Balfour Beatty PLC
13 July 2000
THIRD PRIVATELY FINANCED HOSPITAL FOR BALFOUR BEATTY
====================================================
FINANCIAL CLOSE FOR £225 MILLION UNIVERSITY COLLEGE LONDON HOSPITAL ADDS NINTH
MAJOR CONCESSION TO BALFOUR BEATTY'S PFI PORTFOLIO
Balfour Beatty, the international engineering, construction and services
group, announces today that, as part of Health Management (UCLH), a consortium
of Balfour Beatty, AMEC and Building and Property Group, it has reached
financial close for the £225 million University College London Hospital PFI
project.
The main part of the 669-bed hospital project is due for completion in 2005,
with the remaining facility becoming available in 2008.
Commenting today, Mike Welton, Balfour Beatty Chief Executive, said:
'We are delighted to add this important project to our growing PFI portfolio.
Balfour Beatty was one of the first and is amongst the most successful
entrants into the privately financed infrastructure market. Our portfolio is
an increasingly important part of our business and represents significant
embedded value for the group.'
Balfour Beatty has some £53 million of equity committed to its privately
financed infrastructure project portfolio, which has generated over £1 billion
of construction and services work for the group, much of it in long-term
future contracts.
Enquiries to:
Tim Sharp
Balfour Beatty plc
Tel: 020 7629 6622
www.balfourbeatty.com
Notes to Editors
----------------
1. In the healthcare sector, Balfour Beatty already has two concessions
through Consort - the Edinburgh Royal Infirmary and the North Durham Hospital.
The total construction value of these two projects is £279 million, with more
than £330 million accruing through long-term asset management contracts.
Balfour Beatty's equity contribution to its three hospital projects is
£24 million.
2. The Group's prototype involvement in private finance came through its
25.5% interest in Barking Power Station, a project which has continued to
produce substantial profits since its opening in 1995 and which was built by a
consortium led by Balfour Beatty.
3. Also in the power sector, Balfour Beatty has been, since April 1999,
responsible for the maintenance, operation and development of London
Underground's high-voltage power distribution system, as a member of the
Seeboard Powerlink joint venture. The concession company is served by PADCo
(a joint venture with Seeboard and ABB, in which Balfour Beatty has a 25%
stake), which takes practical responsibility for the £98 million, five-year
initial capital works and the associated maintenance. Dundee Energy
Recycling, a joint venture with Macquarie Infrastructure Group and Dundee City
Council, has recently commissioned a £35 million-plus energy-from-waste plant
in Dundee.
4. Balfour Beatty has three road concessions - the A1/M1 Link in Yorkshire
through Yorkshire Link, and the A50 in Derbyshire and the A30/A35 in Devon and
Dorset through Connect. The equity investment in this sector is £16 million,
the construction value was £384 million with associated service contracts of
approaching £100 million.
5. In education, Balfour Beatty has preferred bidder status for the
maintenance of Stoke area schools (a contract valued at £194 million over 25
years) and is bidding or prequalifying for a number of other opportunities in
this fast-growing sector.
6. Balfour Beatty recently reached financial close on the £80 million
Aberdeen Waste Water project, a 30-year concession for the finance, design,
building, operation and maintenance of four water treatment plants in the
north of Scotland.
7. As part of the Metronet consortium, Balfour Beatty has prequalified for
both the deep line concessions for the London Underground PPP and for the sub-
surface lines.
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