(Alliance News) - Balfour Beatty PLC on Monday said its Gammon Construction joint venture has been awarded a HKD12.88 billion contract to expand a terminal at Hong Kong International Airport.
The HKD12.88 billion contract, equivalent to around GBP1.27 billion, is for expanding Terminal 2 of the airport and was granted by the Airport Authority Hong Kong.
China-focused joint venture Gammon is equally owned by London-headquartered Balfour Beaty and conglomerate Jardine Matheson Holdings Ltd. Gammon will be responsible for expanding the main Terminal 2 building as well as construction interconnecting bridges plus mechanical and electrical works. It will also build associated roads and viaducts.
The terminal expansion is part of the airport's three-runway system project, which will allow arrivals and departures from one terminal as well as increasing passenger activity overall.
Balfour Beatty Chief Executive Leo Quinn said: "This award marks Gammon's second significant contract for the Airport Authority Hong Kong this year and the largest single contract ever awarded to Gammon.
"Through leveraging wide-ranging engineering expertise and offsite and modular construction approaches Gammon has secured a material share of the Hong Kong market which continues to look favourable with significant infrastructure opportunities ahead."
In the first half of 2020, Gammon obtained a HKD2.2 billion major tunnel contract at the airport.
Shares in infrastructure firm Balfour Beatty were up 1.2% at 238.60 pence in London on Monday morning.
By Anna Farley; annafarley@alliancenews.com
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Balfour Beatty (BBY)
Jardine Math.sr (JAR)