Re Contract

RNS Number : 4226C

Carillion PLC

01 September 2008

 

1 September 2008

Carillion joint venture secures £3 billion contract 

for MoD's Royal School of Military Engineering 

Support services and construction company Carillion, in joint venture with Babcock, has secured a 30-year, £3 billion contract for the provision of training and training support, infrastructure and services at the Royal School of Military Engineering (RSME) in Medway, Kent and Minley, Hampshire. 

The joint venture, Holdfast, will deliver some £300 million of capital works, for both new and refurbished soldier accommodation, including around 1,700 soldier bed spaces; training enhancements; more efficient use of the training estate; lower running costs and greatly improved facilities as well as the introduction of retail, catering and leisure to deliver a family-friendly environment.  This will also enable about 300 military personnel to return to the Field Army from the Training Division.

The joint venture partners will invest a total of £17.4 million of equity in this project, with Carillion investing £5.5 million. 

Holdfast is now entering a lead-in period with services to be delivered by Babcock due to start in January 2009. The £300 million capital works programme, involving construction and refurbishment, will be carried out by Carillion over the first seven years of the contract.

Under the contract, the responsibility for training delivery will be shared between the RSME and Holdfast, with the focus on the delivery of relevant training in an efficient and effective way. 

John McDonough, chief executive of Carillion, said: 'We look forward to delivering improved facilities to meet the existing and future training requirements of the RSME. This builds on the excellent relationship we have developed with the MoD across a range of contracts, the largest of which is the £12 billion Allenby Connaught Public Private Partnership project.'  

Notes to editors 

Carillion is the UK's leading support services company, with a substantial portfolio of Public Private Partnership projects and an extensive construction business.  The Group has annual revenue of around £5 billion, employs some 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean. 

In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services. 

In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.

Carillion has a substantial portfolio of equity investments in Public Private Partnership projects, particularly in the Defence, Education, Health and Transport sectors.

In the inaugural Sunday Times Best Green Companies Awards in May 2008, Carillion secured first place in the category for large and medium-sized companies with high environmental impact and second place overall.

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

For further information contact 

John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426

 

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