observatory in the Catalyst Museum in Widnes overlooking the River Mersey, Halton Borough Council and Merseylink also confirmed they have jointly identified savings amounting to “tens of millions of pounds” on the projected public sector contribution to the project budget.

Merseylink and the council team will work on the final details of the plans before reaching financial close, signing a contract and starting site clearance and demolition later this year. Full details of the winning bid will be published at that time.

The Merseylink plans are said to retain the iconic three-tower design associated with the Mersey Gateway Project, but have developed the construction methods.

The design for the main bridge is based on a reinforced concrete deck, which is a change from the reference design, based on steel fabrication. This is one of the areas that is said to have produced significant financial savings for the project.

Once a formal financial close is reached, Merseylink will then become the project company and will work with the council to deliver a 30-year contract to design, build, finance and operate a new toll bridge over the River Mersey between Runcorn and Widnes, together with associated work in the towns.

The centrepiece of the Mersey Gateway Project is a new six-lane toll bridge over the River Mersey. The existing Silver Jubilee Bridge will also be tolled as part of the project, which will bring major estimated economic, transport and social benefits to the region, including 470 permanent full-time equivalent jobs on site during construction, 4,640 permanent direct and indirect jobs, quicker journey times by up to 10 minutes in peak periods, and an improvement in journey time reliability.

Mersey Gateway is being part funded by the 1439 UK Department for Transport. Ministers will consider the Council's final funding submission later this year. Any financial savings confirmed at that time on the projected budget will be split 70/30 between the UK Government and Halton Borough Council in line with an existing agreement over the 30-year lifetime of the project.

The Merseylink consortium’s equity partners are Macquarie Capital Group Limited, Bilfinger Project Investments Europe Limited, and 1340 FCC Construcción. The construction joint venture, made up of Kier Infrastructure and Overseas Limited, Samsung C&T Corporation and FCC Construcción S.A. 4757 Sanef S.A., will deliver and operate the tolling solution for the consortium.

Chris Rhead, project director for the Merseylink consortium, said, “We know how important this project is to the region and will be working closely with the council, the local LEPs and bodies like the Halton Chamber of Commerce to do everything we can to maximise the benefits it can bring. I would urge businesses to register as potential suppliers at www.merseygateway.co.uk so they can keep in touch with future opportunities.”

Steve Nicholson, Mersey Gateway project director, said, “The outcome of procurement demonstrates the value in allowing private sector to modify the design in order to reduce costs. The quality of all the bids we received and the work put in by all the shortlisted bidders has been of a very high standard, and each one satisfied our challenging requirements. We now have a very attractive final offer from Merseylink, which means that we don’t need all the money we originally requested from Government.”

See the video below showing new CGI footage of the new Mersey Gateway Bridge along with interviews with members of the project team and the Merseylink consortium

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