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24 October 2006 -- UK utility company National Grid has announced the preferred partners for new five year contracts worth up to £2.8 billion that will be a significant part of the overall potential capital investment to upgrade and develop the electricity transmission network across England and Wales.
The contracts will be amongst the largest ever awarded by National Grid and include work on high voltage overhead lines and underground electricity cables plus contracts for substation development and construction. The long-term contracts will be split on a geographic basis to improve access planning with distribution network operators and the following companies and consortia have been chosen as preferred partners:
Overhead line and cable Alliances:
- East Alliance: Balfour Beatty Group
- West Alliance: AMEC, Babcock and Mott MacDonald
Substation Alliances: - Alliance 1 -- South East: AREVA, Skanska & Mott MacDonald
- Alliance 2 -- S. Wales & West: Jacobs, Morrisons Utility Services & Mitsubishi Electric
- Alliance 3 -- Central: ABB, Morgan Est & Atkins
- Alliance 4 -- North: Siemens, J Murphy & Sons Ltd & PB Power
The Alliances will support National Grid's increased investment in the electricity transmission network and contribute to the wider issue of security of supply. The works are required to connect new infrastructure such as wind farms and other new electricity generation plant. The contracts will also cover enhancement and replacement of existing assets to ensure the continued safe and reliable operation of the electricity network.
These collaborative contracts involve the whole supply chain and take into consideration the total life of the assets to ensure safe and sustainable delivery with a strong emphasis on health and safety. The initial contract length is five years, with a potential extension for a further five. National Grid said all of the companies are committed to building integrated alliances and long-term working relationships.
National Grid's Director of UK Construction, Rowan Sharples said, "Following the success of our Gas Alliances, we have adopted a collaborative approach for electricity transmission. Providing long-term visibility of workload makes us a more attractive client and is essential for resourcing in a very buoyant world market. We believe working as one team will make the best use of competencies and the sharing of risk and reward improves both ownership and innovation."
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