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BAA allocates £210m to new capital projects in 2013/14

BAA has revealed it will allocate £90 million to Crossrail and £210m to new projects under its £735m capital works programme in 2013/14.

The remainder of the budget will be spent on projects already underway including on the construction ofTterminal 2 and baggage facility upgrades at Terminal 3.

The Civil Aviation Authority revealed last month that a total of £735m would be spent in 2013/14 after it extended Heathrow’s current regulatory period by one year to 31 March 2014 in response to upcoming government reforms to the framework for the economic regulation of UK airports.

BAA has allocated £735m for the year as it aims to enter its sixth regulatory period since being privatised working in line with the new Airport Economic Regulation Bill.

The current regulatory period was initially expected to generate £4.8bn in capital works with the final figure now expected to be around £4.5bn, meaning the £735m is less than the average works completed per year under the current framework.

However a BAA spokesperson insisted contractors would not be missing out as the total capital works allocation was spent where necessary across the regulatory period and that the £735m figure was based on 07/08 prices and did not represent a significant drop in funding.

She added: “£735m is still a sizeable chunk of money to be spent and there will still be a significant amount of work being competitively tendered that year.”

In its 2011 first quarter results, BAA revealed that it spent £204.7m on capital works at Heathrow in the three months to 31 March. It also included a progress update on construction of the new Terminal 2.

BAA said: “A further three of the main terminal building’s steel cores were installed in the first quarter of 2011 so that nine of the total 12 steel cores were in place by the period end.

“In addition, over 50 per cent of the steelwork for the terminal building and its roof was in place. The base slab and perimeter wall of the terminal’s substructure has also been completed. Work on the terminal superstructure, including the façade and roof panels, should be largely completed during 2011 with the building expected to be weather tight by early 2012.”

Among the most recent contracts to be signed for work at Heathrow was Laing O’Rourke’s £77m deal to construct a multi-storey car park at Terminal 2, with work due to start in May.

Crossrail will link central London with Maidenhead in the West, and with Shenfield and Abbey Wood in the West. It will also have a branch connecting to Heathrow.

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