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Bouygues and Laing O’Rourke agree final terms for Hinkley civils contract

Final terms for the main civil engineering contract between the Bouygues and Laing O’Rourke joint venture and EDF have been agreed.

It means that the JV - known as Bylor - can now start detailed planning and prepare for work to start. It was named preferred bidder for the main civils contract back in 2012, valued at £2bn at the time.

It is understood that some formalities remain to be worked through on the deal, and a final investment decision on Hinkley Point C is still awaited from EDF.

Laing O’Rourke group chief executive Anna Stewart said:  “Infrastructure delivery in the UK is at a pivotal point – we have shown the world that major projects, like London 2012 in the past, can be delivered on time, on budget, and to the highest standards possible. Hinkley Point C represents another leap forward, and the opportunity for British engineers to work alongside our French colleagues on a world class project.

“We are delighted that the contract is in its final agreed form between our joint venture and EDF, and look forward to a close and harmonious relationship. This project will provide thousands of job opportunities during construction and eventual operation, with a high proportion in the South West. Furthermore, it will make a significant contribution towards the local economy, as well as securing sustainable power provision to the UK.”

Bylor project director Martin Westbury added: “Since being named as preferred bidder for main civil works, we have worked closely with the client, EDF, and their designers under an early contractor involvement agreement. This has allowed us to work together to help define construction processes and methodology. We have cemented a truly collaborative working relationship between Bylor and EDF, so that we can look forward to the increase in project activity with confidence.”

Yesterday EDF and China General Nuclear Corporation (CGN) signed a deal on funding for the Somerset mega-scheme. Under its terms, EDF will take a66.5% stake in Hinkley Point C, with CGN taking the remaining 33.5%.

The Kier-Bam Nuttall joint venture to provide the enabling works for Hinkley Point C has also finalised its £203M contract with EDF.

Laing O’Rourke Wales & West has also recently been named as the preferred bidder for the construction of workforce accommodation on site.

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