Carillion PLC Carillion Joint Ventures awarded contract by MoD (0078O)

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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

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November 01, 2016 09:30 ET (13:30 GMT)