Re Contract

Capita Group PLC 25 July 2002 25 July 2002 THE CAPITA GROUP PLC Capita forms unique partnership with four local authorities in Wales to deliver £83 million of transport infrastructure contracts and build a key business base in the region Capita has formed a unique partnership with four local authorities in South Wales to support transport infrastructure initiatives and deliver professional support services across the region. Capita has formed a new company with four local authorities, Monmouthshire, Torfaen, Blaenau Gwent and Caerphilly, in South Wales. The four authorities are contracting with the new company for ten years to provide services worth an estimated £83 million. Capita will own 51% of the new venture and is investing £1 million in consideration for acquiring its shareholding. The new venture will be jointly owned by Capita and the four authorities and assumes the business and assets of the Gwent Consultancy, a transport infrastructure business presently owned by five unitary authorities (the four new joint owners and Newport) in South East Wales. Commenting on the new partnership, Rod Aldridge, Executive Chairman of the Capita Group Plc said: 'Capita is delighted to be involved in this unique partnership and to be investing in developing business and job opportunities in Wales. This represents the first successful joint procurement with authorities of different political persuasion working closely together across historic boundaries to gain benefits for their communities. Our strategy will be to create a substantial infrastructure consultancy and professional support services centre from a new base in South Wales. The team has considerable experience of transport management, an area of business where we are already one of the top 10 providers and one that offers considerable potential for the Group. This venture also provides us with an opportunity to extend our full offering of professional support services to both public and private sector organisations in Wales, an area where we have limited penetration at present. We believe that the region is an area of major growth for the Group, particularly in the public sector where sector spend has recently increased from a current £9.4 billion to £11.8 billion in three years time, as part of the Comprehensive Spending Review.' The Secretary of State for Wales and MP for Torfaen, Paul Murphy, is delighted with the agreement to pursue the Joint Venture. He commented, 'The Government has always intended public and private sectors to work together, learning from each other's experience and drawing on each other's strengths. I am sure that both the local authorities and Capita will find enormous benefits and opportunities as well as some challenges as they put this unique partnership into effect.' Clive Grace, Chief Executive of Torfaen County Borough Council commented, 'What this Joint Venture Partnership will give us is substantially increased capacity, access to wider markets and greater innovation. It will provide a strong foundation for growth and make a significant contribution to the Welsh economy. I am delighted that we have been able to arrive at such a strong partnership with a private sector company of this standing. It really does show that local authorities can be at the forefront of innovation and improvement in the UK, leaders not followers, as we respond to change in the interests of the people we serve.' Gwent Consultancy is a successful public sector organisation that has developed and implemented major engineering projects with the Gwent local authorities and the Welsh Assembly (previously with the Welsh Office) since local government reorganisation. However, in a rapidly changing environment where the Government's modernising agenda is challenging conventional approaches the organisation needed to move forward or lose its position. New types of work requiring a greater range of disciplines meant that a new kind of company was needed, to survive and serve communities well in a modern market. The partnership with Capita will meet these challenges, widening the scope for future involvement in major infrastructure schemes and other business areas, securing the existing 200 skilled staff and bringing new, high quality jobs to the area. Gwent Consultancy has already secured the project management of a portfolio of PFI schemes, including the largest local authority PFI Scheme in Wales, namely the Newport Southern Distributor Road. Another project is the ground-breaking £5.6 million Llanhilleth Area Regeneration Project in Blaenau Gwent. This integrated project combines the historic Llanhilleth Workmen's Institute and a new school with community lifelong learning facility, a healthy living centre, new infrastructure, business property development and environmental projects. The new venture is planned to come into effect from 1st September 2002 and will be managed through a Board of Directors comprising representatives of Capita and the four local authorities. -ENDS- For further information: The Capita Group Plc 020 7799 1525 Rod Aldridge, Executive Chairman Paul Pindar, Chief Executive Shona Nichols, Group Marketing Director Capita Press Office 020 7544 3141 Torfaen County Borough Council 01495 766069 Sue Morgan, Principal Communications Officer sue.morgan@torfaen.gov.uk Issued by: 020 7251 3801 Finsbury PR Morgan Bone/ Mark Harris Notes for Editors The Capita Group Plc is a leading provider of integrated professional support service solutions. The Group's service capabilities encompass customer services, insurance services, human resource services, software services, systems and strategic support and property services delivered to both public sector and private organisations. With 16,000 people at over 160 UK sites, Capita is quoted on the London Stock Exchange and is a FTSE 100 company with estimated revenues for 2002 of £895 million. In November 2001 Capita was awarded the Management Today Most Admired Business Services Company Award. Gwent Consultancy was established in 1996 as an arms length local authority consultancy to serve the five constituent Unitary Authorities in Greater Gwent and the Welsh Office, as agent for the motorway and trunk road network in South East Wales. Gwent Consultancy has since substantially expanded its skill base and client portfolio and is now a major supplier of civil engineering, transportation and environmental consultancy advice to clients across South Wales and further afield. The Consultancy is unique in having the broadly based, highly developed technical skills and knowledge of a local authority, combined with management and commercial skills from the private sector. Gwent Consultancy is able to offer a full range of technical and engineering skills and knowledge essential for the successful implementation of projects of this nature. These encompass such services as: Project Management and PFI Highway & Structural Engineering Integrated Transport Planning Regeneration Environmental Services Geotechnical design Materials Testing Laboratory Construction Management and procurement Road Safety Engineering & Education Health & Safety Management Technical Training and Facilitation This information is provided by RNS The company news service from the London Stock Exchange

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