BOISE, Idaho, and HOUSTON, May 8 /PRNewswire-FirstCall/ -- Washington Group International announced today it has received a combined Notice of Award/Notice to Proceed from the Metropolitan Transit Authority of Harris County, Texas (METRO) to deliver project development, preliminary engineering, and early construction for the first phase of a major rapid transit expansion project in Houston. Signing of the $77 million contract is expected this week.
Washington Group was selected in late January, pending successful negotiations, to serve as facility provider for the design, construction, operation, and maintenance of 20 miles of guided rapid transit in four corridors and an intermodal terminal in Houston's urban core. The multiphase project, estimated at more than $1 billion, is part of METRO Solutions 2025 Plan, a comprehensive regional transit system plan to help solve the Greater Houston area's traffic congestion and air-quality problems.
In phase one, approved by the METRO Board today, Washington Group will develop a detailed project schedule and finance plan within a fixed capital budget; complete preliminary engineering and design; and begin early construction activities. The four new corridors will complement the existing Main Street Corridor light rail system and add 34 new transit stations throughout Houston.
Phase two final design and construction, led by Granite Construction, is expected to commence in early 2008.
Washington Group expects to perform vehicle procurement and operation and maintenance of the corridors and terminal under separate long-term agreements.
"METRO has embarked upon an ambitious transit expansion program to better serve its community with improved mobility, economic development opportunities, and revitalized neighborhoods. Washington Group is excited about applying the expertise we've gained on other major transit projects to help METRO achieve its goals," said Greg Therrien, president of Washington Group's Infrastructure Business Unit. "This project will help meet Houston's urban core transportation needs, while serving as the backbone to support future system expansion."
Washington Group's experience with guided rapid transit systems includes design, engineering, construction, operation, and maintenance of the 18-mile Hudson-Bergen light rail system in New Jersey; design and construction of 20 miles of light rail in Los Angeles; construction management of a 10-mile bus rapid transit project in downtown Cleveland; and the design of the San Fernando Valley (Calif.) bus rapid transit system. The California Transportation Foundation selected the San Fernando project as 2006 Project of the Year.
Washington Group International provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. Headquartered in Boise, Idaho, with more than $3 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources. For more information, visit http://www.wgint.com/.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2006.
