7th Jun 2006 09:01
Balfour Beatty PLC07 June 2006 7 June 2006 BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR NORTHERN GAS NETWORKS =================================================================== UTILITIES CONTRACT WITH A POTENTIAL VALUE OF OVER £700 MILLION ============================================================== Balfour Beatty, the international engineering construction and services groupannounces today that its specialist subsidiary, Balfour Beatty Utilities, hasbeen appointed preferred bidder for the gas mains replacement contract forNorthern England by Northern Gas Networks. The total value of the seven-year contract, with consortium partner Morgan Est,will be approximately £420 million. A potential five-year extension option islikely to be worth a further £300 million. Northern Gas Networks, which boughtthe region's 36,000 km gas mains network from National Grid in 2005, employsUnited Utilities to operate the system. Commenting on the award today, Balfour Beatty Chief Executive Ian Tyler said:"We are delighted to have been awarded preferred bidder status for thiscontract. The award will give Balfour Beatty a leading position in gas to add toits existing leadership in the clean water and electricity sectors." Jamie Major, United Utilities' Head of Commercial said:"This is real progress for United Utilities and the gas industry in the North ofEngland. The selected partners are major, well-respected companies withexperience of this type of work and of this form of contract agreement. Theyhave all worked successfully on contracts with United Utilities before and havean excellent track record." The contract will commence on 1st July 2006. The scope of work involves mainsreplacement, including diversions, reinforcements and connections in NorthernEngland. The contract area covers 6.5 million people in the area between Berwickin the North East, Carlisle in the North West and Yorkshire. The programme willinvolve replacing more than 500km of pipes each year. The award follows the recent news that Balfour Beatty had won the £115 millioncontract to build the Northern Ticket Hall, a key component of the Kings Crossredevelopment and regeneration programme. In addition to this contract,programme and project management for the whole scheme is being carried out byBalfour Beatty Management, the professional and technical services arm of thegroup. Balfour Beatty Management's leadership has been a significant factor in thesuccessful delivery of the new London Underground Western Ticket Hall and othernew underground station operating facilities at King's Cross St Pancras forLondon Underground. The opening of these new facilities, which form part of thewhole scheme, was marked by a formal ceremony with the Mayor of London and theSecretary of State for Transport on 25th May. The whole scheme is scheduled tobe complete in 2010. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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