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Gammon Construction awarded HK$4.94 billion contract for the new Government Complex in Hong Kong

Balfour Beatty, the international engineering, construction, services and investment group, announces today that Gammon Construction, Hong Kong’s leading construction company, in which Balfour Beatty has a 50% interest, has been 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 HK$4.94 billion (£320 million).  The project involves the design and construction of the Central Government Complex, the Legislative Council Complex, a major recreational open space, two elevated walkways and car parking and ancillary facilities.

The design provides a unifying architectural composition within which each of the principal buildings will have their own unique designs and identity.  The total gross floor area will be approximately 130,000m².  At its height, over 3,000 people will be working on site.  The project is scheduled for completion in 2011.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

"We are honoured and delighted to have been awarded this important project by the Hong Kong government.  The award further emphasises Gammon’s pre-eminent position in the Hong Kong construction market and recognises the company’s outstanding technical strengths and experience."

ENDS

Enquiries to:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors:

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 with annual revenues of approximately £500 million and 2,000 employees.  It is also a leading player in the fast growing markets of Singapore and Macau, where it recently completed the £230 million Venetian Hotel and Casino complex.
   
   
3. Amongst its current major projects in Hong Kong are the Kowloon Southern Link comprising West Kowloon Station and the connecting tunnel valued at £140 million and the £150 million contract to build One Island East, a 70-storey office building on the Eastern Shore of Hong Kong Island.
   
   
4. Between April and August 2007, it secured the £55 million Chinatown Interchange Station project in Singapore, a £33 million project to design and construct infrastructure for the University of Hong Kong and a £50 million project to construct a retail podium and a 42-storey, 2,000-room hotel tower for Venetian Orient.
   
   
5. In November, Gammon Capital became preferred bidder for the £90 million Institute of Technical Education PPP project in Singapore.
   
   
6. 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 need.  Balfour Beatty’s financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities.