Commenting today, Balfour Beatty chief executive, Ian Tyler, said:

"We are delighted that Connect Plus has reached financial close on the M25 DBFO contract. This landmark contract is critical in supporting London and, more widely, the UK's transport network.

"We look forward to transforming the M25 into a world-class motorway with the highest levels of safety and reliability."

The M25 motorway DBFO contract is a 30-year concession during which time Connect Plus will be responsible for widening key sections of the M25 and providing operating and maintenance services and lifecycle replacements on the whole road, which includes strategic road links in and out of London, totalling 250miles.

During the initial three years of the contract the construction joint venture, Skanska Balfour Beatty, will add some 40 miles of additional capacity to the M25 between Junction 16 (M40) and Junction 23 (A1 at South Mimms) and Junction 27 (M11 at Bell Common) and Junction 30 (A13 at Thurrock). As part of the contract, the Skanska Balfour Beatty construction joint venture will refurbish the A1(M) Hatfield Tunnel. All of this work will be completed ahead of the London 2012 Games.

The operation and maintenance of the M25 network will be undertaken by Connect Plus Services, a joint venture comprising Balfour Beatty (52.5%), Atkins (32.5%) and Egis (15%).

Balfour Beatty Capital, the Group's infrastructure investment arm, will invest £80m of equity in the project over the initial three years.

The total amount of project funding is £1.3bn, comprising £925m of senior debt provided by 16 commercial banks, a separate £185m facility from the European Investment Bank and £200m provided by the shareholders of Connect Plus.