Statement re Barking Power

Balfour Beatty PLC
31 March 2005


31 March 2005



        BARKING POWER SETTLEMENT AGREED FOLLOWING TXU EUROPE INSOLVENCY
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Balfour Beatty to recognise £17 million post-tax gain following initial dividend
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Balfour Beatty, the international engineering, construction and services group,
announces today that Barking Power Ltd, in which it has a 25.5% equity interest,
has agreed a claim for damages for breach of contract of £179.3 million
following TXU Europe's entry into administration in November 2002.

TXU Europe had both an equity interest in and a power purchase agreement with
Barking Power Ltd prior to its insolvency.

Barking Power Ltd has received a first dividend of £112.3 million and it is
expected that further distributions will take place later this year and in the
first quarter of 2006.

The initial dividend is expected to generate a post-tax gain of £68 million, of
which Balfour Beatty's share is £17 million.

                                      ENDS

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



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