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The natural option for the bid to this magnitude is to use a consortium for the financing, managing

and operation of the acquired asset. Using a consortium overcomes most of the limitations of a
single company. The biggest limitation which will be overcome is limited capacity of a single
company to deliver the services required. Using a consortium which brings together two or more
organisations working together and providing specialist expertise increases the likelihood of a
successful project. The three main services required for this project during the 20-year agreement
are toll operation, financing (investors and lenders) and maintenance. By working in a consortium,
the project company would gain experience skills from the different companies which would prove
valuable during the tendering, the is a reduced development cost for each company as the costs are
shared and finally risks are shared rather than being taken on by an individual company. The biggest
disadvantage for working in a consortium would be the increase complexity and the fact that it can
be time consuming. On a whole the benefits of using a consortium for an infrastructure asset
acquisition such as this project outweigh the negatives.

Balfour Beatty
IUK Bond

DARTFORD RIVER Department for


CROSSING CONSORTIUM Transport

Infrastructure Maintenance
Toll Operator Contractor
Contractor

EMOVIS Highways England


Toll operation

The main source of finance for the operation of the bridge will come from the toll charges which
means the operation of that aspect of the project is of great importance. The company tasked with
the operation of the toll charges during the period is Emovis. Emovis has extensive experience within
the tolling sector and is currently operating in seven countries around the world. Emovis is currently
operating a similar e-tolling free-flowing Mersey Gateway bridge.

Maintenance Contractor

Highways England will be responsible for the maintenance of the bridge during the length of the
contract. The Government-owned Highways England has a vast experience as far managing highway
infrastructures are concerned. It is currently responsible for maintaining a significant portion of the
road in England.

Financial Structure

The Dartford river consortium is a special purpose company which will be form for the sole object of
contracting with Department of Transport for the operation of the bridge for a 20 year span. The
consortium is comprised of two infrastructure companies with extensive experience within the
sector Balfour Beatty and BBGI. Each company will provide a 50% equity. A long-term bank loan will
also be secured from Barclays to for acquisition of the asset from the government.

Risks

Due to the non-trading nature of the project and the fact that the contract is mainly for operations
and maintenance of the bridge for 20 years the financial risks are slightly more limited than that of
other projects particularly projects requiring construction. However, the are several risks relating to
the liquidity of the contracted companies, toll charging, traffic forecast and road user risks.

Liquidity of Contracting Companies

This is a natural concern however one area of comfort is the fact that highways England is a
government company financed by the UK government. A creditworthy check also shows that Emovis
is currently in a good financial position and therefore liquidity risks are minor concern.

Tolling and Traffic Forecast

The reliance on tolling for income presents a significant due to the reliance on demand for the use of
the road. It means that forecast of revenue and traffic must be reliable

Road User Risk

Road user credit risks are one of the biggest concern for the period of the project. It relates the loss
of toll revenue due to unpaid charges, realised through debt recovery. Other risks relating to road
users include service provider errors and data unavailability. Approximately £4 million road user
charge and £10 million enforcement charge will have to be written off each year. This is based on
figures from the 2015-2016 year.

Maintaining all aspects of the bridge.

Highways England accepts all risk relating to the maintenance of the crossing.