Blake Morgan advises Welsh Government on handback of first PFI project in Wales

The law firm initially advised the Cardiff Bay Development Corporation, the Welsh Development Agency and the Welsh Government during the project’s lifespan.

The Bute Avenue PFI project regenerated Cardiff Bay and involved the design, construction, and 25-year maintenance of Bute Avenue (now Lloyd George Avenue), the arterial route connecting Cardiff Bay to the city centre, paving the way for later developments.

The PFI formally expired in December 2025, with the infrastructure handed back to Cardiff Council, marking one of the first PFI handbacks in Wales.

Alongside the core PFI advisory work, Blake Morgan also advised the Welsh Government on several property transactions linked to the PFI, supporting the Welsh Government’s wider strategy to develop the south of Callaghan Square and facilitate the proposed Metro connections from central Cardiff to Cardiff Bay.

In the final stages of the PFI, Blake Morgan advised the Welsh Government on the handback arrangements throughout 2024 and 2025.

The firm said this included advising on the full range of legal work required to bring the arrangement to a close, including deeds of variation to the project and highways agreements to accommodate other major infrastructure projects such as the South Wales Metro, handback inspections and condition reports, and agreements discharging Welsh Government, ProjectCo and subcontractors’ maintenance and handback obligations.

Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, said: "The Bute Avenue PFI has played a defining role in Cardiff's transformation over the past three decades, and I am grateful to all those, including Blake Morgan, whose expertise and dedication have helped bring this landmark project to a successful close.

"It helped pave the way for the investment, jobs and opportunities that have followed, laying the foundations for the next chapter of Cardiff Bay's development, including phase one of Cardiff Crossrail, the new arena and wider regeneration of Atlantic Wharf.”

Tomos Lewis, Partner at Blake Morgan, said: “The Bute Avenue project has played a defining role in transforming Cardiff and connecting the city to its bay. To have advised on the project from its very beginning in the late 1990s through to its conclusion in December 2025 is something we are enormously proud of as a firm.

“The handback process was complex, involving multiple parties and a range of legal, contractual and property matters that had accumulated over a quarter of a century. Our team’s longstanding familiarity with the project and our expertise in PFI arrangements meant we were well placed to advise the Welsh Government through each stage of that process."

James Egan, Real Estate Partner at Blake Morgan, said: “Our involvement with Bute Avenue extended well beyond the core PFI agreement. Over the years, we supported the Welsh Government on several property transactions linked to the project and its surrounding area, helping to shape the longer-term vision for Callaghan Square and the Metro infrastructure that will benefit Cardiff for generations to come. It has been a privilege to contribute to that legacy.”