Contractors land £2.8bn National Grid deals
National Grid has awarded long-term deals worth almost £3 billion to Balfour Beatty and a Skanska/ Morrison Utility Services joint venture.
Skanska and Morrison Utility Services have won an eight-year deal for National Grid’s gas mains replacement programme and associated activities in the UK.
The total amount of the contract is £1.6 billion and the contractors will be responsible for two of four regional areas in England: the East of England and North London.
Work includes pipe replacement, connections, diversions, reinforcements, other capital asset replacement activities and resource provision. The deal starts on 1 April 2013 and end 31 March 2021.
Peter Jones, managing director for Utilities Services at Skanska UK, said: “With 13 years of experience of working together on previous projects, Skanska and Morrison Utility Services bring a wealth of knowledge and skill to this important infrastructure project.”
Morrison Utility Services chief executive Charles Morrison said: “The combined strengths, knowledge and expertise of Morrison Utility Services and Skanska UK will ensure (joint venture) tRIIO is perfectly positioned to deliver safety, innovation and exemplary service to National Grid and its customers.”
Meanwhile, Balfour Beatty has been awarded two eight-year contracts under the Gas Distribution Strategic Partnership to cover the North West and West Midlands.
The contractor will invest £55 million of working capital in the contracts and add to its existing electricity alliance contract with National Grid which involves the ongoing upgrade and refurbishment of the high voltage transmission network owned by National Grid across England and Wales.
Balfour Beatty announced it had won a five-year, £750 million extension to its contract with National Grid to maintain and upgrade the electricity transmission network in the UK in January.
Balfour Beatty chief executive, Ian Tyler, said: “National Grid is one of our longest held relationships and we are delighted to continue this partnership.
“The award of these new contracts builds on our ongoing strategic focus in the power market and is an excellent example of partnership with our clients to deliver continuing value as well as ongoing certainty to a core element of the UK’s infrastructure.”