AMEC, Babcock awarded extension to National Grid contract

AMEC and Babcock's five-year Electricity Alliance West contract with National Grid has been extended by a further five years, the companies announced today.

The contract - awarded to the joint venture between the two engineering firms and Mott MacDonald Group - involves the upgrade of overhead power lines and underground cables in west England and Wales.

The five-year extension is worth £650m and will see the joint venture run until 2017. AMEC and Babcock Networks are major partners in the joint venture, owning a 47.5% share each.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"This extension to 2017 is testimony to the excellent day-to-day performance of the Alliance and the focus we have placed on ensuring we safely meet the requirements of a very important and long-standing customer," said Mike Saunders, President of AMEC's Power and Process Europe business.

Meanwhile, Babcock's Chief Executive Peter Rogers said, "We look forward to building on this partnership with National Grid as it delivers the significant investment programme required to support the UK's growing energy needs."