Birmingham City Council has selected Amey as its preferred bidder for its £2.7bn, 25-year contract to repair and maintain roads.
It will be the first PFI contract relating to highways on such a large scale.
Len Gregory (Con), cabinet member for transportation and street services, said: “This project will provide a significant capital investment in our roads to bring them up to a good standard and then maintain that for a generation.
“The process to reach a preferred bidder appointment has rightly been a detailed one. We received two very good bids and these have been evaluated thoroughly. We have explored a number of value for money options that justify this process.
“Our next steps will be to work with Amey to finalise the contract details. After the contract is signed, we will work closely together to draw up detailed implementation plans, with the intention of commencing work in April 2010.”
Mel Ewell, Amey chief executive, said: “We are aware of the key role the preferred bidder will play in supporting Birmingham’s continued development and we are looking forward to delivering not only a step change in the city’s highway infrastructure and highways service, but also supporting Birmingham’s vision to be a ‘global city with a local heart.”
The city has over 2,500km of highway, which includes 96,000 street lights, 1,000 traffic signals and over 850 bridges, structures and tunnels, whose management and maintenance will be covered by the contract.
Portsmouth City Council implemented the first street scene PFI in 2006, but on a much smaller highway network.
It is expected Birmingham will make a final decision to enter into contract in autumn 2009.