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Balfour Beatty appointed preferred bidder for £150 million Carlisle Northern Development Route PPP scheme

Balfour Beatty, the international engineering, construction, services and investment group, announces today that its wholly owned subsidiary, Connect CNDR, has been appointed preferred bidder for the Carlisle Northern Development Route (CNDR) PPP concession by Cumbria County Council.

The concession contract, which is worth £150 million, will run for 30 years from financial close, which is anticipated for summer 2008. The design and construction of the new road will be undertaken by Birse Civils, also a wholly owned Balfour Beatty subsidiary. Whole life operation and maintenance services will be provided by Balfour Beatty Infrastructure Services. Balfour Beatty will invest approximately £5 million of equity in the project.

The concession will comprise the construction of an 8.25km two-way single carriageway road from the M6 Junction 44 to the A595 south west of Carlisle and the management, operation and on-going investment in approximately 150km of other existing roads in Cumbria.

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

“We are extremely pleased to be appointed preferred bidder for this important piece of infrastructure which will take traffic away from Carlisle town centre and greatly improve traffic flows around the town and its environs.”

ENDS

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

Notes to Editors

1. The Connect Roads group of companies is Balfour Beatty Capital’s specialist vehicle for PPP concessions in the roads and street lighting sector. Its portfolio currently consists of seven concessions in which Balfour Beatty has over £60 million of equity commitment.
   
   
2. Connect’s other concessions are:
   
   
   • The M1-A1 Link in Yorkshire
     
     
   • The A30/A35 in Devon and Dorset
     
     
   • The A50 in Staffordshire and Derbyshire
     
     
   • The M77/Glasgow Southern Orbital Road
     
     
   • Sunderland Street Lighting
     
     
   • South Tyneside Street Lighting
     
     
   • Derby Street Lighting
   
   
3. Balfour Beatty Capital in the UK has 26 PPP concessions, four at preferred bidder stage, representing an equity commitment of some £253 million. It is currently bidding a number of schools, healthcare and transportation projects in the UK. It also owns Exeter International Airport, in which it has invested £18 million.
   
   
4. Balfour Beatty has new PPP businesses established in the US, Germany and Singapore. It was awarded preferred bidder status on the £92 million Institute of Technical Education project in Singapore – its first outside the UK – earlier this week.
   
   
5. 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.