GILBERT/COMMONWEALTH JOINT VENTURE NEGOTIATING THREE-YEAR CONTRACT WITH TVA
GILBERT/COMMONWEALTH JOINT VENTURE
NEGOTIATING THREE-YEAR CONTRACT WITH TVA
READING, Pa., Nov. 15 /PRNewswire/ -- Gilbert/Commonwealth, Inc., in a joint venture with Union Boiler Company and Morrison Knudsen Corporation (NYSE: MRN), is negotiating a three-year contract with Tennessee Valley Authority (TVA), it was announced today.
Gilbert/Commonwealth, a Gilbert Associates, Inc. (NASDAQ: GILBA) subsidiary, has a majority interest in the joint venture.
The contract calls for the joint venture to perform supplemental maintenance and associated construction at coal-fired and hydroelectric plants for a portion of TVA's service territory. TVA's board of directors is expected to consider the contract at its meeting next Wednesday. The joint venture would be headquartered in Knoxville, Tenn.
While the potential value of the contract to the joint venture is estimated at $80 million for each of the first three years, the majority of that represents craft labor expense. The contract would include extension provisions for up to four additional years.
/CONTACT: Gary A. Kunkelman of Gilbert Associates, 215-775-5900/
(MRN GILB) CO: Gilbert/Commonwealth, Inc.; Union Boiler Company; Morrison Knudsen
Corporation; Tennessee Valley Authority ST: Pennsylvania, Tennessee IN: CST SU: CON LJ-KA -- PH006 -- 1410 11/15/91 09:40 EST