Balfour Beatty wins news contract

Balfour Beatty, the international infrastructure group, has been appointed as the preferred bidder for the £800m Essex Waste Partnership's Residual Waste Treatment contract.

The project, a 30-70 joint venture between Balfour Beatty and Urbaser, is a 28-year public-private partnership contract to design, build and operate a new sustainable waste treatment facility for Essex County Council and Southend-on-Sea Borough Council.

Balfour Beatty will invest 30% of the required equity, approximately £7m, in the project which is expected to reach financial close in the first half of 2012.

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Balfour Beatty, in joint venture with Urbaser, will be involved in the design, construction and commissioning of the facility, which will then be handed over to Urbaser to operate from mid-2015 onwards.

The announcement comes just three weeks after Balfour Beatty and Urbaser were awarded Gloucestershire's 28-year Residual Waste Project.

Balfour Beatty Chief Executive, Ian Tyler, said: "Much like the Gloucestershire project, the Essex award demonstrates the breadth and flexibility of our investment business model and further strengthens our position in the growing waste sector.

"This project will play a major role in delivering Essex and Southend-on-Sea's waste management strategies, as well as providing a boost to the local economy through construction-related jobs and full-time employment and apprenticeship positions once the facility is operational."

The share price 3.06% to 272.7p by 14:10.

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