Balfour Beatty, the international engineering, construction, services and investment group, has announced that it has been selected as a preferred provider, in joint venture, to support the delivery of National Grid's US electricity transmission capital investment programme in New England.

The five-year contract for the design and build of substations and transmission lines in the New England region, Massachusetts, Rhode Island and New Hampshire, will be carried out by the New Energy Alliance, a joint venture between Balfour Beatty and MJ Electric, a Quanta Services company. The contract covers overhead line and sub-station electrical work for new build projects.

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The total value of the capital projects for both New England and for New York State, where National Grid has selected another joint venture partner for transmission and sub-station works, is approximately $1.7 billion.

Contract award is conditional on reaching agreement on commercial terms and is expected to be finalised by 1 April 2009. There is also an option to extend the Alliance for a further three years after the initial five-year period.

Commenting on the award, Balfour Beatty Chief Executive Ian Tyler said: "We are delighted to have been selected to play a major role in National Grid's significant capital programme in the United States. We look forward to working in partnership with National Grid and deploying our integrated expertise and resources, in joint venture with MJ Electric, to deliver this important programme."

(CD/JM)