Canadian Contract win (9159M)
August 24 2011 - 2:10AM
UK Regulatory
TIDMCLLN
RNS Number : 9159M
Carillion PLC
24 August 2011
24 August 2011
Carillion secures contract and preferred bidder positions for
long-term road maintenance and Local Authority facilities
management contracts worth up to GBP250 million.
In Canada, Carillion has secured a contract in Ontario and a
preferred bidder position in Alberta for road maintenance work
worth in the region of GBP200 million over 11 years.
In Ontario, Carillion has been awarded an 11-year Area
Maintenance contract for the Huntsville area of Ontario by the
Ontario Department of Transportation. The contract is expected to
be worth some GBP83 million, excluding inflation adjustments that
will apply from the end of year one. Under the contract, which is
due to start on 1 May 2012, Carillion will provide year-round
inspection and reactive maintenance services for existing
Provincial highways. These services will include the routine
management and maintenance of highway infrastructure and furniture,
including emergency response services, as well as winter
maintenance, such as snow clearance and salting. Carillion also
expects to carry out preventative maintenance work, which will be
additional to the base contract value.
In Alberta, Carillion has been appointed as the preferred bidder
for a 10-year contract to provide similar year-round management and
maintenance services for Provincial highways in three Maintenance
Areas in the Eastern Central Region of Alberta, by the Alberta
Department of Transportation. The contract, which is due to start
on 1 August 2012, is expected to be worth some GBP110 million,
excluding inflation adjustments.
This reinforces Carillion's position as the largest provider of
outsourced highway maintenance services in Canada and reflects our
ability to provide high-quality cost-effective solutions tailored
to the needs of our customers with whom we have developed long-term
partnerships.
In the UK, Carillion has been selected as the preferred bidder
for contracts to provide hard and soft facilities management
services for two Local Authorities. These new outsourcing
contracts, which are expected to be worth in the region of GBP50
million over four years, will deliver cost-effective solutions to
help these Authorities reduce their running costs. These contracts
demonstrate the increasing level of activity in the Local Authority
outsourcing market that is also reflected in our growing pipeline
of contract opportunities.
Commenting, Carillion Chief executive, John McDonough, said: "We
are delighted to have secured these new contracts and preferred
bidder positions. In Canada, we continue to consolidate our
leadership in delivering long-term highways maintenance services.
The preferred bidder positions we have secured in the UK is
indicative of the growing trend towards more outsourcing by public
sector organisations seeking efficient and effective solutions that
enable them to achieve significant cost savings."
For further information contact:
John Denning, Director Group Corporate Affairs +44 (0) 1902
316426
Finsbury - James Murgatroyd or Gordon Simpson +44 (0) 207
2513801
Notes to editors
Carillion is a leading support services company with a
substantial portfolio of Public Private Partnership projects and
extensive construction capabilities. The Group had annual revenue
in 2010 of GBP5.1 billion, employs around 50,000 people and
operates across the UK, in the Middle East and Canada.
The Group has four business segments.
Support services - this includes facilities management,
facilities services, energy services, utility services, road
maintenance, rail services and consultancy services.
Public Private Partnership (PPP) projects - this includes our
investing activities in PPP projects in our chosen sectors of
Defence, Health, Education, Transport, Secure and other Government
accommodation.
Middle East construction services - this includes our building
and civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this
includes our building, civil engineering and developments
activities in the UK and our construction activities in Canada.
This and other Carillion news releases can be found at
www.carillionplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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