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Connect Plus

and M25
Widening and operating London’s
orbital motorway
Connect Plus and the M25 | Widening and operating London’s orbital motorway

Overview
Connect Plus is a Skanska-led availability London and to two of the world’s busiest
payment-based design, build, finance and airports (Heathrow and Gatwick), plus the
operate (DBFO) Public Private Partnership road’s 1,800 structures, including 750 bridges
(PPP) designed to add capacity to the M25, and 150 gantries, five tunnels and one long span
London’s orbital motorway, which carries bridge. The 30-year concession with the UK's
15% of the UK’s motorway traffic, or 200,000 Highways England (formerly the Highways
vehicles a day. The construction project Agency) is one of the UK’s largest ever PPPs.
included four components:
Construction was completed in two phases:
• Widening 38 miles of highway to four lanes, the first in 2012 in time for the London
in four sections Olympics, and the second in 2014. Operation
• Refurbishing a three-quarter-mile, two- and maintenance are ongoing, and the
bore tunnel concession runs from May 2009 to September
• Widening and converting a further 28 miles 2039, with services having started in September
into the UK’s first smart motorway 2009 on financial close. The entire contract
• Removal of the toll plazas and cash was worth US$9.78bn* at Financial Close.
collection at the Dartford Crossing Construction accounts for $2.17bn of this and
lifecycle/operations and maintenance (O&M)
The partnership also includes operation the remainder.
and maintenance of the whole 117 miles of
the M25’s existing and new road, as well as * Exchange
 rate based on prevailing rates, from British Pound to
a further 117 miles of ‘stubs and tails’ into US Dollar, at Financial Close.

Skanska ID M25 case study 2


Connect Plus and the M25 | Widening and operating London’s orbital motorway

Skanska has 40% ownership in Connect The $2.01bn project funding was made up of
Plus (an investment of $124m), alongside $1.43bn of floating rate senior debt provided
Balfour Beatty (40%), Egis (10%) and Atkins by 16 commercial banks, a separate $285m
(10%). Construction was delivered by a 50/50 facility from the European Investment Bank
construction joint venture between Skanska and $309m provided by the shareholders of
UK and Balfour Beatty, where Skanska’s share Connect Plus. A complex series of interest rate
of the contract was $1.08bn. Connect Plus has swaps saved $465m on the cost of borrowing.
responsibility for lifecycle management, with
operations and maintenance (O&M) being The construction project was delivered early
delivered by Connect Plus Services, a joint and to budget, despite additional availability
venture between Balfour Beatty (52.5%), pressure created by the 2012 Olympics, which
Atkins (32.5%) and Egis (15%). used the M25 as the key route from Heathrow
to the Olympic Park. The lifecycle/O&M
Financing this immense project was associated with such a vast, complex and aging
challenging, as negotiations took place in asset have been more challenging. But a unitary
the teeth of the global financial crisis and charge linked to inflation has allowed Connect
immediately after the collapse of Lehman Plus to invest beyond its contract in renewal,
Brothers. With the cost of debt soaring and safety and capacity, and to maintain its key
the appetite for risk low, Skanska took the target of 50mph across the whole motorway.
lead in negotiations, bringing together a wide
group of lenders and developing a risk profile
that satisfied the Highways England client.

Skanska ID M25 case study 3


M10 A1(M)

21 22
20
Connect Plus and the M25 | Widening
24 and operating London’s orbital motorway
M25
25 26
27
1
19
18
17
M11 28
M40
29
16
1a
M25

M4 15
4b
M4 London 30
31
14 Heathrow 1a
13 Airport 1b
2
M3
12
2 3
11 M20
4
M3

10 M25 9
5
M26

7
8 8 6

Gatwick
Airport

Transportation Sector M25 Junction 18 to 21 (12 km) widening


Highway and interchanges Section 1z
M25 Junction 21 to 23 (13 km) widening
Project Details Section 4
Complex Design-Build contract M25 Junction 27 to 30 (25 km) widening
DBFO PPP in the UK Section 6
Large financing size Hatfield Tunnel refurbishment
Large participation by developer/contractor All completed September 2012

