International infrastructure group Balfour Beatty has reported that its joint venture with Skanska and MWH Global, SMB, has secured a seven-year contract with Thames Water which will help to ensure the resilience of the water infrastructure in London and the South for future generations.
The contract is worth £1.0bn-to-£1.5bn to the joint venture, shared equally between the three partners, the group said.
It will begin in May 2013 with the 23-month Early Contractor Involvement (ECI) phase, in preparation for the delivery of the sixth Asset Management Plan(AMP). Running from April 2015 to March 2020, AMP6 involves the design and construction of the water infrastructure network including replacing pipes, pumping stations and water treatment works.
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Balfour Beatty said that SMB would be providing design-and-build solutions as part of Thames Water's 'super-alliance' of organisations.
Commenting on the announcement, Balfour Beatty Chief Executive Andrew McNaughton, said: "We're very pleased to be an integral part of Thames Water's AMP6 cycle at a time when the company adopts a completely new approach to its capital investment."
"The pipes and pumps that keep our water system working are crucial, and we are delighted to be bringing our skills and experience to this important programme in water, one of our key economic infrastructure sectors," he added.
Balfour Beatty's share price was up 0.49% to 223.80p at 08:04 on Wednesday.
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