Carillion joint ventures win Canadian and Irish contracts

Carillion celebrated two contract wins on Tuesday, with two of the FTSE 250 firm’s joint ventures in Canada and Ireland being selected for major public projects.

The first project in Canada involves EUS-Rokstad, a joint venture between Emera Utility Services and Rokstad Power, being selected by NSP Maritime Link as the transmission line contractor for its Maritime Link Project.

Carillion acquired a 60% interest in Rokstad Power in 2014.

It said the Maritime Link project will transmit energy from Newfoundland to Nova Scotia and will connect Newfoundland to the North American grid for the first time in history, and the joint venture will complete the High Voltage Direct Current transmission line link.

Carillion said the contract will involve delivering approximately 190 km of HVdc transmission line across both provinces, including the construction of tower foundations and anchors, tower assembly and erection and the stringing of conductors.

The contract is scheduled for completion by April 2017.

"We are delighted to have been selected to deliver this important project, which reflects the experience, skills and strength of Rokstad,” said Carillion chief executive Richard Howson.

“We look forward to working closely with Emera Utility Services and NSP Maritime Link to deliver this key transmission link into the North American grid."

Carillion said the second contract involves its joint venture Inspiredspaces Bundle 5 Ireland, which is a 50-50 partnership between itself and Dutch Infrastructure Fund, achieving financial close on the Irish Schools Bundle 5 Public Private Partnership project.

The FTSE 250 firm said the project has been procured by the Department of Education and Skills, with Ireland's National Treasury Management Agency acting as agent on its behalf.

Carillion said the joint venture will be responsible for financing, building, operating and maintaining five schools and an institute of further education that comprise Bundle Five of its schools Public Private Partnership programme, located in counties Meath, Carlow, Wicklow and Wexford.

The joint venture will invest £9m of equity in the project, of which Carillion's share will be £4.5m.

Carillion will also carry out the construction and deliver support services over the 27-year concession period and these activities together with its equity investment are expected to generate around £190m of revenue for Carillion.

"We are delighted to have achieved financial close on this important schools programme, which I believe reflects our experience and expertise in this sector of the PPP market,” Richard Howson commented.

“We look forward to working with the National Treasury Management Agency, the Department of Education and Skills and the individual school authorities to deliver a state-of-the-art facilities that provide excellent learning environments for students and staff."