AMEC Wins Major Contract To Restore Power In Iraq

11/03/2004


AMEC, the international project management and services company, has won a major contract in Iraq worth up to US$500 million (AMEC share up to US$250 million). AMEC, which won the contract with Fluor, its joint-venture partner in Iraq, is the first UK company to win major reconstruction work in Iraq.

"We are delighted to confirm we have won our first big contract in Iraq, " said Sir Peter Mason, AMEC's chief executive. "While we and Fluor are already on the ground with around 2,000 people near Baghdad, this is a much more sizeable piece of work across the whole of Iraq and confirms our important role in the reconstruction of the country."

AMEC, which announced its preliminary results yesterday, said that it was proud to be one of the few UK companies with the skills and experience to participate in the reconstruction.

"Our results yesterday confirmed that AMEC is no longer just a UK construction company but a project management and services company playing on the world stage," said Sir Peter. "This win reinforces that important message."

The contract, to provide engineering services for the restoration, rehabilitation, operation and maintenance of power generation facilities across Iraq, is awarded on a cost-reimbursable basis.

The contract is one of ten major contracts likely to be awarded over the next few weeks by the Coalition Provisional Authority (CPA) the US-led body in charge of Iraq reconstruction. Work on this contract will start immediately and will initially involve the mobilisation of a further 80 Fluor AMEC personnel, as well as many more Iraqi subcontractors. This work will take place during 2004 and 2005.

AMEC also has bids outstanding for six further contracts for work restoring power, water, transportation and justice infrastructure, totalling up to US$3.5 billion and expects to hear about the outcome of these later this month or in early April.

AMEC noted that the uncertain environment in Iraq where contracts could change or be delayed at any time meant AMEC would take a cautious view of the value of contracts in Iraq. "We believe that any projections must be regarded as provisional at this stage," said Sir Peter.

AMEC also stressed that safety would be of paramount importance and that it would be retaining its own security services in addition to the security teams provided by the coalition forces

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