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LONDON (Alliance News) - Construction and infrastructure company Balfour Beatty PLC on Monday said its joint venture with Morgan Sindall Group PLC and BAM Nuttall has been awarded a GBP416 million deal to construct part of the Thames Tideway Tunnel on behalf of developer Bazalgette Tunnel Ltd, while engineering services company Costain Group PLC also said it has part of the deal.
FTSE 250-listed Balfour said the equal joint venture between the three, known as BMB, was named preferred bidder on the contract in February and will handle the building of the six-kilometre 'West' section of the 25 kilometre tunnel.
The Thames Tideway Tunnel is designed to ensure the sewer system in London is fit to support the city's projected population growth over at least the next 100 years, Balfour said.
Mobilisation work for the project will start in September, with completion of the project scheduled for 2022.
"Balfour Beatty's expert teams have for many years helped to make the London landscape - both visible and invisible - what it is today, ensuring it can to continue to grow as one of the world's leading capital cities. The award of this unique infrastructure project, which is part of the largest ever undertaken by the UK water industry, is another example of the part we are playing in 21st Century engineering," said Leo Quinn, Balfour's chief executive.
Added John Morgan, Morgan Sindall's chief executive: "Morgan Sindall has a very strong track record in complex infrastructure projects of this magnitude and we will be bringing this experience to bear as we deliver vital improvements to London's infrastructure. We are delighted to be working with Bazalgette Tunnel Ltd and our joint venture partners to create a cleaner and healthier River Thames for generations to come."
Separately, Costain said its joint venture with VINCI Construction Grands Projets and Bachy Soletanche Ltd has been awarded a GBP605 million deal to handle the 'East' works package on the project.
Costain has a 40% stake in the joint venture. Work on the contract will start immediately, with completion set for 2023.
"We are pleased to have been selected as a delivery partner for the Thames Tideway Tunnel. This award reflects Costain's ability to provide the breadth of skills and capabilities necessary for these major schemes, and our ability to operate safely as part of a collaborative integrated team," said Costain Chief Executive Andrew Wyllie.
In a separate statement later Monday morning, International Public Partnerships Ltd, the FTSE 250-listed infrastructure investor, said it has committed to invest up to GBP210.0 million in the Thames Tideway Tunnel project via the Amber Consortium.
The Amber group also includes Allianz Capital Partners, Dalmore Capital Ltd, and DIF. It has been awarded the licence to finance the construction of the project.
Balfour shares were down 3.9% to 254.1 pence in early trade, while Morgan Sindall shares were down 1.4% to 808.45 pence, Costain shares were down 0.9% to 366.5 pence and International Public Partnerships shares were down 0.2% to 137.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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