Re Contract

RNS Number : 3413M

Balfour Beatty PLC

28 January 2009

 



28 January 2009

BALFOUR BEATTY JOINT VENTURE SELECTED AS A PREFERRED PROVIDER 

FOR NATIONAL GRID IN NEW ENGLAND

Joint venture selected to support delivery 

of National Grid's US electricity transmission capital investment programme

Balfour Beatty, the international engineering, construction, services and investment Group, announces today that it has been selected as a preferred provider, in joint venture, to support the delivery of National Grid's U.S. electricity transmission capital investment programme in New England.  

The five-year contract for the design and build of substations and transmission lines in the New England region (Massachusetts, Rhode Island and New Hampshire) will be carried out by the New Energy Alliance, a joint venture between Balfour Beatty and MJ Electric, a Quanta Services company. The contract covers overhead line and sub-station electrical work for new build projects.

The total value of the capital projects for both New England and for New York State, where National Grid has selected another joint venture partner for transmission and sub-station works, is approximately $1.7 billion.  

Contract award is conditional on reaching agreement on commercial terms and is expected to be finalised by 1 April 2009. There is also an option to extend the Alliance for a further three years after the initial five-year period.

Commenting on the award, Balfour Beatty Chief Executive Ian Tyler said:

'We are delighted to have been selected to play a major role in National Grid's significant capital programme in the United States. We look forward to working in partnership with National Grid and deploying our integrated expertise and resources, in joint venture with MJ Electric, to deliver this important programme.'

Masheed Saidi, National Grid's Executive Vice President and Chief Operating Officer, U.S. Transmission, said:

'These contracts will help us reinforce the backbone of our electricity grid, so we continue to provide safe and reliable service to customers for years to come. Given the magnitude of our investment programme, we needed to look at innovative approaches to secure the resources and deliver the programme. This approach, as well as increasing the size of our internal team, gives us the resources we need to successfully meet the challenges of delivering our investment efficiently, effectively and safely.' 

Balfour Beatty's involvement will be led by Balfour Beatty Utility Solutions, the Group's specialist electricity, gas and water utilities engineering and construction business, and Balfour Beatty Management, the Group's professional and technical services arm, supported by Balfour Beatty Infrastructure Inc., the Group's US-based civil engineering and infrastructure business.

National Grid is one of Balfour Beatty's key infrastructure clients in the UK. In 2005 Balfour Beatty signed a partnership contract with National Grid for the eight-year Greater Manchester Alliance gas mains network contract worth £380 million. In 2007, Balfour Beatty also signed a contract for a five-year alliance, likely to be worth approximately £550 million, to upgrade and develop the electricity transmission network in the eastern half of England.  

ENDS

Analyst/media enquiries:    

Duncan Murray

Tel: [phone]

www.balfourbeatty.com

Notes to Editors:

1.	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 needs.
2.	Balfour Beatty's businesses in the United States include Balfour Beatty Construction US, Balfour Beatty Communities, Balfour Beatty Infrastructure Inc. and Heery.
3.	M.J. Electric and Quanta Services: M. J. Electric, LLC., a Quanta Services Company (NYSE: PWR) specialises in electrical construction and maintenance. Quanta is a leading specialised contracting services company delivering infrastructure network solutions for the electric power, natural gas, telecommunications and cable television industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. Quanta has the manpower, resources and expertise to complete projects that are local, regional, national or international in scope. More information can be found at www.quantaservices.com.

 

END

 

 

CNTEAKFXALFNEFE