Contract Award

Carillion PLC
06 April 2006



6 April 2006

Carillion joint venture reaches contract award on the MoD's largest estates PPP
                       contract worth around £12 billion


Support services and construction company Carillion and its joint venture
partners have been awarded the £12 billion Project Allenby/Connaught PPP
contract by the Ministry of Defence.


Aspire Defence, the joint venture between Carillion (50 per cent), Kellogg Brown
and Root (KBR) (45 per cent) and HSBC (5 per cent) will deliver Project Allenby/
Connaught, which is the MoD's largest Estates Public Private Partnership (PPP)
contract to date. The project will transform the Army garrisons at Aldershot and
across the Salisbury Plain area and provide support services for these garrisons
for the next 35 years.


The joint venture partners will invest a total of £120 million of equity in this
project. The total nominal revenue for Aspire over the 35-year concession period
will be approximately £12 billion (£8 billion in real terms based on January
2004 prices). Carillion will invest £60 million of equity in the project and its
share of Aspire's revenue will be around £6 billion. Including Carillion's share
of the construction and support services work to be provided as part of this
project, the contract is expected to generate a total of approximately £9.5
billion of revenue for the Carillion Group.


The contract involves a 10-year construction programme at four garrisons with
comprehensive facilities management services for the 35-year concession period.


The £1.2 billion construction programme will be carried out by a 50:50 joint
venture between Carillion and KBR for garrisons at Aldershot and across
Salisbury Plain, at Tidworth, Bulford, Perham Down, Larkhill and Warminster.
Around 11,000 en-suite bedrooms will be provided, including approximately 7,000
new bedrooms in single soldier living accommodation blocks and over 4,000
bedrooms refurbished to the same modern standards. In addition, a comprehensive
range of new facilities, including new dining centres, theatres and community
centres will be built to provide modern high-street style living for Army
personnel.


A second 50:50 joint venture between Carillion and KBR will provide the
garrisons with a wide range of support services that are expected to generate
around £5.7 billion of revenue over the 35-year concession period. These
services include stores management, grounds maintenance, mess management,
catering, utilities, infrastructure and fleet management. In addition, the joint
venture will provide the garrisons with a 24/7 helpdesk facility that will
operate 365 days a year and act as a central co-ordination point for customer
support.


Commenting, Carillion's chief executive John McDonough said:  'The contract
award for Project Allenby/Connaught is an important milestone in the development
of PPP projects. It almost doubles the value of our order book and further
reinforces Carillion's leading UK position both in PPPs and as a major supplier
in the Defence sector, one of our key growth sectors. This project plays to our
strengths as a provider of integrated service solutions for large complex
projects, where we and our joint venture partners can apply our wide range of
skills and resources, including private finance, support services and
construction.


'At the heart of our approach lies a commitment to using innovative ways of
working to deliver high quality services while improving efficiency to maximise
value for money for the Ministry of Defence. Whether it's construction, planned
or reactive maintenance or facilities management, we are committed to working in
partnership with the Ministry of Defence and all our stakeholders to deliver a
first-class service that will transform living accommodation and facilities for
Army personnel in the South of England.'


The Under Secretary of State for Defence, Mr Touhig, said: 'Project Allenby /
Connaught is the largest estates PPP project the MoD has ever undertaken and
will see the significant redevelopment of Aldershot Garrison and garrisons in
the Salisbury Plain area, including the reconstruction of several new barracks.
In all, the project will provide 18,000 military and civilian staff with brand
new or refurbished living and working accommodation.


'The award of this contract is a major step forward and I look forward to a long
and fruitful partnership with Aspire Defence Ltd.'


For further information contact
John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426


Notes to Editors
Carillion is a leading provider of integrated solutions for buildings,
infrastructure and services in the UK, with well-established international
businesses. As a FTSE 250 company with annual revenue in the region of £4
billion and over 40,000 employees, the Group delivers high quality, cost
effective and sustainable solutions using its wide range of skills and
resources. Its key target markets are defence, health, education and transport
(rail and road infrastructure) and building, facilities management and support
services for public and private sector customers.


Carillion is also a leading provider of Public Private Partnership projects and
has a portfolio of 30 financially closed projects in which it has invested, or
has commitments to invest, a total of approximately £171 million of equity. In
addition, Carillion is the preferred bidder for a further four PPP projects in
which it expects to invest some £24 million of equity.








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