Amec signs contract to extend DLR at last

Amec, the international engineering services company, has finally signed contracts with Docklands Light Railway Ltd to extend the railway to London City Airport - six months after it was chosen as preferred bidder for the £300m PFI scheme.

The contract for Amec's City Airport Rail Enterprises consoritum covers the design and construction of a 4.4km extension to the network and its long term maintenance. Construction will begin immediately with an anticipated completion date of autumn 2005.

The financial close reached today (Tuesday) provides the necessary funding agreements for the three-year construction period which has an investment value of around £175m.  Maintenance, management, interest costs and profit over the following 27-year period will account for the remaining sum.

Amec chief executive Sir Peter Mason said: "This is an important long term concession for Amec who in less than three years time will be providing greatly improved access to London City Airport and bring very real benefits to the travelling public.

"It also provides further evidence of the strong growth potential in transport that currently exists for Amec and follows our other recent awards to upgrade and operate part of the A1 in Yorkshire, to undertake long term track renewal work across the UK rail network and to provide infrastructure services to BAA's seven UK airports over a 10-year period."