Five-year contract to support electricity transmission in US will be joint venture with MJ Electric

Balfour Beatty has been selected as the preferred provider in a joint venture project worth $1.7bn.

The engineering and construction group will support the delivery of National Grid's US electricity transmission capital investment programme in New England.

The five-year contract will include the design and build of substations and transmission lines in the Massachusetts, Rhode Island and New Hampshire.

It will be carried out by the New Energy Alliance, a joint venture between Balfour Beatty and MJ Electric. The contract covers overhead line and substation electrical work for new build projects.

The total value of the capital projects for both New England and for New York State, where National Grid has selected another joint venture partner for transmission and substation works, is around $1.7bn.

Contract award is conditional on reaching agreement on commercial terms and is expected to be finalised by 1 April 2009.