Press Release

Gammon Construction Limited, a market-leading contractor in Hong Kong in which Balfour Beatty has a 50% shareholding, has been awarded by Cathay Pacific Services Ltd, a HK$4.2 billion (£353 million) air cargo terminal construction contract, in joint venture with Hip Hing Construction Co Ltd.

The contract for the new terminal at Hong Kong International Airport, Chek Lap Kok, will engage a workforce of over 1,000 at the peak of the project’s construction period.

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

"We are delighted to have been awarded this contract to enhance Hong Kong’s status as an international airfreight hub. Along with our joint venture partner, we are committed to the delivery of a terminal of the highest quality, while maintaining excellent standards of safety.”

The new terminal, which is approximately 280,000 square metres, is scheduled for completion in 2013.

Balfour Beatty has been a major player in the development of Chek Lap Kok Airport’s infrastructure having been responsible, as part of a joint venture, for the construction of an £800 million terminal building completed in 1998, and the completion in 2004 of the £40 million East Hall expansion structures and departure hall reconfiguration contract, both for the Hong Kong Airport Authority.

ENDS

Analyst/media enquiries:

Duncan Murray
Balfour Beatty plc
Tel 020 7216 6865
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. Gammon is Hong Kong's largest and most successful contractor with over 2,500 employees.
   
   
2. Gammon Construction is an experienced contractor in the delivery of airport-related projects with recent projects including the £48 million (HK$570 million) SkyPier, the £64.7 million (HK$768 million) North Satellite Concourse, the £16.7 million (HK$197.8 million) DHL Express Cargo Terminal and, in joint venture, the £278 million (HK$3.3 billion) HACTL SuperTerminal 1.
   
   
3. Gammon's recent significant project awards include:
   • the HK$4.75 billion (£407 million) contract for the construction of Hong Kong University and Sai Ying Pun railway stations as part of the West Island Line extension
   • the HK$2.4 billion (£195 million) contract for the widening of the Tolo and Fanling Highways in Hong Kong
   • the HK$930 million (£74 million) Victoria Park swimming pool complex
   • the HK$1.34 billion (£106 million) contract to construct Kennedy Town Station and overrun tunnels
   • the HK$2 billion (£150 million) Hong Kong University Contract for its Centennial Campus and University Street and Associated Works Phase 1
   • the HK$3.76 billion (£300 million) Harbour Area Treatment Scheme for the construction of a sewage conveyance system for the Hong Kong Government
   • the HK$1.5 billion (£120 million) Hennessy Centre redevelopment
   • the HK$2.82 billion (£230 million) contract for the reconstruction of a section of the Tuen Mun road between Tsuen Wan and Tsing Lung Tau
   • the HK$4.94 billion (£400 million) 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
     
     
4. Balfour Beatty (www.balfourbeatty.com) 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, Australia 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, retail and mining). We deliver services essential to the development, creation and care of these infrastructure assets including investment, project design, programme management, financing, engineering and construction, and facilities management services.
   
   Balfour Beatty employs more than 50,000 people around the world.