Reference Design, construction and finance


Highways England (formerly the Highways
Agency) of Phase two - the Later Upgraded
Sections (LUS), including:
The project in figures Section 2
Concession: 2009-2039 M25 Junction 5 to 7 (17 km) widening
Construction: 2009-2014 Section 5
Construction: Skanska 50% M25 Junction 23 to 27 (27 km) widening
Construction value to Skanska: $1.08bn All completed December 2014
Skanska investment: $124m Payment Mechanism: Availability
Shareholding: Connect Plus Consortium – Date of Financial Close: May 20, 2009
Skanska (40%), Balfour Beatty (40%), Atkins Construction Start Date: Early works started
(10%), Egis (10%) before FC (Jan 2009 Early works agreement)
Skanska Balfour Beatty construction JV – Concession Period Length: 30 years
Skanska (50%), Balfour Beatty (50%) Concession Period Year End: 2039
Project Value at time of Financial Close
Design, construction and finance $9.78bn
Equity Investment/Financing Size at time of
of Phase one - the Initial Upgraded FC: $309m/$1.71bn senior debt
Sections (IUS), including: ID’s Equity Investment at time of FC (and
Section 1x percentage): $124m (40%)
M25 Junction 16 to 18 (12 km) widening O&M Value at time of FC: $7.6bn
Section 1y Debt/Gearing 85:15

Skanska ID M25 case study 4


Connect Plus and the M25 | Widening and operating London’s orbital motorway

The challenge
London’s 117-mile M25 is one of the world’s • Th
 e contract also includes the operation
largest orbital motorways. Originally intended and maintenance of the new and existing
as an orbital bypass of the city for long distance sections of the M25 and a further 117 miles
traffic, the road’s design included numerous of associated stretches of motorway and
junctions that have attracted local and trunk roads and the Dartford Crossing
commuter traffic. for 30 years

Since its completion in 1986, the M25 has The widening work was completed on behalf
become increasingly congested, carrying of Connect Plus by the Skanska Balfour
200,000 vehicles a day, of which 50% use the Beatty Joint Venture (SBBJV) in two phases,
M25 to travel to and from work. For many supported by designer Atkins, alongside the
years, the M25 was often called ‘the world’s Hyder Halcrow Joint Venture acting as the
biggest parking lot’. client’s representative.

In May 2009, the Highways England awarded The benefits of the scheme include:
the Skanska-led consortium Connect Plus a • Improved and more reliable journey times
30-year DBFO contract to add capacity to the • Reduced congestion
M25 and manage it and key arterial link roads. • Enhanced motorway safety
• Better driver information
• An initial project to widen two sections of • Faster-flowing traffic at the Dartford Crossing
the road to four lanes by adding 38 miles
of new road, plus refurbishing the Hatfield At the peak of construction, the team
Tunnel on the A1(M), was completed in delivered a mile of road a month at a cost
2012 in time for the London Olympics of $1.55m per day, employing between
• A second phase of widening was 3,500 and 4,000 people.
completed in 2014, adding 28 more miles
of road to two sections, which have also During the life of the concession, we
been converted to smart highway, and are spending around $3m per week
converting the tolled Dartford Crossing to on lifecycle and maintenance, with
a freeflow system 700 permanent jobs.

Skanska ID M25 case study 5


Connect Plus and the M25 | Widening and operating London’s orbital motorway

A major construction programme


Phase one
• 3 8 miles of road widened • 39 emergency telephones
• 35 months • 167 overhead signals
• 125 gantries, including 44 super-span • 91 verge mounted signs
gantries • 95 CCTV cameras
• 2,168,092m3 of material excavated and
recycled Phase two was completed as part of the
• 58 miles of sheet piling to retain the Connect Plus Smart Motorway All Lanes
embankment Running (SM-ALR) initiative, the UK’s first
• 350 miles of cable highway of this type, which also developed
• 124 miles of drainage and deployed cutting edge technology. Under
• 360,000m3 of concrete SM-ALR, the hard shoulder is permanently
• 500,000 tonnes of recycled road planings converted into a traffic lane on these sections
• 11,872,000 man-hours worked of the motorway and replaced by regularly
• Two three-quarter mile bores at Hatfield spaced emergency refuge areas, each one with
Tunnel refurbished to EU standards an emergency telephone. CCTV cameras help
• 170 miles of cabling and 56 jet fans installed the operations room to spot incidents and deal
in the tunnel with them as fast as possible. Other innovative
technologies used include LED signs, radar
Phase two vehicle detection and remote diagnostics.
•T  wo new sections converted to ‘all-lane
running’ For vehicles which can’t make it to an
• 28 miles of new road emergency refuge, smart motorway technology
• Delivered 22 weeks early, saving 25% of allows the closure of any lane by the display
program duration of a red “X” on the gantries, moving traffic
• $37m cost saving shared with client away from the incident and keeping it clear for
• 9 gantries that span both carriageways emergency vehicles.
• 23 refuge areas

