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Balfour Beatty secures £200 million of major new project work in Asia

Contract awards in Hong Kong, Singapore, Macau and China

Balfour Beatty, the international engineering, construction, services and investment group, announces today that Gammon Construction, Hong Kong’s leading construction group, in which Balfour Beatty has a 50% interest, and Balfour Beatty Rail have secured approximately £200 million of major new project work in Hong Kong, Singapore, Macau and China.

In Singapore, Gammon has been awarded the contract to design, construct and commission the new Chinatown Interchange Station. The project, which is valued at approximately £55 million, involves new station construction, crossing over the existing Chinatown Station on the North East Line, overrun tunnels, and connecting tunnels to the adjoining Cross Street Station. The project, which is part of Stage 1 of the new Downtown Line development, is due for completion in 2013.

In Macau, in a project of similar value, Gammon has been awarded the contract to construct a retail podium and a 42-storey, 2,000-room hotel tower for Venetian Orient, as part of Macau’s rapid development as a regional leisure and recreational centre. The project is due for completion in the summer of next year. This follows on from Gammon’s successful delivery of the £230 million The Venetian® Macao-Resort-Hotel, which opened on 28th August 2007.

In Hong Kong, work commenced recently on a £33 million project to design and construct four service reservoirs, a link bridge and a range of civil engineering work for The University of Hong Kong in a project due to be completed by September 2009.

In China, Balfour Beatty Rail has been, awarded a £35 million contract in respect of the design, supply, supervision of installation and commissioning of the catenary system for the new high-speed dedicated passenger railway line between Wuhan and Guangzhou by the Chinese Ministry of Railways. The new 968-kilometre double-track line will operate with a line speed of 300 kilometres per hour. The project will be completed by the end of 2009. This project follows Balfour Beatty Rail’s successful completion of the electrification of the 950 kilometre Harbin-Dalian railway line. Balfour Beatty has been responsible for more than 5,000 kilometres of rail electrification work since 1999. The company is currently also working in China on the electrification project for Tianjin to Shenyang.

Commenting on these awards today, Balfour Beatty Chief Executive, Ian Tyler, said:

“Balfour Beatty has a substantial presence in South-East Asia, which is one of its targeted territories for long-term growth. Through Gammon, we are Hong Kong’s leading construction company. Their successful expansion in the fast-growing markets of Macau and Singapore is progressing very satisfactorily. We also anticipate further opportunities in the Chinese rail market, based on our experience, our status as a wholly-owned Foreign Enterprise and our excellent relationships with the Chinese Ministry of Railways.”

ENDS

Enquiries to:

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

Notes to Editors

1. Gammon Construction is Hong Kong’s leading construction company.  Balfour Beatty is a regional 50% shareholder in Gammon, with Hong Kong-based conglomeration, Jardine Matheson.  It employs over 2,000 people and has projected 2007 revenues of approximately £500 million.
   
   Gammon’s recent and current projects include:
   • The Venetian® Macao-Resort-Hotel comprises construction and electrical and mechanical work to a total value of approximately £230 million
     
     
   • The Kowloon South Rail Link comprising West Kowloon Station and the connecting tunnel valued at £140 million
     
     
   • The Hong Kong section of Hong Kong-Shenzhen Western Corridor, comprising construction of a 3.5 km long dual three-lane carriageway valued at HK$2.2 billion (£162 million)
     
     
   • The £150 million contract to build the 70-storey One Island East for Swire Properties.
     
     
2. Balfour Beatty Rail operates in China as a Wholly Owned Foreign Enterprise (WOFE).  It has carried out a number of projects in China, most notably the Harbin-Dalian electrification and power supply project completed in 2002.
   
   
3. Balfour Beatty is a world-class engineering, construction, services and investment business, well positioned in infrastructure markets which offer significant long-term growth.  We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise.  Our skills are applied in appropriate combinations to meet individual customer need.  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.