Balfour Beatty PLC
13 December 2005
13 December 2005
BALFOUR BEATTY REACHES FINANCIAL CLOSE FOR £63 MILLION
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SOUTH TYNESIDE PFI STREET LIGHTING CONTRACT
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Balfour Beatty, the international engineering, construction and services group,
announces today that Connect Roads South Tyneside, a specific vehicle within its
specialist PFI roads concession company, Connect Roads has reached financial
close on the £63 million PFI street lighting contract for South Tyneside
Council.
The contract is for a 25-year term. Under the contract, Balfour Beatty will take
responsibility for the whole of South Tyneside's street lighting and highways
signs services. Balfour Beatty's power line and cabling subsidiary, Balfour
Beatty Power Networks, will carry out the work which will involve the
replacement of 80% of the existing lighting infrastructure over the first five
years of the contract and also includes providing lighting to previously unlit
areas such as back lanes and footpaths.
Commenting on the award today, Balfour Beatty Chief Executive, Ian Tyler, said:
'We look forward to working with South Tyneside Council on a programme which
will improve road safety, reduce crime and enhance the local environment. This
is the 22nd concession won by Balfour Beatty Capital Projects in the PFI market
and brings our total committed equity investment in this market to £275
million.'
Leader of South Tyneside Council, Councillor Paul Waggott, said:
'We are delighted to have secured this deal, which will have a major impact on
people's lives. It will allow us to light previously unlit back lanes and
footpaths, which will help us to reduce the fear of crime and deter criminal
acts such as vandalism. This project is further evidence of our vision to
transform the Borough for the benefit of all our residents. We look forward to
working with Balfour Beatty.'
Balfour Beatty won the £100 million, 25-year PFI contract for street lighting in
Sunderland in 2003. Under this 25-year contract, some 5,000 new lighting columns
are being installed and 45,000 lighting columns and 13,500 lighting signs are
being maintained.
ENDS
Enquiries to:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com
Notes to Editors:
1. Connect Roads, a 100% owned part of the Balfour Beatty Group has four major
PFI road concessions. These are the A30/A35 in Devon and Dorset, the A50 in
Derbyshire, the A1/M1 Link in Yorkshire and the M77 in Scotland. Overall
Balfour Beatty has £63 million of investment in Connect Road's concession
projects.
2. Balfour Beatty's extensive portfolio of term maintenance contracts includes
work on motorways, trunk and minor roads for the Highways Agency and a
number of county councils.
3. 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 Exchange
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