Carillion Expects GBP190 Million Of Revenue From Irish School Project

Tue, 26th Jul 2016 07:17

LONDON (Alliance News) - Carillion PLC Tuesday said a project to build and operate a series of educational institutions in Ireland has reached financial closure whilst a company that it holds a controlling stake in has won a new contract in North America.

Carillion is part of a 50:50 joint venture with Dutch Infrastructure Fund and the pair have achieved financial closure on the Irish Schools Bundle 5 Public Private Partnership project that has been procured by the Department of Education & Skills alongside Ireland's National Treasury Management Agency.

Carillion and its partner will be responsible for financing, building, operating and maintaining five schools and an institute of further education located in counties Meath, Carlow, Wicklow and Wexford.

Carillion and Dutch Infrastructure will invest GBP9.0 million of equity in the project, split equally between the two, and Carillion said it will also carry out the construction and deliver support services over the 27-year concession period.

The London-listed company said those construction activities alongside its equity interest will mean the project will generate around GBP190.0 million of revenue for the business.

Separately, EUS-Rokstad, a joint venture between Emera Utility Services and Rokstad Power, a business in which Carillion holds a 60% stake, has won a new contract in North America.

The venture has been chosen by NSP Maritime Link Inc, a subsidiary of Emera Inc, as the transmission line contractor for its Maritime Link project that will transmit energy from Newfoundland to Nova Scotia and will connect Newfoundland to the North American grid for the first time in history.

The joint venture will complete the high voltage direct current transmission line link under the contract, which is worth a total of GBP86.0 million to the joint venture.

Carillion shares were trading up 0.5% to 261.0 pence per share on Tuesday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Carillion Plc