LONDON (dpa-AFX) - Infrastructure group Balfour Beatty Plc (BBY.L) Thursday said it has secured a five-year extension to its existing contract with electricity and gas utility National Grid Plc (NGG, NG.L) in a deal worth up to 750 million pounds. The companies had formed the Electricity Alliance East, or EAE, partnership five years ago to secure long-term stability of much of the UK network.
As per the agreement, Balfour Beatty has to maintain and upgrade the UK's electricity transmission network. The contract involves design, programme management, construction and technical support for National Grid's electricity network.
Ian Tyler, chief executive of the company said, 'National Grid is one of our longest held relationships and we are delighted at their decision to extend the long-term partnership with Balfour Beatty. This further reinforces a strong, strategic alliance bringing continuing value as well as ongoing certainty to a core element of the UK's infrastructure.'
Balfour Beatty provides professional services, construction services, support services and infrastructure investments. The company's key infrastructure markets include transportation, social infrastructure, utilities and commercial.
In December end, the company, in an alliance with Thiess and Sinclair Knight Merz, won a contract worth 535 million pounds for works on the Regional Rail Link project in Melbourne, Australia.
In the same month, Balfour Beatty was awarded, in a joint venture with CLG Developments Ltd, a 414 million pounds contract by Bord Gais Networks in the Republic of Ireland.
In addition, the company was appointed preferred bidder for 500 million pounds Gloucestershire Residual Waste Project in joint venture with Urbaser. The 28-year PPP project involves the design, build and operation of an energy-from-waste facility for Gloucestershire County Council.
BBY.L is currently trading at 277 pence, up 0.11 percent, on a volume of 38 thousand shares on the LSE.
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© 2012 AFX News
