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Aecon/Black & Veatch joint venture awarded $60 million contract for peaking plant

Jun 30, 2010

Regina, SK – June 30, 2010: Aecon Group Inc. (TSX:ARE) announced today a joint venture, in which its Industrial Division is a partner, has been awarded an approximately $60 million engineering, procurement, and construction contract by Northland Power for an 86 MW gas-fired peaking plant in Spy Hill Saskatchewan.

The joint venture is owned 60% by Aecon and 40% by Black & Veatch, a leading U.S.-based engineering, consulting and construction company.

Aecon will provide comprehensive project management and construction services including civil, mechanical, electrical and instrumentation installation work for the project. Black & Veatch will perform the balance of plant engineering including the integration of the gas turbines and engineered equipment procurement, as well as plant start-up management and commissioning. Completion of the Spy Hill Peaking Plant is expected in the fall of 2011.

“This project highlights the combined strengths of our Industrial group’s expertise in power generation in Ontario and Lockerbie’s strength in the Western market,” said Paul Koenderman, Executive Vice President, Aecon Industrial Group. “This contract is evidence that this collective expertise to perform power generating work in Western Canada is now bearing fruit.”

Aecon Group Inc. is Canada’s largest, publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the 50 Best Employers in Canada as published by Report on Business Magazine.