Gammon Construction wins contract for Harbour Area Treatment Scheme in Hong Kong

31 July 2009

Balfour Beatty, the international engineering, construction, investment and services Group, announces today that Gammon Construction, the market-leading infrastructure contractor in Hong Kong in which the Group has a 50% shareholding, has been awarded a HK$3.76 billion (£300 million) contract by the Hong Kong Government for the construction of a sewage conveyance system.

The contract is the largest single civil engineering contract ever won by Gammon.

Work will comprise construction of three deep tunnels, totalling 12 kilometres in length and up to 165 metres in depth, which will form a main part of the Harbour Area Treatment Scheme (HATS) Stage 2A. The tunnels will collect and convey preliminarily treated sewage along the north of Hong Kong Island and under Victoria Harbour to Stonecutters Island for chemical treatment.

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

“We are delighted to have been selected to carry out this important infrastructure project. Gammon’s advanced capabilities, technological standards and expertise in tunnelling work, including work on HATS Stage 1, were all factors in securing the contract.”

To enhance safety on the project, a specialised tunnel personnel tracking system will be developed to enhance the working environment and electrically powered equipment will be used for the tunnelling operation.

The project is due for completion in 2014.

Gammon Construction is 50% owned by Balfour Beatty and 50% by Jardine Matheson, the major Asian trading and manufacturing group. Gammon is Hong Kong’s largest and most successful contractor with over 2,000 employees.


Analyst/media enquiries:

Duncan Murray
Balfour Beatty plc
Tel: 020 7216 6865

Notes to Editors:

Gammon’s current projects include the £120 million (HK$1.5 million) Hennessy Centre redevelopment, the £400 million (HK $4.94 billion) Tamar Development Project in joint venture with Hip Hing Construction for the design and construction of the new Central Government Complex for Hong Kong, the £100 million Gammon Capital Institute of Technical Education PPP project in Singapore, the £190 million Hong Kong-Shenzhen Western Corridor (Hong Kong section), the £149 million Deep Bay Link Northern Section, the £128 million Nam Wan Tunnel, the £40 million Landmark renovation and the £94 million Mandarin Oriental renovation.

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 needs.

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