Balfour Beatty Wins 180m of Heathrow Airport Work
Balfour Beatty has been appointed to deliver up to £180 million of infrastructure works for Heathrow Airport Limited.
Over the next three years the company will work together with Heathrow to maintain and upgrade Terminals 1, 2 and 4, through the ‘Delivery Integrator Framework Lot 1’.
This is the first of four new-style framework contracts to be awarded by Heathrow, each for a different section of the airport, as part of a total investment package of £1.5 billion.
These new frameworks, which appoint a single contractor to deliver a programme of projects, are intended to enable Heathrow to realise year-on-year savings on its capital investment programme.
Balfour Beatty will act as programme manager and contractor at various stages throughout the lifecycle of the framework, delivering individual projects worth between £500,000 and £70 million.
Projects will range from structural improvements to multiple asset replacements such as escalators and passenger conveyors, passenger and goods lifts, air conditioning systems, retail areas, CCTV, access and security systems.
At the end of 2016 there is an option to extend the framework for a further two years, which will be worth up to an additional £70 million.
Balfour Beatty said it would bring a substantial range of in-house expertise to deliver the framework, including design, engineering, construction, mechanical and electrical capabilities, and Building Information Modelling (BIM) which will allow full 4D design specification for Heathrow.
Balfour Beatty has a fifteen-year association with Heathrow having worked on two previous frameworks, and has delivered significant infrastructure projects from the award-winning Terminal 5 facility to multiple asset improvement projects across the airport. The company is currently delivering the new £590 million Terminal 2B facility as part of the Terminal 2 complex, due to open this summer.
Steve Marshall, Balfour Beatty Executive Chairman, said: “I am delighted Balfour Beatty has been appointed to Heathrow’s new style of framework contracts. We have worked in partnership with Heathrow for fifteen years and we will continue to bring our leading capabilities in areas such as Building Information Modelling and safety to our work at Terminals 1, 2 and 4; and play our part in helping Heathrow maintain its position as a leading travel hub.”
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”.