AMEC will extend DLR from City Airport to Woolwich Arsenal in £240m PPP joint venture

The PPP contract to extend the DLR to Woolwich Arsenal has reached financial close.

The contract will be carried out by Amec and the Royal Bank of Scotland in a 50/50 joint vernture called Woolwich Arsenal Rail Enterprises.

Work will involve constructing a 2.5km extension under the Thames from King George V station to Woolwich Arsenal where a new DLR station will be integrated with the existing rail station.

The contract extends the City Airport DLR extension currently being built by another AMEC/RBS joint venture. This is due to open to the public by the end of 2005.

WARE has raised £240 million to finance the project comprising a bank loan from the RBS and a loan from the European Investment Bank with the balance being made up of equity from AMEC and RBS.

AMEC will undertake the design, engineering and construction of the extension and its long-term maintenance over the 30-year concession period.

AMEC Chief Executive Peter Mason said: 'We are delighted that contracts have been finalised on this prestigious project.'

Financial close of the DLR exenstion means AMEC's UK PPP portfolio now comprises 10 projects, of which five are now operational. AMEC currently has around £30m invested in PPP projects, and is committed to invest a further £25m in projects currently under construction - including the £12m equity now committed for the WARE project.

Amec is also currently preferred bidder on a further two UK PPP projects and the Incheon Bridge project in Korea.