Gammon to construct sewage conveyance system for Harbor Area Treatment Scheme in Hong Kong

HONG KONG, July 31, 2009 -- Balfour Beatty announced hat Gammon Construction, a leading infrastructure contractor in Hong Kong in which the Group has a 50% shareholding, has been awarded a HK$3.76 billion (£300 million) contract by for the construction of a sewage conveyance system...

HONG KONG, July 31, 2009 -- Balfour Beatty, the international engineering, construction, investment and services Group, announces today that Gammon Construction, the market-leading infrastructure contractor in Hong Kong in which the Group has a 50% shareholding, has been awarded a HK$3.76 billion (£300 million) contract by the Hong Kong Government for the construction of a sewage conveyance system.

The contract is the largest single civil engineering contract ever won by Gammon.

Work will comprise construction of three deep tunnels, totaling 12 kilometers in length and up to 165 meters in depth, which will form a main part of the Harbor Area Treatment Scheme (HATS) Stage 2A. The tunnels will collect and convey preliminarily treated sewage along the north of Hong Kong Island and under Victoria Harbor to Stonecutters Island for chemical treatment.

Commenting on the contract award today, Balfour Beatty Chief Executive, Ian Tyler, said:

"We are delighted to have been selected to carry out this important infrastructure project. Gammon's advanced capabilities, technological standards and expertise in tunneling work, including work on HATS Stage 1, were all factors in securing the contract."

To enhance safety on the project, a specialized tunnel personnel tracking system will be developed to enhance the working environment and electrically powered equipment will be used for the tunneling operation.

The project is due for completion in 2014.

Gammon Construction is 50% owned by Balfour Beatty and 50% by Jardine Matheson, the major Asian trading and manufacturing group. Gammon is Hong Kong's largest and most successful contractor with over 2,000 employees.

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