Other PPP concessions

The Group owns and operates a number of other PPP concessions in the UK and overseas.

UK

In 2008, Powerlink, which operates and maintains London Underground’s high-voltage power system, continued its upgrade works on the Victoria line, which are on programme.

Aberdeen Environmental Services, which is responsible for five wastewater treatment plants in Aberdeen, performed satisfactorily.

Following the Dean & Dyball acquisition, the Group has a 25% interest in a small, coastal flood defence project at Pevensey, on the south coast of England.

Overseas

Gammon Capital, the PPP vehicle in South-East Asia in which Balfour Beatty has a 50% interest, reached financial close for Singapore’s new Institute of Technical Education (ITE) College West in August 2008.

The project, Gammon Capital’s first in PPP and the first accommodation-based PPP in Singapore, has a contract period of 27 years and a capital value of approximately £100m. It is scheduled to be completed in 2010, with its first intake of students in July of that year.

In total, Balfour Beatty has £17m committed to these four concessions.