Re Contract
February 26 2003 - 4:26AM
UK Regulatory
Wednesday 26 February 2003
See below
Serco Group selected by Ontario Ministry of Transportation to provide Driver
Examination Services
Serco Group plc ("Serco") is pleased to announce that it has been selected by
the Ministry of Transportation ("MTO"), Government of Ontario, Canada to
provide driver examination services under a 10-year public private partnership.
Following a transition period, the contract is anticipated to commence in
August 2003.
Under the contract terms Serco will provide all driver examination services
required by the 12 million residents of Ontario to obtain or upgrade all
classes of driver's licenses. Driver examination services include all
processing of initial applications and the provision of all vision tests,
knowledge tests, and road tests. Serco will provide driver examination services
from 55 Driver Examination Centres and 37 "travel points" located in major
cities and smaller communities throughout Ontario.
In the coming months, Serco will launch a re-branded driver examination
services business for Ontario and introduce a range of customer service
improvements. This will include harnessing leading-edge technology to
streamline the processing of license applications, improve the provision of
knowledge tests, and support road test appointment scheduling and delivery.
The contract is expected to generate C$600 million in revenue over the 10-year
concession. Serco will pay the Ontario government a concession fee of
C$114million, which will be funded by up to C$15 million from Serco's existing
cash resources and the remainder from non-recourse debt to be provided under a
ring fenced facility. The contract will be immediately earnings enhancing.
Christopher Hyman, Serco Group's Chief Executive said:
"This is a milestone contract for Serco in our continuing growth in the North
American market. I am very pleased that the Ontario government has selected
Serco to transfer this important public service. We look forward to working in
partnership with MTO and our new colleagues to provide improvements in customer
service to Ontario residents."
- Ends -
For further information please contact Serco Group plc: T: +44 (0)1932 755900
Ben Woodford - Corporate Communications Director
Issued:
Release:
Contact:
Serco Group, Inc.
20 E Clementon Road, Suite 102 South
Gibbsboro, New Jersey 08026
United States
T +1 856 346 8800
F +1 856 346 8463
Serco Group Pty Limited
Level 10, 90 Arthur Street
North Sydney, NSW 2060
Australia
T +61 (0)2 9964 9733
F +61 (0)2 9964 9924
Serco Group plc
Dolphin House, Windmill Road
Sunbury-on-Thames, Middlesex TW16 7HT
United Kingdom
T +44 (0)1932 755900
F +44 (0)1932 755854
NEWS RELEASE
www.serco.com
END