Balfour Beatty : Far East joint venture awarded two contracts worth a total value of HK$7.7 billion (c. £705m)

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24 January 2018

Balfour Beatty, the international infrastructure group, today announces its 50:50 Far East joint venture, Gammon Construction, has been awarded two contracts worth a total value of HK$7.7 billion (c. £705m).

The first award is for a HK$6.2billion (c. £568m) contract for the Highways Department of the Government of the Hong Kong Special Administrative Region to construct the Kai Tak West Section of the Central Kowloon Route in Hong Kong.

The Kai Tak West Section contract forms a vital part of the 4.7km-long dual three-lane Central Kowloon Route. The works mainly comprise the construction of a 370m long underwater tunnel and the associated temporary reclamation in Kowloon Bay of about three hectares, a 160m long cut and cover tunnel in Ma Tau Kok as well as a 125m long road and a 170m long underpass in Kai Tak Development.

The contract is due to start early this year and with completion scheduled in 2025. A workforce of 400 will be employed at construction peak.

The second award is for a HK$1.5billion (c.£137m) contract for the West Kowloon Cultural District Authority (WKCDA) in Hong Kong to deliver the extended basement and public infrastructure works called the 'L1 Contract for the Lyric Theatre Complex and Extended Basement at WKCD'.

This contract involves excavation followed by the construction of a two-level reinforced concrete structure, public infrastructure works including drainage and a traffic lay-by with associated temporary works. Gammon is already delivering the foundation works for this project, for which it has twice received the WKCDA highest commendation for safety performance. Work is due to commence in early 2018 and is expected to be substantially complete by mid-2020. A workforce of 450 will be engaged at construction peak.

Thomas Ho, Chief Executive Gammon said, 'These two awards demonstrate Gammon's ability to build on existing relationships with key clients and the variety of work we are able to undertake in the Far East, delivered to the highest safety standards.'

ENDS

Image: Completed Lyric Theatre Complex

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Notes to editors:

• Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. With 30,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.
• Our main geographies are the UK, US and Far East. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics' Aquatic Centre, Hong Kong's first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.
• Gammon Construction (www.gammonconstruction.com), headquartered in Hong Kong, is a 50-50 joint venture between Balfour Beatty, the international infrastructure group and Jardine Matheson, the Asian-based conglomerate. The two companies have worked in partnership since 2004 to forge a reputation for delivering high quality projects for customers throughout China and Southeast Asia. The business is a major player in the Hong Kong and Singapore roads market. Gammon's service extends over the full project life-cycle, from initial site survey and design through construction to commissioning and ongoing maintenance.
• Gammon's current project portfolio includes: The Fullerton Ocean Park Hotel Hong Kong near the Ocean Park water park on Hong Kong Island contract worth over HK$1 billion, awarded by Parkland (Hong Kong) Limited. Plantation Road a HKD $800 million deluxe residential development project in Hong Kong. The HK$3bn development of eight medium rise residential blocks and four houses with a two-level basement overlooking Tai Po's Tolo Harbour in Northern Hong Kong, on behalf of Great Eagle Group. The HK$1.6bn Lee Garden Three Project, in the heart of Causeway Bay, Hong Kong, a building with 20 floors of offices sitting above a five-level podium of retail and food outlets and a HK$174m contract for the design and construction of the Mayflower Station on the Thomson Line for the Land Transport Authority.
• Iconic projects of the past include the HK$2.2bn Hong Kong-Shenzhen Western Corridor, a 3.5km, dual three-lane carriageway, suspended mostly above the waters of Deep Bay and the motorway approaches for downtown Hong Kong. Gammon has also delivered a 68-storey One Island East office building, a skyscraper on the eastern shore of Hong Kong Island. This HK$2.3bn project relied on digital project management systems to enable collaboration across all disciplines and reduce construction waste.