6th Apr 2006 12:04
Carillion PLC06 April 2006 6 April 2006 Carillion joint venture reaches contract award on the MoD's largest estates PPP contract worth around £12 billion Support services and construction company Carillion and its joint venturepartners have been awarded the £12 billion Project Allenby/Connaught PPPcontract by the Ministry of Defence. Aspire Defence, the joint venture between Carillion (50 per cent), Kellogg Brownand Root (KBR) (45 per cent) and HSBC (5 per cent) will deliver Project Allenby/Connaught, which is the MoD's largest Estates Public Private Partnership (PPP)contract to date. The project will transform the Army garrisons at Aldershot andacross the Salisbury Plain area and provide support services for these garrisonsfor the next 35 years. The joint venture partners will invest a total of £120 million of equity in thisproject. The total nominal revenue for Aspire over the 35-year concession periodwill be approximately £12 billion (£8 billion in real terms based on January2004 prices). Carillion will invest £60 million of equity in the project and itsshare of Aspire's revenue will be around £6 billion. Including Carillion's shareof the construction and support services work to be provided as part of thisproject, the contract is expected to generate a total of approximately £9.5billion of revenue for the Carillion Group. The contract involves a 10-year construction programme at four garrisons withcomprehensive facilities management services for the 35-year concession period. The £1.2 billion construction programme will be carried out by a 50:50 jointventure between Carillion and KBR for garrisons at Aldershot and acrossSalisbury Plain, at Tidworth, Bulford, Perham Down, Larkhill and Warminster.Around 11,000 en-suite bedrooms will be provided, including approximately 7,000new bedrooms in single soldier living accommodation blocks and over 4,000bedrooms refurbished to the same modern standards. In addition, a comprehensiverange of new facilities, including new dining centres, theatres and communitycentres will be built to provide modern high-street style living for Armypersonnel. A second 50:50 joint venture between Carillion and KBR will provide thegarrisons with a wide range of support services that are expected to generatearound £5.7 billion of revenue over the 35-year concession period. Theseservices include stores management, grounds maintenance, mess management,catering, utilities, infrastructure and fleet management. In addition, the jointventure will provide the garrisons with a 24/7 helpdesk facility that willoperate 365 days a year and act as a central co-ordination point for customersupport. Commenting, Carillion's chief executive John McDonough said: "The contractaward for Project Allenby/Connaught is an important milestone in the developmentof PPP projects. It almost doubles the value of our order book and furtherreinforces Carillion's leading UK position both in PPPs and as a major supplierin the Defence sector, one of our key growth sectors. This project plays to ourstrengths as a provider of integrated service solutions for large complexprojects, where we and our joint venture partners can apply our wide range ofskills and resources, including private finance, support services andconstruction. "At the heart of our approach lies a commitment to using innovative ways ofworking to deliver high quality services while improving efficiency to maximisevalue for money for the Ministry of Defence. Whether it's construction, plannedor reactive maintenance or facilities management, we are committed to working inpartnership with the Ministry of Defence and all our stakeholders to deliver afirst-class service that will transform living accommodation and facilities forArmy personnel in the South of England." The Under Secretary of State for Defence, Mr Touhig, said: "Project Allenby /Connaught is the largest estates PPP project the MoD has ever undertaken andwill see the significant redevelopment of Aldershot Garrison and garrisons inthe Salisbury Plain area, including the reconstruction of several new barracks.In all, the project will provide 18,000 military and civilian staff with brandnew or refurbished living and working accommodation. "The award of this contract is a major step forward and I look forward to a longand fruitful partnership with Aspire Defence Ltd." For further information contactJohn Denning, Director Group Corporate Affairs, Carillion plc 01902 316426 Notes to EditorsCarillion is a leading provider of integrated solutions for buildings,infrastructure and services in the UK, with well-established internationalbusinesses. As a FTSE 250 company with annual revenue in the region of £4billion and over 40,000 employees, the Group delivers high quality, costeffective and sustainable solutions using its wide range of skills andresources. Its key target markets are defence, health, education and transport(rail and road infrastructure) and building, facilities management and supportservices for public and private sector customers. Carillion is also a leading provider of Public Private Partnership projects andhas a portfolio of 30 financially closed projects in which it has invested, orhas commitments to invest, a total of approximately £171 million of equity. Inaddition, Carillion is the preferred bidder for a further four PPP projects inwhich it expects to invest some £24 million of equity. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Carillion Plc