1 The Highways Agency (the Agency), established in 1994, is an executive agency of the Department for Transport (the Department). The Agency is responsible for operating, maintaining and improving England's network of motorways and all-purpose trunk roads. Its objectives include managing traffic, tackling congestion, providing information to road users, and improving safety and journey time reliability.
2 The M25, completed in 1986, forms a 125-mile orbital route some 20 miles from the centre of London. The Dartford Crossing, two tunnels and a bridge crossing the Thames at Dartford, completes the loop. The M25 is the major route around London, carrying international traffic between entry points and the rest of Britain. It also forms the hub of the English motorway system, and serves as a commuter route for local traffic.
3 The Agency needed a solution to high levels of congestion and poor journey time reliability on the M25. In May 2009, the Agency signed a 30-year private finance contract with Connect Plus. The contract requires Connect Plus to widen two sections of the M25 (around 40 miles), and to refurbish the Hatfield Tunnel. Connect Plus must also operate and maintain the M25, including the Dartford Crossing, plus 125 miles of connecting roads at junctions. It is also required to design a solution for congestion for two further sections of the M25 (around 25 miles). The contract has a present value cost of £3.4 billion. Of this total, the widening of the initial sections has a present value construction cost of £900 million and delivers £2.3 billion present value benefits. Figure 1 shows the organisations involved in the contract.