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Four contractors to share £3.5bn of BAA projects

BAA could use just four contractors to deliver £3.5bn of major capital works in the next 10 years, including Heathrow's sixth terminal for which a planning application was submitted this week.
BAA commercial director Ken Owen told NCE that more than 20 contractors had pre-qualified for the 'complex projects' framework that will include Heathrow's sixth terminal, known as Heathrow East, and the expansion of Stansted Airport, including a second runway. Owen added that the framework contracts would be awarded in March 2007. 'We are homing in on 4/5 major suppliers in the industry to help us construct,' he told NCE this week. 'It is fewer suppliers than we have got at the moment.'He rejected criticism levelled at the airport operator that the Official Journal of the EU notice for the complex projects framework contractors had been 'too prescriptive' as 'there was a danger that every man and his dog would put in a response' and said BAA was very impressed with the quality of the bids.Owen also rebuffed speculation that BAA's new Spanish owner Ferrovial would struggle to finance BAA's recently published 10-year, £9.5bn investment plans amid speculation that the Spanish infrastructure giant is planning to sell off BAA non-core assets, such as Budapest Airport, because it is feeling the financial strain following it's reported £10.3bn acquisition of BAA.'The energy we are putting into delivering our major projects has not changed,' he said. 'The new owner has committed to the investment plans and is respectful of the BAA position.'

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