Additional spend for 2013 given go-ahead by BAA’s Spanish owners.
Airport operator BAA is set to boost investment in new infrastructure at Heathrow after securing an additional £952M spending package for 2013 from its Spanish owner Ferrovial.
BAA capital director Steve Morgan said the funding programme, known as “Q5+1”, will add to investment agreed with the regulator for the five year Q5 control period which was extended in 2011 by a year to April 2014.
“The [Ferrovial] board has just signed off a commitment to spend an additional £952M at Heathrow for Q5+1 in 2013,” he said. “Invitations to tender for work will go out into the supply chain in the next few month or so.”
Morgan also pointed out that BAA’s latest funding agreement would “bring the total spent at Heathrow in the last decade during Q4 and Q5 to over £9bn”.
Finalising spending plans
BAA is finalising details of its spending plans for the next five year regulatory control period, Q6, which starts in April 2014.
Although this still has to be negotiated with the regulator - who will decide how much BAA can charge for its Heathrow services to fund the investment - Morgan said he was confident that this investment would be “a minimum of £3bn” and possibly even as high as £5bn over the five year period.
Morgan was speaking exclusively to NCE after the topping out ceremony last week for Heathrow Terminal 2B, which is being built by Balfour Beatty and designed by Mott MacDonald.
The £600M T2B is the satellite terminal to the giant new Foster & Partners designed Terminal 2 complex at the east of the airport.
The terminal will house a huge baggage handling equipment system for the terminal in a basement constructed 15m beneath the concourse.
The whole Terminal 2 complex is due to be completed at the end of next year and open for passengers in 2014.
Morgan said that the additional funding would continue BAA’s programme to upgrade runways, terminals and other facilities at Heathrow, with the aim of improving services for passengers and airlines.