Non-PPP investments

Barking Power

Barking Power, which owns and operates a 1,000MW gas-fired power station in east London, performed strongly in 2008.

The station operated reliably and at high levels of capacity. Financial performance was driven by the beneficial impact of electricity prices and was also boosted by insurance recoveries following a generator outage in 2007.

Airports

Performance at Exeter International Airport and Blackpool International Airport was at anticipated levels, with reduction in passenger numbers being largely offset by cost savings, an improvement in passenger yields and increases in non-aeronautical revenues.

Exeter International Airport
Exeter is one of the most important regional airports in the country, helped by its status as an important base for FlyBe. It handled nearly 1m arriving and departing passengers in 2008.

The airport development master plan, a draft of which was published in May 2008, sets out a strategy which will see Exeter Airport develop its infrastructure to deal with the increasing demands for business and leisure flights both to and from the region.

Plans for growth include new terminal facilities, new aircraft stands and in the longer term, further terminal capacity, stand and taxiway development.

These plans are expected to underpin the airport’s long-term future which will see a growth in passenger usage from its current c.1m passengers per year to an estimated 1.9m passengers by 2015 and 3.3m by 2030.

Blackpool International Airport
Balfour Beatty acquired 95% of Blackpool International Airport for £14m (including acquired borrowings) in May 2008, as part of the strategy to extend into non-PPP investments and to build a portfolio of regional airports.

Situated one mile south of Blackpool town centre, the airport’s key customers include Jet2.com, Aer Arann and Manx2.com. The airport handled about half a million passengers in 2008, flying 12 routes to the UK, Ireland, Isle of Man and mainland European destinations.

Blackpool International Airport has the potential to become a thriving gateway to Lancashire and Cumbria. The strategy is to deliver significant, sustained growth in passenger traffic at the airport by increasing penetration within the core catchment area and by attracting inbound visitors to the region.