Re Contract

Carillion PLC
25 November 2004



25 November 2004

Carillion reaches financial close on first overseas AFP hospital project

Support services and construction company Carillion, in joint venture with its
two partners, has reached financial close on an agreement to build a new
Canadian hospital facility using an Alternative Financing Partnership (AFP -
similar to Public Private Partnerships in the UK).

The Healthcare Infrastructure Company of Canada will finance, design, build,
property manage, maintain and provide non-clinical services at the new 608-bed
William Osler Health Centre facility in Brampton, Ontario over the life of the
25-year concession. With a total construction value for the project of £204
million, Ontario's sixth largest hospital was chosen as a pilot project for this
innovative approach to hospital development in Canada.

In addition to investing equity in the project, Carillion will be responsible
for the provision of non-clinical services and will be a member of a separate
joint venture responsible for construction. The project is expected to generate
around £420 million of construction and facilities management turnover for
Carillion over the life of the concession.

Commenting on the appointment, Carillion Chief Executive John McDonough said,
'We are delighted to have reached financial close on Canada's first hospital to
use alternative financing and our first of this kind outside the UK. This
demonstrates our ability to transfer alternative financing concepts and business
services skills to our well-established international businesses, which is an
important part of our strategy for growth.

'We look forward to working closely with William Osler Health Centre to provide
a state of the art hospital and the services necessary to support the delivery
of first class healthcare.'


Notes to editors

The Healthcare Infrastructure Company of Canada is a partnership between
Borealis Infrastructure Management, Carillion Canada Inc and EllisDon
Corporation.

Carillion is now the preferred bidder on two further hospitals, an education
project, an Independent Sector Treatment Centre and a social housing project
worth a total of £1.3 billion.

In addition, Carillion has already applied alternative financing to six
hospitals, all of which were completed on time and to budget.


For further information contact

John Denning, Director Group Corporate Affairs 01902 316384
Paula Manning, Corporate Communications 01902 316444



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