13th Dec 2005 07:00
Balfour Beatty PLC13 December 2005 13 December 2005 BALFOUR BEATTY REACHES FINANCIAL CLOSE FOR £63 MILLION ====================================================== SOUTH TYNESIDE PFI STREET LIGHTING CONTRACT ========================================== Balfour Beatty, the international engineering, construction and services group,announces today that Connect Roads South Tyneside, a specific vehicle within itsspecialist PFI roads concession company, Connect Roads has reached financialclose on the £63 million PFI street lighting contract for South TynesideCouncil. The contract is for a 25-year term. Under the contract, Balfour Beatty will takeresponsibility for the whole of South Tyneside's street lighting and highwayssigns services. Balfour Beatty's power line and cabling subsidiary, BalfourBeatty Power Networks, will carry out the work which will involve thereplacement of 80% of the existing lighting infrastructure over the first fiveyears of the contract and also includes providing lighting to previously unlitareas such as back lanes and footpaths. Commenting on the award today, Balfour Beatty Chief Executive, Ian Tyler, said: "We look forward to working with South Tyneside Council on a programme whichwill improve road safety, reduce crime and enhance the local environment. Thisis the 22nd concession won by Balfour Beatty Capital Projects in the PFI marketand brings our total committed equity investment in this market to £275million." Leader of South Tyneside Council, Councillor Paul Waggott, said: "We are delighted to have secured this deal, which will have a major impact onpeople's lives. It will allow us to light previously unlit back lanes andfootpaths, which will help us to reduce the fear of crime and deter criminalacts such as vandalism. This project is further evidence of our vision totransform the Borough for the benefit of all our residents. We look forward toworking with Balfour Beatty." Balfour Beatty won the £100 million, 25-year PFI contract for street lighting inSunderland in 2003. Under this 25-year contract, some 5,000 new lighting columnsare being installed and 45,000 lighting columns and 13,500 lighting signs arebeing maintained. ENDS Enquiries to: Tim SharpTel: 020 7216 6884 www.balfourbeatty.com Notes to Editors: 1. Connect Roads, a 100% owned part of the Balfour Beatty Group has four major PFI road concessions. These are the A30/A35 in Devon and Dorset, the A50 in Derbyshire, the A1/M1 Link in Yorkshire and the M77 in Scotland. Overall Balfour Beatty has £63 million of investment in Connect Road's concession projects. 2. Balfour Beatty's extensive portfolio of term maintenance contracts includes work on motorways, trunk and minor roads for the Highways Agency and a number of county councils. 3. Balfour Beatty is a world-class engineering, construction and services group, well positioned in infrastructure markets which offer significant growth potential. Its partnerships with public and private customers generate secure, sustainable income. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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