Carillion PLC HS2 Contract Award (2144L)

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RNS Number : 2144L

Carillion PLC

17 July 2017

17 July 2017

CEK (Carillion, Eiffage, Kier) joint venture award 2 HS2 Lots worth GBP1.4 bn

Carillion, the integrated support services company, is pleased to announce that the CEK joint venture partnership consisting of Carillion, Eiffage and Kier, has been successful in its bid for the C2 and C3 contracts.

HS2 is the 190 km high speed line linking London with Birmingham and the West Coast Main Line near Lichfield and is planned to open in 2026 and will increase capacity and improve journey times between these two cities and bring economic growth to the Midlands.

All the packages have been let as two-part design and build contracts, to 'encourage innovation and flexibility' in delivery and collaboration across the supply chain and with HS2 Ltd.

   --    Lot C2 - North Portal Chiltern Tunnels to Brackley GBP724m 
   --    Lot C3 - Brackley to Long Itchington Wood Green Tunnel South Portal GBP616m 

These Lots will be awarded in two stages. Stage One will be a 16-month period to develop a design, a programme and a Target Cost for the construction of the works. Stage Two is the construction of the main works and this is expected to take between four and five years to complete.

Keith Cochrane, Interim CEO, Carillion, said

"We are delighted that our Joint Venture, CEK, has been selected to deliver two of the three Central contracts for HS2 Phase 1, the London to Birmingham section of the route, reflecting the strength of our Joint Venture. We look forward to working in close collaboration with HS2 to deliver this iconic project.

"Carillion is a leading supplier of infrastructure services with top two positions in both the UK rail and highways sectors, where we work in partnership with key customers, including Network Rail, Highways England and HS2. We expect the UK Government's objective of generating economic growth through investing in infrastructure to continue creating opportunities for us to grow our business in these core markets."

Notes to editors

CEK joint venture

The joint venture brings together three companies with outstanding expertise in the design, construction, operation, financing and maintenance of railway networks in Europe, including high speed rail systems and their associated infrastructure.

Carillion is a market leading support services group focused on infrastructure and property services with a portfolio of Public Private Partnership projects, selective construction capabilities and a sector leading ability to deliver sustainable solutions. The Group had annual revenue in 2016 of some GBP5.2 billion, employs around 43,000 people and operates across the UK, in the Middle East and Canada.

This and other Carillion news releases can be found at www.carillionplc.com.

Eiffage is one of Europe's leading construction and concessions companies. The Group's activities are organised as seven business lines: construction, real estate, roads, civil engineering, structural steel, energy and concessions. Thanks to the experience of more than 66,000 employees, Eiffage generated revenues of EUR14bn in 2014, including 16 percent outside France.

Kier Group is a leading integrated property, residential, construction and services group operating across a range of sectors including defence, education, housing, industrial, power, transport and utilities. The group employs over 24,000 people worldwide and with a turnover of GBP3.2bn (approx. EUR4.2bn).

Notes to Editors

For more information

John Denning, Director Group Corporate Affairs, Carillion plc [phone]

Kellie McAvoy, Head of Investor Relations [phone]

Bell Pottinger

Liz Morley [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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July 17, 2017 02:19 ET (06:19 GMT)