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Balfour Beatty reaches financial close for £63 million South Tyneside PFI street lighting contract

The contract is for a 25-year term. Under the contract, Balfour Beatty will take responsibility for the whole of South Tyneside’s street lighting and highways signs services. Balfour Beatty’s power line and cabling subsidiary, Balfour Beatty Power Networks, will carry out the work which will involve the replacement of 80% of the existing lighting infrastructure over the first five years of the contract and also includes providing lighting to previously unlit areas such as back lanes and footpaths.

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

“We look forward to working with South Tyneside Council on a programme which will improve road safety, reduce crime and enhance the local environment. This is the 22nd concession won by Balfour Beatty Capital Projects in the PFI market and brings our total committed equity investment in this market to £275 million.”

Leader of South Tyneside Council, Councillor Paul Waggott, said:

“We are delighted to have secured this deal, which will have a major impact on people’s lives. It will allow us to light previously unlit back lanes and footpaths, which will help us to reduce the fear of crime and deter criminal acts such as vandalism. This project is further evidence of our vision to transform the Borough for the benefit of all our residents. We look forward to working with Balfour Beatty.”

Balfour Beatty won the £100 million, 25-year PFI contract for street lighting in Sunderland in 2003. Under this 25-year contract, some 35,000 new lighting columns are being installed and 45,000 lighting columns and 13,500 lighting signs are being maintained.

Enquiries to:

Tim Sharp
Tel: 020 7216 6846

www.balfourbeatty.com

Notes to Editors

1. Connect Roads, a 100% owned part of the Balfour Beatty Group has four major PFI road concessions. These are the A30/A35 in Devon and Dorset, the A50 in Derbyshire, the A1/M1 Link in Yorkshire and the M77 in Scotland. Overall Balfour Beatty has £63 million of investment in Connect Road’s concession projects.


2. Balfour Beatty’s extensive portfolio of term maintenance contracts includes work on motorways, trunk and minor roads for the Highways Agency and a number of county councils.


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.