31st Jul 2006 07:00
Carillion PLC31 July 2006 Monday 31 July 2006 Carillion joint venture reaches financial close on £880m PPP project for the Ministry of Defence Support services and construction company Carillion and its 50:50 joint venturepartner, HSBC Infrastructure Fund Management, have reached financial close on aPPP project to redevelop, manage and operate the Northwood Headquarters, home ofthe Chief of Joint Operations. The project is expected to generate some £880 million of revenue for Carillionover the 25-year concession contract, including construction, support servicesand Carillion's share of revenue in the joint venture, special purpose company. The contract will involve the provision of fully serviced accommodation on theexisting 43-acre site. Carillion will invest some £10 million of equity in theproject, 50 per cent of the total equity to be invested by the joint venturepartners. Carillion will carry out a £150 million construction programme over a five-yearperiod and will also provide a wide range of support services, worth in theregion of £440 million over the contract period. Service delivery commencesimmediately and includes domestic services, estate management, documentproduction and handling stores, transport and waste disposal. Commenting, Carillion's chief executive, John McDonough said: "This contract,which closely follows Carillion's success in securing the £12 billion AllenbyConnaught project for the Ministry of Defence, further reinforces our leadingposition in the PPP market and also as a major supplier in the Defence sector. "This project plays to our strengths as a provider of integrated solutions forlarge complex projects where we can apply our wide range of skills andresources, including private finance, support services, design and construction.These strengths and our commitment to working in partnership with the Ministryof Defence were key to our success in securing this contract. "We look forward to working with the Ministry of Defence to deliver first classaccommodation and services for those who live and work at Northwood." For further information contactPaula Manning, Corporate Communications 01902 316444 Notes to Editors The 43-acre site at Northwood includes the Chief of Joint Operations, Fleet andNATO Headquarters and provides employment for over 2,000 military and civilianpersonnel. The Ministry of Defence has announced that the total value of the project is£1.15 billion, which represents the indexed value of the unitary payments itexpects to make to the Special Purpose Company over the life of the concessioncontract. Carillion is a leading provider of integrated solutions for buildings,infrastructure and services in the UK, with well-established internationalbusinesses. Carillion has annual revenue in the region of £4 billion and hasover 40,000 employees. It delivers high quality, cost effective and sustainablesolutions using its wide range of skills and resources. Its key target marketsare defence, education, health and transport (rail and road infrastructure),building and facilities management for public and private sector customers.Carillion is also a leading provider of Public Private Partnership projects andhas a portfolio of 31 financially closed projects in which it has invested, orhas commitments to invest, a total of approximately £180 million of equity. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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