The £500M London Underground Northern Line extension from Kennington to Battersea design and build contract has been awarded to a Ferrovial Agroman/Laing joint venture.
The contract will be for six years and covers the main construction works, which will get under way in spring next year. New stations at Nine Elms and Battersea could be open by 2020 subject to funding and permission to build and operate the extension.
The project will help regenerate the Nine Elms area by cutting journey times to the West End and the City to just under 15 minutes, supporting up to 25,000 new jobs and 16,000 new homes.
Jobs generated in constructing the scheme, including around 50 apprenticeships through the supply chain, will be spread across the UK.
London Underground managing director Mike Brown said: “This is an important step in ensuring the delivery of this vital extension which will significantly improve transport links in the area.
“As our population grows faster than any other European city, the case for stable and sustained investment in London's transport network has never been stronger,” he added.
The full cost of the scheme is expected to be up to £1Bn. This is being funded entirely through contributions from developers including those involved in the Battersea Power Station redevelopment. From 2016 a new Enterprise Zone is expected to attract further developments to the area.
This contract award is the culmination of a competitive procurement process that began last year when LU issued an OJEU notice asking for expressions of interest from the industry for the design and build contract. The joint venture was named preferred bidder in July.
A public inquiry to consider the Transport and Works Act Order application to extend the Northern line ran from 19 November to 20 December 2013 and was conducted by an independent Inspector. A decision on the Order is anticipated in autumn this year.
