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Award of Contract

18th Oct 2006 10:31

Scottish & Southern Energy PLC18 October 2006 AWARD OF £5M CONTRACT TO EASTERN CONTRACTING Eastern Contracting, the operation acquired by Scottish and Southern Energy plc("SSE") in 2005 in a transaction worth around £2m, has won the second phase ofan infrastructure contract at Colchester Garrison worth almost £5m. EasternContracting is a fully-integrated part of SSE's Contracting Group. The work is part of the £2 billion Colchester Garrison Redevelopment - one ofthe UK's largest PFI (Private Finance Initiative) projects to date. In 2004, the Ministry of Defence employed RMPA Services Plc, a consortium madeup of Sir Robert McAlpine Ltd, HSBC Infrastructure, Atkins and Sodexho UK, tocarry out a 35-year PFI contract aimed at modernising the garrison. Themodernisation involves the two-phase construction of a new garrison facility,refurbishment of the existing buildings and demolition of redundant garrisonbuildings. Phase One of Eastern Contracting's work - the provision of the gas, water andelectricity infrastructure - was carried out in 2005. Phase Two has beenseparated into electrical and mechanical packages, with Eastern Contractingdoing the electrical infrastructure. Ian Marchant, Chief Executive of SSE, said: "Our priorities for our Contracting businesses are to ensure there is goodperformance in long-term contracts, with a view to securing as much 'repeat'business as possible. In this context, this is a very significant contract forEastern Contracting. It is particularly encouraging to have been awarded thissecond phase of construction work as it demonstrates the success of our work inthe first phase." Enquiries to:Scottish and Southern EnergyAlan Young, Director of Corporate Communications 0870 900 0410Denis Kerby, Investor and Media Relations Manager 0870 900 0410 This information is provided by RNS The company news service from the London Stock Exchange

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