Skanska ID M25 case study 6


Connect Plus and the M25 | Widening and operating London’s orbital motorway

All-lane running increases the capacity of the • Consultation with regulatory and advisory
motorway to reduce congestion and makes bodies
journeys more reliable at a considerably lower • Moving species and habitats that might be
cost and with less disruption than a traditional affected
road widening scheme. • Assessment of ecological information to
inform the detailed design of the work
Collaborative planning with our supply chain
and Highways England client allowed us to The following measures helped to minimize
reschedule the program for concurrent working disruption caused by construction work:
on two phases, which helped us deliver the • Use of the quietest possible plant and
project 22 weeks early at a saving of $37m, construction methods
which we shared 50/50 with the client. • Controlling dust by covering vehicles
carrying dry, dusty materials and
mechanically sweeping hard surfaces and
Sustainability and exits onto public roads
environmental • Use of low noise surfacing materials
• Noise and visual protection
management A bespoke materials and waste strategy was
The M25 DBFO partners were committed designed to maximize the use of recycled,
to working in the most environmentally secondary and manufactured aggregates
responsible manner. Before starting work, the in preference to primary aggregates. This
project team carried out a full environmental approach diverted significant quantities of
impact assessment including ecological and material from landfill, reducing traffic impact
archaeological surveys. The comprehensive on the local network as well as enhancing the
environmental management plan they overall sustainability of the project.
produced took into account:
• Ecological works to protect plants and Phase one used a total of 2,300,000 tonnes,
wildlife including 1,200,000 tonnes of material

Skanska ID M25 case study 7


Connect Plus and the M25 | Widening and operating London’s orbital motorway

processed on site from inert construction and of embodied carbon – saved by value
demolition waste, imported from other projects engineering during pavement design
in the south east of England. This represents • 125,670 trees, 28,000 shrubs planted
92% recycled content for bulk materials • major grassland planting
and a saving of 35,000 tonnes of embodied • 400 bird boxes
carbon. Where use of primary aggregate was • 2,800+ animals moved
unavoidable, responsible procurement was
undertaken in line with BES 6001. Phase two of the project continued this
environmental performance, reducing our
A supplementary earthworks strategy carbon footprint by 80% against traditional
retained 100% of inert material on site. road widening programs and savings
Over 1,800,000 tonnes of surplus inert soil approaching $17m per mile completed.
was diverted from landfill and reused to create
eight environmental bund structures
at appropriate locations. Saving the client
These environmental bunds provide visual and
money through value
noise screening to nearby residential areas with
up to 5dB reduction in traffic noise. The bunds
engineering and
were designed to enable the slope facing away alternative technical
from the motorway to be returned
to agriculture. solutions
Key statistics Throughout construction, our team was alerted
• 2 ,200,000 tonnes of high-quality aggregates to the potential to save our client money
produced on site – 98% recycled materials through a variety of technical and value
• 250,000 tonnes of glass sand used for engineering measures. Some of the most
drainage and backfill, saving virgin effective of these were:
aggregates • King Sheet Piling – our innovative,
• 320,000 tonnes of asphalt – 15,000 tonnes patent pending King Sheet Pile (KSP)

Skanska ID M25 case study 8


Connect Plus and the M25 | Widening and operating London’s orbital motorway

system reduces the quantity of steel by retaining wall was adopted as a preferred
33% and eliminates 45,000 tonnes of widening solution in the verges, with
embodied carbon, as well as allowing communications installed behind the wall.
faster construction. The system replaces Walls up to 2.3m were constructed by this
alternative pairs of the traditional, heavy process, which is believed to be the highest
piles used in the construction of hard slipformed wall in Europe. The slipforming
retaining walls with lighter, thinner process was faster than other widening
and shorter piling sections spanning options and the resulting narrower verge
horizontally between the remaining full- reduced excavation volumes and overall
length sheet piles. The 15 miles of wall CO₂ emissions. This technique has also
installed on the M25 has saved up to been used for slot drains, surface water
33% of steel and delivered a four-fold channels and pavement widening.
increase in productivity in the chalky earth
between junctions 16 to 23 of the road, as • Smart motorway – Phase two of the
well as doubling overall installation speed. road widening program converted the
The sheet piles were sourced from 100% sections of highway concerned to a ‘smart
scrap steel using a highly efficient electric motorway’, which uses the hard shoulder
arc furnace, reducing the embodied carbon as a permanent lane, and replaces it with
by 75%. regularly spaced refuges. This saves a
substantial proportion of cost as seen by the
• Slipforming – Innovative slipform concrete comparison between phases one and two:
processes incorporated ducting into the o Phase one – road widened and 38 miles
central safety barrier during installation. added – $1.55bn
This carries the miles of cable required to o Phase two – converted to all-lane
connect the motorway’s lighting columns. running and 28 miles added – $621m
A much higher slipformed concrete

