Wednesday 18 February 2009

BOUYGUES CONSTRUCTION WINS TWO NEW CONTRACTS IN BRITAIN WORTH 115 MILLION EUROS

Bouygues UK, Bouygues Construction's British subsidiary, has recently won two new contracts worth 115 million euros in all.

The first project, worth 59 million euros, is for the design and construction of 2 schools in the east London borough of Tower Hamlets. It will combine new construction and refurbishment. As well as taking in pupils, the new schools – built under the BSF (1) programme – will provide continuous training for teachers and amenities like a library, sports facilities and a theatre that will benefit the community as a whole. The first school to be built will have a carbon footprint 60% smaller than is customary for this type of building, with emission levels being reduced by the use of natural light sensors, for example. The contract also includes an optional phase for the construction of 16 additional schools. The works for the 226 million euro-phase are expected to start from 2010.

The second contract, worth 56 million euros, is a design-build contract for social housing. A PFI (2) project, it has been developed in partnership with Hyde Housing Association, a social landlord. Situated in the London borough of Brent, it will comprise 195 social housing units and 20 studio apartments for the mentally-impaired. The work, which has just started, will take two and a half years (32 months).

The two contracts reinforce Bouygues Construction's position as a major player on the British market. The Group has been operating in the UK for over 10 years and has grown strongly, winning major building, public works, electrical contracting and facilities management contracts (see appendix on following pages). The takeover of Warings in December 2007 extended the Group's geographical coverage. Bouygues Construction expects to report UK sales in excess of 560 million euros in 2008, 30% up on 2007.

(1) Building Schools for the Future, a schools modernisation programme, was launched by the Department for Education and Skills in February 2004 with the aim of providing world-class teaching and learning environments for all pupils, teachers and communities in England.

(2) Launched in 1992 by the UK government, Private Finance Initiative (PFI) schemes are a form of long-term contract under which a public authority can use a private-sector partner to design, finance, build and operate public infrastructure in return for a fee or a toll.

APPENDIX

MAIN PROJECTS IN PROGRESS

Westminster schools (2008 - 2011) Under the Building Schools for the Future (BSF) programme, Bouygues UK is responsible for the design, construction and refurbishment of seven schools under a contract worth over 190 M€.

Waltham Forest schools (2007 - 2013) In a contract worth over 300 M€ under the BSF programme, Bouygues UK is responsible for the design, construction and refurbishment of 24 schools in the London borough of Waltham Forest. Two schools, one of them a PFI project, were delivered in time for the start of the school year in September 2008.

Broomfield (2007 - 2011) In the framework of a PFI project, Bouygues UK is restructuring and extending a hospital which will have a surface area of 43,000 sq. m. and a capacity of 330 beds on completion. Ecovert FM, a Bouygues Construction subsidiary, has been awarded a 33-year contract to operate and maintain the building.

New Tyne Crossing (2007 - 2011) As members of a consortium forming the concession company TT2, Bouygues Travaux Publics, HSBC Infrastructure Fund II and Bank of Scotland Corporate were chosen in September 2007 to design and build a new 1,600 m tunnel under the Tyne (the New Tyne Crossing), refurbish the existing tunnel, finance the project and operate all Tyne tunnels for 30 years. The concession contract, worth over 500 M€ in all, was signed on 23 November 2007 by the Concession Company and the Tyne & Wear Passenger Transport Authority representing Newcastle City Council.

North Middlesex Hospital (2007 - 2010) In the framework of a PFI project, Bouygues UK is responsible for designing and building a new hospital. Ecovert FM has been awarded a 30-year contract to operate the building and provide hard FM services.

MAIN PROJECTS COMPLETED

Peterborough and Lewisham schools (2006 - 2009) In the framework of two PFI projects, Bouygues UK was awarded contracts to design, build, refurbish and extend a total of six schools. On completion, the schools will accommodate 7,300 pupils. Ecovert FM has been awarded a 30-year contract to provide maintenance for all the infrastructure.

Street lighting for Barnet and Enfield (2006 - 2031) ETDE is responsible for managing street lighting in the London boroughs of Barnet and Enfield. The network, which was in a dilapidated condition, has been entirely modernised. 70% of equipment has been replaced and the number of light points has been increased by 15%. ETDE is responsible for operating and maintaining the network until 2031.

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Street lighting for Lambeth (2005 - 2030) ETDE has modernised the existing street lighting network in the London borough of Lambeth, replacing 70% of existing light points and increasing their number by 30%. It has also brought the network, which it will operate until 2030, up to European standards.

Barking schools (2004 - 2005) Bouygues UK has refurbished and extended a secondary school in the London borough of Barking and built another new school. Ecovert FM has a 25-year contract to maintain the schools, which accommodate 1,800 and 1,500 pupils respectively.

Central Middlesex Hospital (2003 - 2006) Within the framework of a PFI project, Bouygues UK was awarded a design/build contract for a 30,000-sq.-m., 240-bed hospital. Ecovert FM was awarded a 30-year contract to maintain all the infrastructure.

Home Office (2002 - 2005) Within the framework of a PFI project, Bouygues UK was awarded a contract to build new premises for the Home Office. The project, in central London, included financing, the demolition of three 1960s tower blocks and the design and construction of a new 75,000- sq.-m. building for some 3,500 employees. A residential complex next to the new premises was also built, including social housing, upmarket apartments, shops and a crèche. Ecovert FM will operate and maintain the buildings until 2031.

West Middlesex Hospital (2001 - 2004) Within the framework of a PFI project, Bouygues UK has built a 19,300-sq.-m., 400-bed hospital. A general hospital, it provides the full range of medical services and has operating theatres, resuscitation rooms and an outpatients department. Ecovert FM was awarded a 35-year contract to operate and maintain the hospital.

Barnet Hospital (1999 - 2003) Within the framework of a PFI project, Bouygues UK was awarded a contract to extend Barnet Hospital, adding 250 beds to make a total of 500. The new 25,000-sq.-m. extension includes an intensive care unit, a maternity ward, an accident and , outpatient cardiology and orthopaedic departments, a and a medical laboratory. Ecovert FM was awarded a 30-year contract to provide cleaning, laundry, catering and patient transport services and building maintenance.

King's College London (1998 - 1999) Within the framework of a PFI project, Bouygues UK was awarded a contract to build and refurbish two buildings in central London, Hunt's House and Cornwall House, for one of London University's most prestigious institutions. Ecovert FM was awarded a 25-year maintenance contract.