Balfour Beatty in line for £500m joint venture

Construction firm Balfour Beatty is the preferred bidder for a £500m joint venture to build an energy-from-waste facility.

The 28-year PPP project involves the design, build and operation of the site for Gloucestershire County Council.

The project will be undertaken as a 30/70 joint venture between Balfour and waste management firm Urbaser.

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The construction company will be involved in the design and construction of the facility, after which it will be handed over to Urbaser to operate from late 2015 onwards.

The council hopes the energy-from-waste facility will divert over 91% of Gloucestershire's residual municipal waste from landfill.

This could generate 116,000MW hours of electricity annually, which could to power more than 25,000 homes, the company said.

Balfour Beatty will invest around £13m in the project, which is expected to reach financial close in the second half of 2012.