Carillion wins £550m roads project

INFRASTRUCTURE and support services group Carillion has secured financial close on a £550m Scottish roads maintenance project.

Carillion, together with Balfour Beatty and Galliford Try – the joint consortium known as Connect Roads, was appointed as the preferred bidder to finance, design build and operate the Aberdeen Western Peripheral Route/Balmedie to Tipperty Project in June.

The Wolverhampton company said in an update today that Connect Roads, now known as Aberdeen Roads Ltd, had now achieved financial close on this project.

The project, which is estimated to be worth in the region of £550m, is being delivered in partnership with Transport Scotland, Aberdeen City Council and Aberdeenshire Council and is being procured under the Scottish Government’s Non-Profit Distribution (NPD) model.

Carillion expects to invest up to £20m of equity (one third share) in the project and to have a one third share of the construction revenue.  Following the completion of construction in winter 2017, the route will be managed and maintained by Aberdeen Roads for 30 years.

Richard Howson, chief executive, Carillion, said: “We are delighted that our consortium has achieved financial close on the Aberdeen Western Peripheral Route/Balmedie to Tipperty project, which is the largest of its kind in Scotland to date.  

“The project is firmly in line with Carillion’s selective approach to construction, namely of focusing on large, high quality projects, notably those involving integrated solutions. We look forward to working closely with Transport Scotland, Aberdeen City Council and Aberdeenshire Council to deliver this major improvement to the transport network around Aberdeen.”