The presentation will provide an overview of Balfour Beatty strategy for its PPP/PFI business, the details of its current portfolio and the returns which are expected to be generated. No trading update for the Group as a whole will be given.
The government’s PPP/PFI programme is aimed at providing improved and expanded public services using the expertise and disciplines of the private sector. It seeks value for money from efficient service provision and on-time, on-budget asset delivery.
Mike Welton, Chief Executive, said: “The Group has established a PPP/PFI portfolio that is set to be an increasingly important part of Balfour Beatty’s business mix. The Group is maintaining a highly selective and risk managed approach to PPP/PFI. There is a clear focus on target markets and projects which have an excellent strategic fit with Balfour Beatty’s well-established skills and operating capabilities.”
Balfour Beatty now has £158 million of committed investment in 16 PPP/PFI concessions that have a total construction and services sales value to the Group of £2.4 billion. The total cumulative cashflows from the Group’s existing concessions to 2040 are expected to amount to over £1.1 billion.
Balfour Beatty’s involvement in the PPP/PFI market is principally focussed on the London Underground, healthcare, education and transportation. Significant further growth opportunities are available in each of these sectors. Balfour Beatty welcomes the recent commitment to PPP/PFI by the government, with the signal that by 2005 a further £9 billion worth of projects are expected to be signed in the health, education and housing sectors alone.
ENDS
Enquiries to:
Tim Sharp
Tel: +44 (0)20 7216 6800
A website dedicated to Balfour Beatty’s involvement in PPP/PFI – http://balfourbeattyppp.com – will be coming on-line on Friday 27 June.