Re Contract

RNS Number : 7467V

Balfour Beatty PLC

16 July 2009

 



16 July 2009

FINANCIAL CLOSE FOR £176 MILLION CARLISLE NORTHERN 

dEVELOPMENT ROUTE PPP SCHEME

Balfour Beatty, the international engineering, construction, services and investment Group, announces today that its wholly-owned subsidiary, Connect CNDR, has reached financial close for the £176 million Carlisle Northern Development Route (CNDR) public private partnership (PPP) concession contract for Cumbria County Council.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

'We are delighted to have reached financial close on the CNDR contract.  This is an important piece of infrastructure which will take traffic away from Carlisle city centre and improve transport links between West Cumbria, Scotland and the North East of England.

'We have significant experience of delivering PPP contracts in the UK using our construction businesses in support of our concession companies. We have adopted this successful approach for this contract and look forward to working with Cumbria County Council.'

The CNDR contract is a 30-year concession during which time Connect CNDR will be responsible for the design and construction of an 8.25km two-way single carriageway road from the M6 Junction 44 to the A595 southwest of Carlisle and the management, operation and ongoing investment in approximately 150km of other existing roads in Cumbria.

Balfour Beatty will undertake the design and construction of the new road and also provide the whole life operation and maintenance services. 

Balfour Beatty will invest approximately £11 million of equity in the project.

ENDS

Analyst/media enquiries to:

Duncan Murray

Tel: [phone]

www.balfourbeatty.com

Notes to Editors:

1.	Balfour Beatty is a UK leader in road building and widening schemes, both for the Highways Agency and for local authorities, and a leading road manager and maintainer. Current schemes include the M25 widening between junctions 16 and 23 and Junctions 27 and 30, A3 Hindhead tunnels, A421 in Bedfordshire, A1(M) between Bramham and Wetherby in Yorkshire and A46 Newark to Widmerpool.  Balfour Beatty was responsible for the construction of several sectors of the original M25 and completed the widening of junctions 12-15 adjacent to Heathrow Airport on time and on budget in December 2005 and the M1 junctions 6a -10, completed early 2009.  Balfour Beatty undertakes a full range of civil engineering contracts for local authorities. It is currently working on Norwich Northern Distributor Road ECI contract for Norfolk County Council, Exhibition Road interim traffic management and streetscape projects for the Royal London Borough of Kensington and Chelsea, Thornton to Switch Island Link Road in Merseyside for Sefton Council and the M74 Completion project for Glasgow City Council.  Balfour Beatty has significant investment interests in six PFI roads schemes with long-term concessions. These are the Carlisle Northern Development Route, M25 DBFO, the M1/A1 Link in Yorkshire, the A30/A35 in Devon and Dorset, the A50 in Derbyshire and the M77/GSO in Scotland.  It is also a leading provider of highway maintenance and asset management. It is responsible for the Highways Agency Area 2 and has recently been re-appointed for Area 4. It is responsible for local authority roads in North Yorkshire, Essex, the North West of Scotland, Royal Windsor & Maidenhead, Wokingham and Westminster.
2.	Balfour Beatty has a substantial existing investment portfolio, largely through the UK PPP/PFI programme. This portfolio consists of long-term concessions in: Nine major hospitals Eight major schools schemes in the UK and a technical education centre in Singapore Six roads schemes and three street lighting projects The London Underground power system A waste water scheme A coastal defence pathfinder PPP In addition, Balfour Beatty owns, or has stakes in, a number of non-PPP assets: Barking Power Station (non-PPP) Exeter International Airport (non-PPP) Blackpool International Airport (non-PPP) In the US, Balfour Beatty Communities is responsible for the development, renovation, operation and management of military privatisation housing projects for the US Departments of the Army, Navy and Air Force. The company is a leader in the military housing industry and provides services to members of the US military and their families residing on or near 44 bases located in 20 states and Washington, DC.
3.	Balfour Beatty is a world-class engineering, construction, services and investment business, well-positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer need.

 

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