INFRASTRUCTURE and construction groups Balfour Beatty, Morrison Utility Services and Skanska yesterday netted themselves a £2.8bn payout from National Grid, after winning eight-year contracts with the gas and electricity firm.
Balfour Beatty has won two contracts worth £1.2bn, for eight years each, to upgrade the gas distribution network in the North West and the West Midlands.
It will invest £55m of working capital into the projects.
“The award of these new contracts builds on our ongoing strategic focus in the power market and is an excellent example of partnership with our clients to deliver continuing value as well as ongoing certainty to a core element of the UK's infrastructure,” chief executive Ian Tyler said yesterday.
Separately tRIIO – the joint venture between Morrison Utility Services and Skanska – was awarded an eight-year contract worth £1.6bn to deliver National Grid’s mains replacement programme in the East of England and North London, which will also include gas mains replacement, connections and diversions.
Work on the eight-year contracts is due to start next April.