11th Feb 2005 11:13
Balfour Beatty PLC11 February 2005 11 February 2005 BALFOUR BEATTY WINS £380 MILLION NATIONAL GRID TRANSCO GREATER MANCHESTER ALLIANCE CONTRACT ==================================== Balfour Beatty Utilities and Balfour Beatty Management in eight-year alliance agreement ----------------------------- Balfour Beatty, the international engineering, construction and services group,announces that it has today signed a partnership contract with National GridTransco (NGT) for the Greater Manchester Alliance gas mains network. Thecontract, one of four such regional alliances, will be worth some £48 millionper annum over an initial eight-year term. Under the contract, which carries an extension option of a further five years,Balfour Beatty will act as Alliance partner to support NGT's 30-year gas mainsnetwork replacement and abandonment programme. The contract involves the projectdesign, management and construction work required to replace Victorian metallicgas mains in the Greater Manchester Region with modern pipework systems. It isone of four such contracts let as part of NGT's very significant investmentprogramme to maintain safe and reliable gas supplies across the country. Workwill commence in April 2005. Commenting on the award, Ian Tyler, Balfour Beatty Chief Executive, said today:"We are delighted to have been chosen by National Grid Transco to work inpartnership with them under this innovative contract which utilises BalfourBeatty's design, planning, project management and engineering skills tocomplement NGT's. The range of key skills available, in combination, from withinthe Group is seeing Balfour Beatty winning an increasing share of major businessin the gas, water and electricity utilities." The Greater Manchester Alliance will draw upon the multi-disciplinary skills andexperience of the Balfour Beatty Group. Balfour Beatty Management is the Group'sprofessional services company, which specialises in partnering and programmemanagement. It provides industry-wide skills, integrated with internationalconstruction experience, that deliver infrastructure schemes from concept andassembly through construction to operating and maintenance. Balfour BeattyUtilities provides a complete asset maintenance and replacement service for thegas, water and waste water sectors including investigation, design, constructionand commissioning. Balfour Beatty has been working under a development contract since late lastyear, under which final arrangements have been defined and agreed for the maincontract and for mobilisation up to April 2005. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors---------------- 1. Established in 2003, Balfour Beatty Management comprises some 250 professional staff specialising in programme and project management together with technical management consultancy expertise covering design, engineering, systems, procurement and commercial services. Its current projects include: - Programme management of the Kings Cross Station complex for the Department for Transport - The development of pan-European rail interoperability standards for the European Union - Construction management services for BAA at Heathrow. 2. Balfour Beatty Utilities is a leader in the UK market for utility asset management, maintenance and replacement. It has major long-term contracts with a range of utilities, including Yorkshire Water, Anglian Water, Three Valleys Water, United Utilities and South-West Water. The company was formed in late 2002 by the integration of John Kennedy and Kentons, established utilities contractors acquired by Balfour Beatty in 2001 and 2002 respectively. 3. Balfour Beatty is already a major supplier to NGT through its subsidiary, Balfour Beatty Power Networks (BBPN), the UK's leading specialist in the design and construction of power transmission and distribution networks for the power supply industry and industrial customers. BBPN was recently awarded the UK's largest ever transmission line upgrade contract. 4. 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:
Balfour BeattyNational Grid