ALMOST £500 million will be made available to the Isle of Wight Council by government for the highways PFI, according to the Department of Transport.
In a draft letter, which has been included in papers ahead of next week’s Isle of Wight Council cabinet meeting, the DoT said: "This note confirms that the Isle of Wight Council Highways Maintenance PFI project can proceed to financial close.
"It also confirms that if the transaction is entered into on the basis set out in the final business case, the Department for Transport will issue the authority with a final approval letter for an annual grant allocation up to a maximum of £19.8m or a total lifetime cost of up to £487m."
The Isle of Wight Council contribution is estimated to be about £7m a year, the equivalent to £175m over the 25 year contract.
It is expected that 65 Isle of Wight Council highways staff will transfer to work for Vinci Concessions as part of the deal.
The cabinet is due to approve the PFI appointment on Tuesday and it is expected to be endorsed at an extraordinary meeting of the full council the following day.