Balfour Beatty gets on the grid

has been appointed as preferred partner by

for a new five-year alliance contract worth approximately £550m million.

The contract is to upgrade and develop the electricity transmission network in the eastern half of England. There is an option to extend the alliance for a further five years.

According to a statement, the contract, which is part of one of the largest procurement exercises undertaken by National Grid, will support their increased investment in the electricity transmission network.

The works are required to connect new infrastructure such as wind farms and new generation plant to the grid. They will also cover the enhancement and replacement of existing assets.

The contract, which will come into force in April 2007, is one of two overhead line and four sub-station alliances announced by National Grid today.