Skanska ID M25 case study 9


Connect Plus and the M25 | Widening and operating London’s orbital motorway

Our approach to collaborative planning The same laser scanning data were used to
also saved a further $37m on the bid price identify a temporary works clash with the
by delivering the highway 22 weeks early, existing structure. A constructed model
which reduced the program duration by of the existing structure was compared
25% and saved $37m. to the second drawings, which allowed
early identification of discrepancies and
• Building Information Modeling (BIM) allowed the design to be adapted before
and Laser scanning – we have used laser construction, avoiding delay, duplication of
scanning techniques to improve worker work and reordering materials.
safety and deliver cost, program and
CO₂ emissions savings. Survey data
from laser scans were used to redesign Keeping traffic running
the carriageway over Ockendon Railway
Bridge, located between junctions 29 and
on this hugely busy
30, which kept trains running while the
work was carried out. The engineering
highway
team initially produced laser scan data to While some disruption during construction
investigate the design and sequencing of was unavoidable, our team minimized the
widening works across the bridge, which impact of our work on local communities,
saved repeat journeys to the site. As the keeping delays to a minimum and protecting
scan was completed from a place of safety the environment while prioritizing the safety of
away from the live carriageway and railway our workforce and the public.
boundary, the program gained 18 weeks
by eliminating the need for a three-night The fast paced program required both day and
railway possession. night working; at peak the team was working

Skanska ID M25 case study 10


Connect Plus and the M25 | Widening and operating London’s orbital motorway

24 hours a day/7 days a week. Advance notice the hard shoulder. These risks were carefully
was routinely given for all lane and slip road managed through risk assessments and
closures, in agreement with local motorway effective controls, combined with an ethos that
police. Several principles were strictly followed: united the project delivery partners behind
• The need to maintain three lanes in the aspiration of achieving a completely
contraflow injury-free environment and a shared vision
• Overnight and slip road closures as of what constitutes good safety practice. These
necessary principles supported the Highways England’s
• Temporary 50mph running with average ‘Aiming for Zero’ health and safety strategy.
speed enforcement
• Regular liaison with local police and The 24-month refurbishment of the
highways maintenance stakeholders Hatfield Tunnel was completed with
• 24/7 free recovery available from the no accidents, lost time injuries or dangerous
carriageway occurrences reported under the UK regulatory
• Customer care unit where motorists framework RIDDOR, totaling almost 1 million
could wait in safety for their own recovery incident-free man-hours. The project team’s
service. The unit included a kitchen area, vigilance and devotion to safe working was
vending machines, playhouse and toys for commended with a Gold RoSPA* Award in
children, payphone, TV and toilets with 2011 and shortlisting in the NCE International
baby changing facilities Tunneling Award for industry leading
achievements in safety. Phase two of the
The widening works required a stringent program completed 1.2 million man-hours
safety strategy due to the close proximity of without a reportable incident.
road workers, plant and site vehicles to the
live network and within the limited space of *The Royal Society for the Prevention of Accidents

Skanska ID M25 case study 11


Connect Plus and the M25 | Widening and operating London’s orbital motorway

However, although our safety record was network of 234 miles, including five tunnels
exceptional, the inherent danger of the project and the Queen Elizabeth II (QE2) Bridge. Our
was demonstrated by a fatality in 2010, which contract specifies that at the end of our 30
led to prosecutions of a subcontractor and an year concession we must hand back the whole
individual last year, and another incident that network in a condition no worse than when we
resulted in a double amputation. To reinforce took it over.
the role of safety at the heart of the project,
the construction joint venture (CJV) partners Around-the-clock monitoring captures all
share information about safety alerts from their aspects of the network’s performance, and
whole organizations, not just the M25. a Travel Time Monitoring System helps us
deploy our resources to tackle congestion, ease
traffic flow and identify potential improvement
Operation and initiatives. We use GPS technology to track the
Maintenance – position of our 16 incident support vehicles
(ISUs) and winter maintenance fleet, which
a journey of discovery enables a more dynamic approach to incident
and winter service management.
In addition to undertaking major improvement
and lifecycle works, Connect Plus is With our target of traffic flow at 50mph,
responsible for the operation and routine and substantial financial penalties for not
maintenance of the M25 and key spur roads. maintaining this or closing lanes, we have
From two control centers and a network clear priorities and over 8,000 contractual
of seven depots, 700 employees interface obligations. However, the road is immense,
closely with Highways England, managing a with tens of thousands of different components,

