Balfour wins £1.3bn HK airport deal
‘The project will encompass an expansion of the second terminal and construction of interconnecting bridges’
CONSTRUCTION giant Balfour Beatty has won a £1.3bn contract to extend Hong Kong airport, the company announced yesterday.
The deal was awarded to Balfour’s joint venture Gammon, which is run in conjunction with the Hong Kongbased conglomerate Jardine Matheson.
The project will encompass an expansion of the airport’s second terminal, the construction of interconnecting bridges, and mechanical and electrical work, as well as associated viaducts and roads.
Leo Quinn, Balfour Beatty’s chief executive, yesterday said: “This award marks Gammon’s second significant contract for the Airport Authority Hong Kong this year, and the largest single contract ever awarded to Gammon.”
The venture had already secured another valuable contract in relation to Hong Kong airport earlier in 2020, comprising tunnel construction and baggage management, worth £760m.
Balfour announced a half-yearly loss last week of £26m, largely down to the lockdown earlier in the year which had negatively affected the construction business. At the time, Mr Quinn said the financial effects of the pandemic were “unavoidable, but they will pass”. Its order book rose 20pc in the period to £17.5bn, thanks in part to contracts connected to the High Speed 2 rail line.
Shares in Balfour closed up 1.5pc at 239.2p. The stock was trading at nearly 300p in the middle of January.