Carillion Plc Regulatory News (CLLN)

24 August 2011

Carillion secures contract and preferred bidder positions for long-term road maintenance and Local Authority facilities management contracts worth up to £250 million.

In Canada, Carillion has secured a contract in Ontario and a preferred bidder position in Alberta for road maintenance work worth in the region of £200 million over 11 years.

In Ontario, Carillion has been awarded an 11-year Area Maintenance contract for the Huntsville area of Ontario by the Ontario Department of Transportation. The contract is expected to be worth some £83 million, excluding inflation adjustments that will apply from the end of year one. Under the contract, which is due to start on 1 May 2012, Carillion will provide year-round inspection and reactive maintenance services for existing Provincial highways. These services will include the routine management and maintenance of highway infrastructure and furniture, including emergency response services, as well as winter maintenance, such as snow clearance and salting. Carillion also expects to carry out preventative maintenance work, which will be additional to the base contract value.

In Alberta, Carillion has been appointed as the preferred bidder for a 10-year contract to provide similar year-round management and maintenance services for Provincial highways in three Maintenance Areas in the Eastern Central Region of Alberta, by the Alberta Department of Transportation. The contract, which is due to start on 1 August 2012, is expected to be worth some £110 million, excluding inflation adjustments.  

This reinforces Carillion's position as the largest provider of outsourced highway maintenance services in Canada and reflects our ability to provide high-quality cost-effective solutions tailored to the needs of our customers with whom we have developed long-term partnerships.

In the UK, Carillion has been selected as the preferred bidder for contracts to provide hard and soft facilities management services for two Local Authorities. These new outsourcing contracts, which are expected to be worth in the region of £50 million over four years, will deliver cost-effective solutions to help these Authorities reduce their running costs. These contracts demonstrate the increasing level of activity in the Local Authority outsourcing market that is also reflected in our growing pipeline of contract opportunities.

Commenting, Carillion Chief executive, John McDonough, said: "We are delighted to have secured these new contracts and preferred bidder positions. In Canada, we continue to consolidate our leadership in delivering long-term highways maintenance services. The preferred bidder positions we have secured in the UK is indicative of the growing trend towards more outsourcing by public sector organisations seeking efficient and effective solutions that enable them to achieve significant cost savings."

For further information contact:

John Denning, Director Group Corporate Affairs +44 (0) 1902 316426

Finsbury - James Murgatroyd or Gordon Simpson +44 (0) 207 2513801

Notes to editors

Carillion is a leading support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2010 of £5.1 billion, employs around 50,000 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 our investing activities in PPP projects in our chosen sectors of Defence, Health, Education, Transport, Secure and other Government accommodation.

Middle East construction services - this includes our building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes our building, civil engineering and developments activities in the UK and our construction activities in Canada.

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