Balfour Beatty in £800m government contract win

INFRASTRUCTURE group Balfour Beatty has won preferred bidder status for an £800m Essex waste contract.

The project is a 28-year public-private partnership (PPP) contract to design, build and operate a new sustainable waste treatment facility for Essex County Council and Southend-on-Sea Borough Council.

The group will invest around £7m, or around 30 per cent of the required equity. The project is a joint venture with Spanish outfit Urbaser, which will invest the remaining 70 per cent.

The deal is expected to close in the first half of 2012, and construction due to end in 2015. Urbaser will operate the waste plant once it is built.

Balfour Beatty chief executive Ian Tyler said the deal strengthens the firm’s position in the waste management sector.