Carillion JV agrees further contracts worth up to £2.8bn

24th Jul 2014 08:57

Carillion's joint venture with Amey has signed agreements for three further contracts that have a potential value of up to £2.8bn. The contracts form the final part of the Defence Infrastructure Organisation's (DIO) Next Generation Estate Contracts (NGEC) programme to maintain and upgrade defence infrastructure. The five NGECs won by the Carillion and Amey joint ventures have a total potential value of £4.5bn.The first of the agreements, worth around £435m over the initial five-year period, is the Regional Prime Central contract, which replaces both the central and east regional prime contracts previous agreed. The other deals, namely the South East and South West Regional Prime contracts, are estimated by the Ministry of Defence to be worth approximately £258m and £265m, respectively. Under the agreements, the joint venture will provide hard facilities and asset management services to 100 key defence sites. Carillion's Chief Executive, Richard Howson, said: "We are delighted that our joint ventures have signed these three major contracts. This follows our recent success in winning the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract and means that our joint ventures have won all five of the Next Generation Estate contracts for which we bid. "We look forward to building on the strong relationship we have developed with DIO and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the Defence estate across the whole of the UK."Shares climbed 0.09% higher to 336.60p by 08:53.NR