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Connect Plus and the M25 | Widening and operating London’s orbital motorway

from 6,000 signs and 18,000 lamp standards primary transport corridor for 2012 London
(complete with light bulbs) to the Dartford Olympics, but only 12 weeks before the games
Crossing, made up of two, two-lane tunnels and were due to start, we discovered cracks on
the four-lane, 812m cable-stayed QE2 Bridge. a major steel ramp and were forced to close
the road in the face of considerable opposition
Such a vast and complex network, much from senior members of the government. By
of it dating back to 1986, had many secrets bringing together an emergency team and
that were not uncovered until Connect Plus using advanced laser scanning techniques that
began work in earnest on the O&M contract. had never been tried in construction before,
The ongoing ‘journey of discovery’ by the we were able to map the existing structure,
lifecycle and maintenance teams has unearthed with all its complex load-bearing distortions,
major challenges ranging from a lack of and mill steel plates that would reinforce
standardization that means maintenance it. Under intense political pressure, which
crews can’t carry enough equipment to have demanded photographs of daily progress for
the right tools for every job, to construction the Prime Minister, we resolved the situation
through chalky terrain and major structural and opened the road the day before the first
faults that threaten lives. A brief selection of visitors arrived. We invested the cost of the
the challenges we have faced and the way we repairs ($10m+) as part of our commitment
have responded with investment from our own to safety.
finances and an attitude that seeks innovation
in adversity include: • QE2 Bridge joints replacement – every bridge
has joints that enable it to ‘breathe’, expanding
• Potential ramp collapse in the run up to the or contracting in response to temperature
2012 London Olympics – the M25 was the changes. When the O&M team started work

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Connect Plus and the M25 | Widening and operating London’s orbital motorway

on the M25 they discovered that the joints them, it’s still not clear approaching six years
on QE2 were old and fatigued and needed after financial close, exactly what makes up
replacing. There were two issues: the network. To address this, Connect Plus
o The cost of replacing these 19m x 1m is investing $4m in an asset management
grids was not included in the original system, which will be used to store details
contract, but they could be crucial to the about all the individual elements on the
safe operation of the bridge – Connect M25, support maintenance and manage
Plus would have to invest risk. Connect Plus is working with the US
o The potential disruption to traffic caused supplier of the system, AMSIT, to create
by closing lanes to replace the joints one of the world’s most advanced highways
threatened to expose us to massive management systems, with two
financial penalties main capabilities:
o Routine management data based on the
Our solution was to research the market condition scoring required by our client,
carefully and select high quality joints that Highways England
were expensive at more than $10m but that o Decision support – where we input
would only need to be replaced this one time scenarios and the system identifies
in the 30-year concession. Beyond that, we various ways of optimizing them
developed a way of working on the bridge
at night and under it during the day, we Again, the cost of this system was not
replaced the grids over the course of two included in our contract, but we believe it
summers without slowing down the traffic. will deliver major across a program that is
currently costing $3.1m per week.
• Asset management system – with over 60,000
separate components and a contract to hand
them back in as good a condition as we found

Skanska ID M25 case study 14


Connect Plus and the M25 | Widening and operating London’s orbital motorway

Awards
• I nstitute of Civil Engineers Health & Safety
Project of the Year 2014
• Construction News Sustainable Project of
the Year award 2014
• RoSPA Gold Award for Occupational
Health & Safety 2011
• Institute of Civil Engineers Merit Award
2010
• Brownfield Briefing
• Construction News Environmental Project
of the Year (shortlisted)
• National Recycling Award
• International Green Apple: Environmental
Best Practice and Bronze award 2011
• Considerate Constructors Scheme: 5 Silver
and 1 Bronze awards to date; ‘Performance
Beyond Compliance’
• Recycling Stars Gold award
• CEEQUAL, 87% Excellent

Skanska ID M25 case study 15


Skanska Infrastructure Development
www.skanska.com/ppp
United States
99 Canal Center Plaza
Alexandria, VA, 22314
United States
+1 703 340 1200
United Kingdom
One London Wall
London EC2Y 5HB
United Kingdom
+44 207 429 4200
Sweden
Warfvinges väg 25
112 74 Stockholm
Sweden
+46 10 448 00 00

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