Carillion and its joint venture partners have confirmed the contract award of the �12 billion Project Allenby/Connaught PPP contract by the Ministry of Defence.
Aspire Defence - the joint venture between Carillion, Kellogg Brown and Root and HSBC - will deliver Project Allenby/ Connaught, which is the MoD's largest Estates Public Private Partnership contract to date.
The project will transform the army garrisons at Aldershot and across the Salisbury Plain area and provide support services for the barracks for the next 35 years.
The joint venture partners will invest a total of �120 million of equity in the project and 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.
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.
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.�
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