Carillion secures energy contracts worth £450m
SUPPORT services group Carillion has secured two large contracts in the energy sector worth a combined £450m.
The Wolverhampton-based group has signed a five-year framework contract to provide gas and multi-utility services for Fulcrum, potentially worth £70m, while in its joint venture with Eltel Networks it has been selected as the preferred bidder by National Grid to provide refurbishment and upgrade services for its 400kV overhead transmission network in England and Wales. The latter is potentially worth up to £375m over five years.
Under the framework contract with Fulcrum, which will commence immediately, Carillion will deliver gas and multi-utility connections across the North of England, North & Central Wales, West Midlands, East Midlands and East Anglia.
“This success further enhances Carillion’s position as one of the largest providers of gas connection services in the UK,” said the group in a statement.
Carillion-Eltel Networks, a 50:50 partnership, will work in alliance with National Grid under a framework agreement to deliver overhead line transmission services. The wok forms part of Solihull-based National Grid’s £22bn investment programme.
The main contract will commence in April 2012, with the volume of work allocated to the JV increasing annually, subject to performance.
John McDonough, Carillion chief executive, said: “We are delighted to have been selected to deliver these key services for Fulcrum and National Grid that further underpin our strong order book and pipeline.
“The contract for Fulcrum enhances Carillion’s position as one of the largest providers of gas connection services in the UK and our selection as the preferred bidder to deliver overhead line services for the National Grid underlines the strength of Carillion’s offering as a leader in this market sector. We look forward to working with Fulcrum and in alliance with National Grid to deliver these important programmes.”
