Carillion PLC Carillion Joint Ventures awarded contract by MoD (0078O)
November 01 2016 - 9:30AM
UK Regulatory
TIDMCLLN
RNS Number : 0078O
Carillion PLC
01 November 2016
1 November 2016
Carillion Joint Ventures awarded construction and support
services contract by UK Ministry of Defence worth over GBP1.1
billion
Joint Ventures between Carillion and KBR (50:50) have been
awarded construction and facilities management support services
contracts to support the Army Basing Programme (a series of unit
moves and re-roles within the UK, and the return and resettlement
of troops from Germany by 2019) - with delivery across Salisbury
Plain Training Area and at Aldershot - in total worth over GBP1.1
billion.
The Aspire Defence Capital Works Joint Venture will design and
construct 130 new buildings, together with extensions and
alterations to existing buildings and associated infrastructure.
The construction works have an estimated value of GBP680 million,
of which Carillion's share will be 50 per cent or some GBP340
million. Work is expected to start immediately with completion
scheduled for 2020.
The Aspire Defence Services Joint Venture will provide
facilities management and maintenance for the assets to be
constructed and also for the increased military population across
the garrisons under the Project Allenby/Connaught (PAC), a 35-year
contract let by the UK Ministry of Defence to Aspire Defence
Limited in 2006. This contract variation will add approximately a
further GBP430 million of support services revenue over the
remaining 25-year contract, of which Carillion's share will be
approximately GBP215 million. This additional service provision
will begin as soon as construction of the first asset is completed,
which is expected to be in May 2017, and will run until 2041.
Since contract signing in 2006, Aspire Defence Capital Works has
continued to deliver the construction element of PAC, the largest
infrastructure Private Finance Initiative (PFI) project ever let by
the UK Ministry of Defence, with approximately 550 new and
refurbished buildings completed to date, on time, safely and to
budget in an eight-year programme, enhancing soldiers' living and
working accommodation at Tidworth, Perham Down, Bulford, Larkhill,
Warminster and Aldershot. Aspire Defence Services has been
successfully delivering hard and soft facilities management and
maintenance services under PAC for a decade.
Carillion Chief Executive, Richard Howson, said: "We are
delighted that Aspire Defence Limited and its sub-contractors
Aspire Defence Capital Works and Aspire Defence Services have been
selected by the Ministry of Defence to deliver this major element
of the Army Basing Programme. I believe this reflects in the
successful delivery of new living and working accommodation along
with associated assets for Project Allenby/Connaught, together with
the high-quality, value for money services that will continue to be
provided for this project. We look forward to continuing our strong
relationship with Aspire Defence Limited and to working together on
behalf of the Ministry of Defence to create the accommodation and
deliver the facilities manage services needed for the successful
delivery of its Army Basing programme."
Notes to Editors
Carillion is a leading integrated support services company with
a substantial portfolio of Public Private Partnership projects and
extensive construction capabilities. The Group had annual revenue
in 2015 of some GBP4.6 billion, employs around 46,000 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
investing activities in PPP projects for Government buildings and
infrastructure, mainly in the Defence, Health, Education, Transport
and Secure accommodation sectors.
Middle East construction services - this includes building and
civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this
includes building, civil engineering and developments activities in
the UK and construction activities in Canada.
This and other Carillion news releases can be found at
www.carillionplc.com
For more information
John Denning, Director Group Corporate Affairs, Carillion plc +
44 (0) 1902 316426
Finsbury
James Murgatroyd or Gordon Simpson + 44 (0) 207 2513801
This information is provided by RNS
The company news service from the London Stock Exchange
END
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