The project is funded through senior debt of up to £36 million and subordinated debt and equity of around £4 million provided by shareholders. John Laing holds 50% of the project company equity. The payment mechanism is based on six performance standards with a proportion of the monthly unitary payment dependant upon construction progress during the upgrading period.

John Laing’s project partner and co-shareholder is Amey plc, the key operational services subcontractor to the Special Purpose Company.

The Manchester project is the third PFI street lighting contract that John Laing has invested in, and underlines John Laing’s leading position in the PFI street lighting market, a market that continues to grow strongly and is valued at around £4 billion based on local Government estimates.

John Laing has already invested in three major PFI projects in Manchester: the Street Lighting project above; the Manchester, Salford and Trafford LIFT project (13 separate healthcare schemes valued at £50+ million); and Greater Manchester Police Stations (the design, build, finance and operation of 17 new facilities throughout Greater Manchester, valued at £74 million).