Babcock-Costain JV with Alstom to work on UK rail electrification programme

12th Feb 2014 11:05

ABC Electrification, the joint venture between UK engineering groups Babcock and Costain and French transport firm Alstom, has been appointed to Network Rail's two billion-pound National Electrification Programme.ABC will be one of the four suppliers to help Network Rail to electrify more than two thousand miles of Britain's railway over the next seven years.The joint venture, in which each party holds an equal share, has been awarded two out of the six geographical areas within the programme, covering central and western England and Wales.The contract for ABC is valued at £900m over the initial seven-year term, with an option to extend it for a further three years.Babcock's Chief Executive said he was "delighted" that ABC has been selected as one of the framework suppliers for the contract."Developing long-term strategic partnerships is key to our business model and we look forward to continuing to build on our strong relationship with Network Rail," he said.Babcock was trading 2.4% higher after the announcement, while Costain added 1.2%.BC