Re Contract

RNS Number : 4461H

Balfour Beatty PLC

05 November 2008

 



5 November 2008 

BALFOUR BEATTY  WINS £335 MILLION OF NEW

CONTRACTS IN HONG KONG AND THE UNITED STATES

Balfour Beatty, the international engineering, construction, services and investment Group today announces contract wins in Hong Kong and the United States totaling £335 million.

Gammon Construction, Balfour Beatty's joint venture company in South East Asia, has been awarded a HK $2.82 billion (£230 million) contract by the Hong Kong Director of Highways for the reconstruction and improvement of a 6.8 kilometre section of the Tuen Mun road.  The contract involves the re-construction and re-alignment of Tuen Mun road between Tsuen Wan and Tsuing Lung Tan to expressway standards. The works include the widening of traffic lanes to expressway standard width, provision of hard shoulders and verges, construction of highway structures and associated environmental mitigation measures, drainage works, slope works and landscaping works.

Balfour Beatty Communities, Balfour Beatty's US PPP subsidiary, has reached financial close for an initial five-year $168 million (£105 million) development period for a privately financed military housing project at Fort Jackson, South Carolina. The initial five-year development period is part of a 50-year PPP concession for the design, development, construction, renovation and maintenance of 850 housing units at Fort Jackson, and is the company's 16th such PPP concession.

Commenting on the contract awards today, Balfour Beatty Chief Executive, Ian Tyler said:

'These major contract awards further enhance our leading position in the construction markets of Hong Kong and Singapore and mark another success for Balfour Beatty Communities which we acquired in May this year.

Infrastructure investment in Hong Kong and Singapore is accelerating, particularly in the transport sector and Gammon's position as the largest construction company in Hong Kong and a major player in Singapore provides exciting potential for further growth.

Balfour Beatty Communities has performed to expectations since we acquired it earlier this year and has closed three PPP military accommodation deals in the last four months at a total value approaching $800 million and is in exclusive negotiation relating to a further family housing project.'

-ENDS-

Enquiries: 

Tim Sharp
Tel: [phone]

www.balfourbeatty.com 

Notes to Editors:

Gammon Construction

1.	Gammon Construction is 50% owned by Balfour Beatty and 50% by Jardine Matheson, the major Asian trading and manufacturing group.
2.	Gammon is the leading contractor in Hong Kong and it has annual revenues of approximately £500 million, over 2,000 employees and an order book at the end of September approaching £1 billion.
3.	In January, it was awarded the contract for the design and construction of the new Central Government Complex for Hong Kong - known as the Tamar Development Project. The contract, which will be executed in joint venture with Hip Hing Construction, is worth over £400 million (HK $4.94 billion) and involves the design and construction of the new Central Government and Legislative Council Complexes.
4.	In August, Gammon Capital, the Group's PPP concession company in South East Asia reached financial close on the £100 million Institute of Technical Education PPP project in Singapore.

Balfour Beatty Communities

1.	Balfour Beatty Communities, LLC (formerly known as GMH Military Housing) 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 has been a leader in the military housing industry, and provides services to members of the US military and their families residing on or near bases located in 23 states and Washington, DC. Currently based in Newtown Square, PA, the company employs approximately 1,000 people nationwide.
2.	The Company is partnered with The Department of the Army for the military family housing privatisation projects at:  Fort Stewart, Hinesville, Georgia and Hunter Army Airfield, Savannah, Georgia  Walter Reed Army Medical Center, Washington, DC and Fort Detrick, Frederick, Maryland  Fort Hamilton, Brooklyn, New York  Fort Carson, Colorado Springs, Colorado  Fort Gordon, Augusta, Georgia  Carlisle Barracks, Carlisle, Pennsylvania and Picatinny Arsenal, Dover, New Jersey  Fort Eustis, Newport News, Virginia and Fort Story, Virginia Beach, Virginia  Fort Bliss, El Paso, Texas and White Sands Missile Range, Las Cruces, New Mexico  Fort Leonard Wood, Pulaski County, Missouri  Fort Jackson, Columbia, South Carolina
3.	In addition, Balfour Beatty Communities partnered with the Department of the Army for the privatisation of Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters at Fort Stewart, Hinesville, GA.
4.	The Company partnered with the Department of the Navy for its Navy Northeast Region Project, covering eight Naval bases in Maine, Rhode Island, Connecticut, New York and New Jersey, as well as the Navy Southeast Region Project covering eleven Naval bases in South Carolina, Florida, Georgia, Mississippi and Texas.
5.	With the Department of the Air Force, Balfour Beatty Communities is partnered for the military housing privatisation projects at Vandenberg Air Force Base, Lompoc, California and the Air Education and Training Command (AETC) Group I Project, consisting of four Air Force bases in Oklahoma, Arizona, Texas and Florida and the Air Mobility Command (AMC West) Project, consisting of three Air Force Bases in Washington, California and Oklahoma.

 

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