London Underground (LU) has awarded a £500m design and build contract for the Northern line extension to Ferrovial Agroman Laing O’Rourke.
Work under the contract includes the construction of Northern line extension from Kennington to Battersea via Nine Elms.
The project is expected to cost approximately £1bn and is being funded entirely through developer contributions from Battersea Power Station and other developers.
LU 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.
"It is vital that our proposal is delivered cost effectively for our passengers, taxpayers and the local boroughs and developers, who are helping to fund the extension.
"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."
Upon completion, the project will reduce journey times to the West End and the City to less than 15min. It is also expected to create 25,000 new jobs, as well as 16,000 new homes.
LU is currently modernising major stations, in order to deliver a 30% increase in passenger capacity.
Upgrade work on the Northern, Circle, District, Hammersmith & City and Metropolitan lines is currently underway.
Image: Battersea Power Station. Photo: courtesy of Nigel Cox.