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Balfour Beatty appointed preferred bidder for £250 million PPP Coventry street lighting contract

26 February 2010

Balfour Beatty, the international infrastructure Group, announces today that it has been appointed as preferred bidder for the £250 million PPP street lighting contract by Coventry City Council.

The 25-year concession will involve the design, installation and maintenance of 33,000 street lights and 6,000 signs and bollards, during the five-year capital investment period, and the ongoing maintenance of all existing and new equipment.

Balfour Beatty will invest equity of approximately £6.3 million into the concession.

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

"We are delighted to have been selected as preferred bidder for this contract. We look forward to working in partnership with Coventry City Council to transform the city's street lighting. We will develop infrastructure within the area to enable us to deliver the contract and will create local employment opportunities."

The contract will deliver a number of technical innovations which will result in a 38% energy reduction across Coventry City Council's stock, including a centrally-controlled dimming system to allow light levels to be reduced when streets are quiet.

Other features of the contract will include:

This is Balfour Beatty's fourth PPP street lighting concession, with existing projects in Sunderland, South Tyneside and Derby proceeding successfully.

ENDS

Analyst/media enquiries:

Duncan Murray
Balfour Beatty plc
Tel 020 7216 6865

www.balfourbeatty.com

Notes to Editors:

  1. Balfour Beatty also has a significant portfolio of non-PPP street lighting maintenance contracts with Wokingham Borough Council, Bracknell Forest Council, Somerset County Council and Wiltshire County Council as well as responsibility for street lighting maintenance within its North Yorkshire County Council and Westminster City Council highways maintenance contracts.

  2. Balfour Beatty has a substantial infrastructure investments portfolio, largely through the UK PPP/PFI programme. This portfolio consists of:

    1. Nine major hospitals
    2. Ten major schools schemes in the UK and a technical education centre in Singapore
    3. Six roads schemes and three street lighting projects, in addition to Coventry at preferred bidder stage
    4. The London Underground power system
    5. A waste water scheme
    6. A coastal defence pathfinder PPP
    7. Barking Power Station (non-PPP)
    8. Exeter International Airport (non-PPP)
    9. Blackpool International Airport (non-PPP)

    In the US, Balfour Beatty 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. Balfour Beatty is 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 20 states and Washington, DC.

  3. Balfour Beatty is a world-class infrastructure group operating in professional services, construction services, support services and infrastructure investments.

    We work in partnership with our customers principally in the UK, the US, South-East Asia and the Middle East, who value the highest levels of quality, safety and technical expertise.

    Our key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail). We deliver services essential to the development, creation and care of these infrastructure assets including investment, project design, financing and management, engineering and construction, and facilities management services.

    Balfour Beatty employs more than 50,000 people around the world.

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