Balfour Beatty wins first PPP concession outside the UK

Balfour Beatty has won its first PPP project outside the UK. It is a £90m scheme in Singapore.

The bid was submitted by Gammon Capital, Balfour’s PPP division that looks for opportunities in south east Asia.

The project, new Institute of Technical Education College West, has a contract period of 27 years and it is planned to have it built and ready for use in January 2010.

Construction will be undertaken by Gammon Construction in which Balfour has a 50% interest. Gammon will also be responsible for the long-term fm services, including M&E maintenance and audio visual (AV) support as well as waste management.

Ian Tyler, Balfour’s chief executive, said: “This is an important step in our strategy of creating sustainable PPP businesses in selected geographic markets.”

Gammon Construction is Hong Kong’s largest contractor with an annual turnover of £500m and 2,000 full-time staff.

In both Gammon Capital and Gammon Construction, the other 50% partner is Jardine Matheson.

In the UK, Balfour has 26 PPP concessions in the name of Balfour Beatty Capital. Four are at preferred bidder stage. The total equity commitment runs to £250m.