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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
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.
NR
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
