BAA doubles spending

British Airports Authority is to double its capital spending to œ1.4 billion over the next three years.

The company has more than 140 projects planned to improve facilities and cope with the projected increase in passengers at its seven airports.

The lion's share will be invested at Heathrow, which will soak up more than œ1 billion, including œ300 million for the Heathrow Express rail link. Gatwick will absorb œ214 million, while work at Stansted will take up nearly œ70 million.

A further œ100 million is earmarked for the three Scottish Airports, Edinburgh, Glasgow and Aberdeen. Also, œ23 million is being spent on a new passenger terminal and other facilities at Eastleigh airport, Southampton. Work is due for completion in November this year.

BAA spent œ681 million over the last three years and the new investment represents the largest ever increase by BAA. The figure does not include the œ1 billion estimated cost of Heathrow's Terminal Five.

Much of the spend is directed at increasing the amount of retail outlets at the airports. Last year, retail revenue rose 45% to œ468 million, overtaking earnings from traffic charges. BAA added 4,600m2 of new retail last year alone.

BAA will probably use construction management contracts for the larger schemes as it likes to keep close control of projects from the design stage onwards. Contracts often require a strong design input from the main contractor and most important subcontractors at an early stage.

BAA prefers to spend a long time on design and programming as this cuts construction times and costs.

Work in progress at Heathrow includes the Heathrow Express, where Balfour Beatty has a œ60 million contract for the main tunnels. Bovis has the œ33.7 million construction management contract for the flight connections centre, opening in November this year, and the œ13.3 million Terminal One departures lounge expansion. It will also oversee the œ36.9 baggage transfer system.

Amec is working on a œ11.4 million refurbishment of the main tunnel.




BAA - Current and forthcoming projects over œ10 million

Heathrow œm

Heathrow Express œ300

Terminal 5 œ1,000

Flight Connections Centre œ34

Terminal 1 Departure Lounge œ13

Terminal 1 Baggage System œ27

Terminal 2 Airside Expansion œ25

Europier œ27

Transfer Baggage System œ37

Main Tunnel Refurbishment œ11

BA Cargocentre (Phase 1) œ50

Gatwick

North Terminal Departure Lounge œ14

South Terminal Departure Lounge œ16

South Terminal Check-in Expansion œ16

Glasgow

Stage 2 International Expansion œ39

All Airports

Hold Baggage Screening œ135