Balfour Beatty’s 50/50 joint venture Gammon has secured a HK$12.88bn ($1.66bn) contract to expand Hong Kong International Airport’s Terminal 2.
Under the four-year contract awarded by the Airport Authority Hong Kong (AA), Gammon will manage the expansion of the main Terminal 2 building.
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It is also responsible for the construction of interconnecting bridges and mechanical and electrical works, along with associated viaducts and roads.
The Terminal 2 expansion is part of the Three-Runway System project at Hong Kong International Airport.
Once completed, the improved infrastructure will allow arrivals and departures from one terminal. This will increase the overall passenger capacity of the airport.
Balfour Beatty Group CEO Leo Quinn said: “This award marks Gammon’s second significant contract for the AA this year and the largest single contract ever awarded to Gammon.
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By GlobalData“Through leveraging wide-ranging engineering expertise and offsite and modular construction approaches, Gammon has secured a material share of the Hong Kong market, which continues to look favourable with significant infrastructure opportunities ahead.”
Earlier this year, Gammon secured the HK$7.2bn ($930m) major tunnel contract at Hong Kong International Airport.
Under this contract, the company agreed to deliver tunnels and associated works for an automatic people mover and baggage handling system on behalf of AA.
In June this year, AA signed five-year loan facilities worth HK$35bn ($4.5bn) with 21 local and international banks.
The facilities included a term loan tranche worth HK$17.5bn ($22.25bn) and a revolving credit facility tranche worth the same.
AA plans to use the loan facilities to fund its capital expenditure such as the Three-Runway System project.
