Balfour Beatty and Galliford Try pick up £235mn Carillion highway contracts
Balfour Beatty and Galliford Try have assumed control of two...
Two major contracts held by collapsed construction giant Carillion have found new owners.
Balfour Beatty and Galliford Try have assumed control of two UK road projects – the former taking on £115mn ($155mn) of work in Leeds and Galliford a £120mn ($161mn) job in Lincolnshire.
Carillion’s liquidation earlier this year has left a huge chasm of work that is slowly being filled by other companies.
The industry giant had around 20,000 employees in the UK, 450 governmental contracts, major construction projects across the country including High Speed 2 and the redevelopment of Battersea Power Station, maintenance contracts for 50 UK prisons, as well as wider operations in the Middle East, the Caribbean and Canada.
- Carillion update: 64% of employees in new employment, contract uncertainty remains
- What lies ahead for the UK construction industry in the wake of Carillion?
- Read the latest edition of Construction Global magazine
Balfour Beatty will now deliver the initial stages of the East Leeds Orbital Road, which also involves reworking of several junctions. The project is expected to take 15 months.
Galliford is taking on the Lincoln Eastern Bypass, local authorities have confirmed, with the project cost increasing by £24mn as a result of the change in contractor.
It has also emerged that the Carillion collapse will cost the UK government and taxpayers £148mn due to timing and extent of asset sales.
In May, International Public Partnerships Limited confirmed that 22 facilities management contracts had changed hands, although major hospital construction projects in Liverpool and the Midlands remain subject to uncertainty.
France to invest €1.8bn in Egypt’s infrastructure
France will invest a total of €1.8bn into Egypt’s infrastructure focusing specifically on upgrading the Cairo Metro, building a railway to Sudan, and developing water and energy schemes. Officials have called the investment a “major boost to bilateral cooperation”.
The Cairo Metro
Included in the financing is a concessional government loan of around €800mn to upgrade Line 1 of the Cairo Metro, introduced in the 1980s. The financing will pay for 55 trainsets for the line and is provided by the French engineering company, Alstom.
Line 6 is also due to be upgraded using further state-guaranteed loans worth up to €2bn. Bruno Le Maire said that this would be negotiated over the next six months. France and Egypt have worked in close cooperation ever since Abdel Fattah al-Sisi became president in 2014, despite differences over human rights and strong criticism of Egypt by rights activists and some foreign states.
Nine more projects over the next half a decade
A further €1bn from France’s development agency, Agence Française de Développement (AFD), aims to cover a range of other projects over the next half a decade.
These projects include a railway line between Aswan, southern Egypt, and Wadi Halfa in Sudan, as well as several projects in the renewable energy and water purification industries. Bruno Le Maire, France’s Finance Minister, said Egypt was a “strategic partner and commercial dealings with it would be developed. France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans,” he said.
According to Le Maire, the AFD will also €150mn to support the construction of a universal health insurance programme. French contractors such as Vinci and Bouygues have a long history of working on the Egyptian capital’s underground system.
Talking about the relationship between France And Egypt, Le Maire concluded: “France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans”.