Balfour Beatty consortium wins large stake in multi-billion dollar rail project in Denver

Construction company and FTSE 250 constituent Balfour Beatty (LON:BBY) has announced that the Denver Transit Partners (DTP) team has reached financial  close for the design, build, finance and operation (DBFO) of the Eagle P3 commuter rail project in Denver and that the group will be responsible for 50% share of the engineering, procurement and construction contract and 33% of the 29-year operations and maintenance contract.

Balfour’s share of the engineering and construction and operations and maintenance contracts from the Denver Regional Transport District (RTD), both worth US$1 billion, will amount to US$500 million and US$340 million respectively.

The groundbreaking is scheduled for 26 August 2010.  Phase 2 is expected to be let in 2011.

The DTP team includes Balfour Beatty’s recently acquired professional services business Parsons Brinckerhoff.

The Eagle project will include a new 22.8 mile commuter rail line from Union Station to Denver International Airport called the East Corridor, a new 11.2 mile commuter rail line from Union Station to Wheat Ridge called the Gold Line, a two mile initial segment of the Northwest Rail Corridor and a new commuter rail maintenance facility.

The Eagle Project is part of RTD's FasTracks Plan, a 12-year multi-billion dollar transit expansion programme to build and operate new commuter and light rail services and expand transportation offerings throughout the eight-county Denver area.

Last week, the group signed a contract to deliver the second phase of a satellite building to support Heathrow Airport's new Terminal 2 - T2B for BAA for £460 million and a £230 million street lighting contract for Coventry City Council.

http://www.proactiveinvestors.co.uk/companies/news/20097/balfour-beatty-consortium-wins-large-stake-in-multi-billion-dollar-rail-project-in-denver-20097.html