10th May 2005 07:00
Balfour Beatty PLC10 May 2005 10 May 2005 BALFOUR BEATTY WINS £300 MILLION CLEAN WATER, SEWERAGE AND ELECTRICITY CONTRACT FOR UNITED UTILITIES ==================== Balfour Beatty, the international engineering, construction and services group,announces today that it has been awarded a new five-year contract by UnitedUtilities for clean water, wastewater and electricity works under theorganisation's new AX4 Capital Investment Programme. United Utilities wascreated in November 1995 from the merger of North West Water and Norweb. Itsprincipal activities are managing and operating the regulated electricitydistribution, water and wastewater networks in north-west England. The highly-innovative, five-year contract, which will run from July 2005, islikely to be worth up to £300 million over its initial five-year term and has anoption for a further five-year extension. Commenting on the award today, Balfour Beatty Chief Executive, Ian Tyler, said: "We are very pleased to have been awarded this unique new contract which extendsthe excellent relationship we have built with United Utilities over the years.By combining our expertise in power, gas and water engineering, we are able tooffer United Utilities a range of skills and experience which exactly matchesthe requirements of their new investment programmes." United Utilities' Steven Beaumont, who has overall responsibility for thecompany's procurement and investment delivery process, said: "I am delighted to be working with partners that have such a breadth ofexpertise and I am confident that our new relationships and collaborative way ofworking wi11 help us achieve the ambitious goals we have set ourselves." Under the contract, Balfour Beatty will undertake clean water and wastewaterworks including design and construction of network infrastructure, renewals andrehabilitation and planned and reactive network maintenance; it will also beresponsible for electrical works including cable laying and jointing of aboveand below ground infrastructure. Under other current contracts for United Utilities, Balfour Beatty is involvedin a range of activities including mechanical and electrical pumping stationmaintenance and minor capital projects. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors---------------- 1. Balfour Beatty Utilities provides a complete asset maintenance and replacement service for the gas, clean water and wastewater sectors, including investing in design, construction and commissioning. 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. 2. Balfour Beatty Utilities has been very successful in securing long-term service contracts following last year's gas and water sector regulatory reviews. Over the last three months, it has been awarded: - the £380 million alliance contract to replace gas mains in the Greater Manchester area for Transco, in conjunction with Balfour Beatty Management - the £150 million contract to deliver Anglian Water's AMP 4 capital expenditure programme over the next five years - the £60 million, five-year contract to deliver Severn Trent Water's AMP 4 programme. Amongst its recent successes is the £40 million contract for a 100 km transmission line in East Anglia and the East Midlands, the largest single overhead line refurbishment contract ever awarded in the UK. 3. Balfour Beatty Power Networks is the UK's leading specialist in designing, constructing and refurbishing power transmission and distribution networks for the power supply industry and industrial customers. 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:
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