Balfour Beatty, the international infrastructure group, is increasing its exposure to the growing waste sector.

The Group is announcing the award of a £34 million contract to construct buildings and infrastructure as part of a new UK Mechanical Biological Treatment (MBT) facility in Yorkshire and alongside its joint venture partner, Urbaser, has reached financial close for the £800 million Essex Waste Partnership’s Residual Waste Treatment Contract.

Commenting on the contracts, Balfour Beatty Chief Executive, Ian Tyler, explained: "These two projects, combined with our recent preferred bidder status for the Gloucestershire Residual Waste Project, strengthen our position in the growing waste sector in the UK. They demonstrate the flexibility of our investment business model as well as our ability to harness the skills within the Group to take advantage of opportunities in growth sectors."

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The Essex project, a 30:70 joint venture between Balfour Beatty and Urbaser, is a 28-year PPP contract to design, build and operate a new sustainable waste treatment facility for Essex County Council and Southend-on-Sea Borough Council. The award of the preferred bidder position was announced in January.

Balfour Beatty will be involved in the design and construction of the facility and will invest 30% of the required equity, approximately £7 million, in the project. Subject to gaining planning permission and a permit to operate the facility, construction is due to commence in early 2013.

The MBT facility project in Yorkshire is for Shanks Waste Management Limited in partnership with Barnsley, Doncaster and Rotherham councils. The facility will treat up to 265,000 tonnes of household and commercial waste each year which, when converted into energy will result in a saving of 114,000 tonnes of CO2.

(CD/GK)