27th Jan 2009 16:47
27 January 2009
AMEC plc
AMEC consortium awarded contract by US National Grid for share of US$1.7 billion programme of work
The NorthEast Power Alliance (NEPA), a consortium comprising international engineering and project management company AMEC plc, US utility contractor Michels Corporation and US electrical engineering firm Vanderweil Engineers, has been awarded one of two major contracts to support the delivery of National Grid's long-term US transmission US$1.7 billion capital investment programme in New York and New England.
The contracts are expected to be finalised by 1 April 2009 and will run for five years initially. The value of the contracts to the consortium partners has not been disclosed. AMEC's share was included in order book figures announced in the group's year end trading update on 14 January 2009, at which time it was not possible to disclose further details.
National Grid owns more than 8,600 miles of electricity transmission lines and approximately 1,000 substations in the region. NEPA will design and build substations and transmission lines on National Grid's network primarily in upstate New York. A separate consortium will undertake similar work in New England.
The contracts are notable because they take a collaborative alliance approach in which the project partners and National Grid form an integrated team that shares common goals and resources, an approach adopted successfully by AMEC and National Grid on major infrastructure programmes in the UK.
"This contract reinforces our long-term relationship with National Grid and is a major step forward in expanding our power-related services internationally," said Didier Pfleger, Chief Operating Officer of AMEC's Power and Process division. "We will transfer our industry-leading management skills to this work in the US to ensure we achieve the same high level of safe and sustainable delivery as achieved with National Grid in the UK."
Masheed Saidi, National Grid's executive vice president and chief operating officer, US Transmission, said, "These contracts will help us reinforce the backbone of our electricity grid, so we continue to provide safe and reliable service to customers for years to come. Given the magnitude of our investment programme, we needed to look at innovative approaches to secure the resources and deliver the programme. This approach, as well as increasing the size of our internal team, gives us the resources we need to successfully meet the challenges of delivering our investment efficiently, effectively and safely."
NEPA is an alliance to join the global leaders of power transmission and energy distribution together to create a professional coalition committed to serving the diverse and expanding needs of the power industry. NEPA brings together a unique capability focused on delivering superior performance in safety, optimized design, innovative engineering and efficient construction in a long-term collaborative relationship, all of which meet National Grid's aim to deliver their investment efficiently, effectively and safely. Details on each of the alliance partners are set out at the end of this announcement.
Contacts:
AMEC plc +44 (0) 20 7539 5800
Sue Scholes, Director of Communications
Neil Jamieson, Director of Investor Relations
Media:
Lauren Gallagher, +1 602 757 3211; lauren.gallagher@amec.com
Frank Stokes, +44 (0)1452 872121; frank.stokes@amec.com
Notes to Editors
AMEC (LSE: AMEC) is a focused supplier of high-value consultancy, engineering and project management services to the world's energy, power and process industries. With annual revenues of around £2.3 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ some 23,000 people in more than 30 countries globally. For further information please see http://www.amec.com/.
AMEC has some 3,700 employees in 61 offices across the United States.
In the UK, AMEC leads National Grid's award-winning Gas Distribution Alliance for the M1 Corridor and is a leading member of the Electricity Alliance, a four-way partnership working to support the safe, efficient replacement, renewal and augmentation of overhead lines and cables for Wales and the West of England - both are collaborative-style contracts.
National Grid is an international energy delivery company. In the US, National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the north-eastern US, serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers. National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high pressure gas transmission system in Britain and its distribution business delivers gas to 11 million homes and businesses. www.nationalgrid.com
R.G. Vanderweil Engineers, LLP, specialises in mechanical, electrical, and plumbing systems engineering and construction/commissioning support for buildings, central heating and chiller plants, power generation, and transmission and distribution projects. Based in Boston, the 400-employee firm also has offices in Las Vegas, New York, Philadelphia, Princeton and Washington, DC. For more information, visit www.vanderweil.com
Michels Corporation is a diversified utility, engineering, design and construction contractor with critical expertise in linking systems for energy, communications, transportation and distribution. Based in Brownsville, Wisconsin, Michels has more than 50 years of experience as a full-service provider works on projects throughout North America. For more information, visit www.michels.us/michels-us.com
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