Re Contract

Balfour Beatty PLC
04 December 2002


BALFOUR BEATTY JOINT VENTURE APPOINTED PREFERRED BIDDER FOR £130 MILLION M77 PFI
ROAD PROJECT


Balfour Beatty, the international engineering, construction and services group,
announces today that Connect Ltd, a joint venture with Atkins in which Balfour
Beatty is the majority shareholder, has been appointed by the Scottish Executive
and East Renfrewshire and South Lanarkshire Councils as preferred bidder for the
M77 and Glasgow Southern Orbital Design, Build, Finance and Operate contract.
The construction cost is estimated to be approximately £130 million.

Commenting on the award today, Mike Welton, Chief Executive of Balfour Beatty,
said:  'We are delighted to work in partnership with the Scottish Executive and
East Renfrewshire and South Lanarkshire Councils to provide this vital strategic
link between Lanarkshire and Ayrshire.

'With three other major DBFO road projects fully operational, Balfour Beatty is
confirmed as a leading investor in the UK DBFO road market.'

Minister for Enterprise, Transport and Lifelong Learning, Iain Gray, said:  
'This is an important transport project for South West Scotland and demonstrates
what can be achieved by working in partnership.  The project will bring clear
economic and social benefits along the connecting route and today's appointment
means work is on target to have the road ready for traffic by the end of March
2005.'

The scheme covers approximately 25 km of dual trunk road and motorway to form a
strategic link between Lanarkshire and Ayrshire.  The M77 will be extended
southwards to Kilmarnock bypass with the new Glasgow Southern Orbital road,
providing a dual carriageway linking the new section of the M77 with the A726 at
Philipshill.

Balfour Beatty Civil Engineering will assume responsibility for the upgrading of
the 15 km of the A77 to motorway standard and will extend the M77 Ayr Road north
to the dual carriageway at Kilmarnock.  The project also provides the new 9 km
Glasgow Southern Orbital dual carriageway local road between the new motorway
and the A726 trunk road.

The concession period for the operation and maintenance will be for 30 years
following construction which is scheduled to be completed in 24 months after
financial close, which is currently predicted for spring 2003.



Enquiries to:

Tim Sharp
Tel: [phone]
www.balfourbeatty.com



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