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Gammon wins HK$2.6 billion Venetian Hotel contract in Macau

Balfour Beatty, the international engineering, construction and services group, announces today that Gammon, the Hong Kong-based engineering and construction company in which Balfour Beatty acquired a 50% interest in August 2004, has been awarded the HK$2.6 billion (£175 million) contract to construct the Venetian Macao hotel tower in COTAI, Macau (SAR).

Gammon, through its Macau company, Gammon Building Construction (Macau) Ltd, in conjunction with Mei Cheong Construction Company Ltd, its Macau Partner, has been appointed the Major Trade Contractor for this project.

The project involves a 32-storey tower containing 3,000 guest rooms and suites, with a six-level podium and a total gross area of approximately 350,000 m². It is scheduled for completion in 2007.

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

“Gammon is market leader in Hong Kong for both civil engineering and large-scale building. This success demonstrates the strong basis which we have established in South-East Asia with a view to long-term growth and is further evidence of the Group’s strength in major, complex building works.”

The project involves the construction of a concrete structural frame, structural steel works for the lower floors of the hotel, external facades, waterproofing, lifts and escalators, building services, interior decoration, furniture and fittings.

Macau, formerly a Portuguese dependency, became a Special Administrative Region of the People’s Republic of China in December 1999 and is currently attracting significant investment in tourism and leisure.

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

Notes to Editors

1. Gammon is a strong, broadly-based construction group with an overall Hong Kong market share of approximately 10%. Balfour Beatty owns 50%, with Jardine Matheson, Asian market leaders in a number of business fields, owning the other 50%.


2. Gammon’s main business is in civil engineering, foundation engineering and major building construction. It also owns a number of smaller businesses which support its main contracting activities. Its principal customers include Hongkong Land, the Swire Group, Kowloon Canton Railway Corporation and the Mass Transit Railway Corporation.


3. Balfour Beatty is a world-class engineering, construction and services group, well positioned in infrastructure markets which offer significant growth potential. Its partnerships with public and private customers generate secure, sustainable income. Its 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.