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By Simon Zekaria
LONDON--Infrastructure group Balfour Beatty PLC (BBY.LN) said
Friday that its joint venture with engineering company NG Bailey
has won preferred bidder status for Electricite de France SA's
(EDF.FR) 460 million pound ($717 million) project Hinkley Point
C--the first nuclear power station to be built in the U.K. for 20
years.
The 50-50 venture--named Balfour Beatty Bailey--will provide
infrastructure to power the station and its operations, it said in
a statement.
The six-year project will start in 2016 with design work,
followed by the construction phase a year later.
The venture's full contract award is scheduled for 2016, subject
to a final investment decision, Balfour Beatty said.
Separately, security company G4S PLC (GFS.LN) said it has won a
10-year contract with EDF worth GBP80 million at Hinkley Point,
subject to a final investment decision. G4S will deploy 300 staff
at peak of delivery.
Hinkley Point C, located in north Somerset, England, will have
two nuclear reactors to provide low-carbon electricity to meet 7%
of U.K. demand, said Balfour Beatty.
Earlier this month, Balfour Beatty issued a profit warning--the
latest in a series of such declarations. This year, it has rolled
out a plan to overhaul the business with improved profit and cash
generation, in a bid to turn around its ailing fortunes, as well as
managerial changes.
The plan will concentrate on improving liquidity, as well as
cutting costs. A number of steps have already been taken across the
U.K. and the U.S.
At 1014 GMT, Balfour Beatty shares rose 0.1% to 231 pence,
valuing the company at GBP1.59 billion. G4S shares dipped 0.3% to
272 pence.
Write to Simon Zekaria at simon.zekaria@wsj.com
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