Gammon Capital appointed preferred bidder for the new £90 million Institute of Technical Education PPP project in Singapore

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Gammon Capital appointed preferred bidder for the new £90 million Institute of Technical Education PPP project in Singapore

26 Nov 2007

First PPP concession for Balfour Beatty outside UK

Balfour Beatty, the international engineering, construction, services and investment group, announces today that Gammon Capital, its PPP vehicle in South East Asia, has been appointed preferred bidder for the new Institute of Technical Education (ITE) College West in Singapore. The project, which has a contract period of 27 years and a capital value of approximately £90 million, is scheduled to be completed in time for its first intake of students in July 2010. Financial Close is anticipated in early 2008. It is Balfour Beatty’s first PPP project outside the UK.

Construction will be undertaken by Gammon Construction, in which, like Gammon Capital, Balfour Beatty has a 50% interest. Gammon will also be responsible for long-term facilities management services to include mechanical and electrical maintenance, AV support, cleaning, landscape management, security, parking, environment and waste management and catering. Its FM partner will be United Premas, a subsidiary of United Group Services.

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

“We are delighted to have been selected by ITE to play such a key role in the next stage of their development as a global leader in technical education. This is our first PPP project outside the UK and is an important step in our strategy of creating sustainable PPP businesses in selected geographic markets.”

The new college is the second stage in ITE’s plan to consolidate the existing 10 ITE Campuses into three Mega Campuses and follows the opening of ITE College East in January 2005. Under the “One ITE System, Three Colleges” education model, the new ITE College West is envisioned to be “An ITE College of Excellence for Service Quality” operating three key schools for Business and Services, Info-Communications Technology and Engineering.

ITE College West will be a comprehensive college with niche courses in hospitality, retail and automotive engineering. It seeks to provide an inspiring learning and interactive environment that promotes the holistic development of students with relevant skills, knowledge and values for the global economy. The College will also have special emphasis on the development of service excellence skills, knowledge and mindset.

The project involves the design, construction and operation of a distinctive campus with a student capacity of 7,200 full time, 8,100 part time and approximately 630 staff. It will comprise training rooms, workshops, laboratories and lecture theatres. The complex will also include a training restaurant and kitchen, a student interaction and learning centre, integrated sports facilities and centres of technology.

ENDS

Enquiries to:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors

Gammon Capital was formed in 2005 to pursue PPP projects in the Asia region, with an initial focus on Singapore, where Gammon Capital is based.

Gammon Construction is Hong Kong’s largest and most successful contractor. It has a substantial existing presence and long-term experience of working in Singapore. It has an annual revenue of approximately £500 million and employs over 2,000 full-time staff. Like Gammon Capital, it is co-owned with Jardine Matheson.

Balfour Beatty Capital in the UK has 26 PPP concessions, four at preferred bidder stage, representing an equity commitment of some £253 million. It is currently bidding a number of schools, healthcare and transportation projects in the UK. It also owns Exeter International Airport, in which it has invested £18 million.

Balfour Beatty Capital Inc, based in Atlanta, Georgia, was formed in 2005 to bid PPP projects in the emerging US market. It has been short listed for the Oakland Connector project to link Oakland Airport with the Bay Area Rapid Transit System in California and for the Tarrant Expressway in Dallas, Texas.

Balfour Beatty Capital GmbH was formed in 2005 in Germany to pursue opportunities in the German and wider Western European PPP markets. It is bidding for Bremen Hospital in conjunction with Strabag Construction and is currently assessing a number of other opportunities.

Balfour Beatty is a world-class engineering, construction, services and investment business, well positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer need. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities.