Carillion's JV wins £1.1bn MoD contract

The Aspire Defence Capital Works joint venture with KBR was awarded a construction and facilities management support services contract across the Salisbury Plain Training Area and at Aldershot.

The joint venture will provide support to the army basing programme, a series of unit moves within the UK and the return and resettlement of troops from Germany by 2019.

Under the deal, the companies will design and construct 130 new buildings, with extensions to existing buildings on construction works worth £680m. Carillion's share will be 50% and work is expected to start immediately until 2020.

Aspire Defence Services will also provide facilities management and maintenance for the military across the garrisons under the project Allenby/Connaught (PAC), a 35-year contract let by the Ministry of Defence to the joint venture in 2006, starting in May 2017 until 2041.

The contract will add a further £430m of support services revenue over the remaining 25-year contract, which Carillion's share will be about £215m.

Carillion chief executive, Richard Howson, said: ''I believe this reflects in the successful delivery of new living and working accommodation along with associated assets for project Allenby/Connaught, together with the high-quality, value for money services that will continue to be provided for this project.

“We look forward to continuing our strong relationship with Aspire Defence Limited and to working together on behalf of the Ministry of Defence to create the accommodation and deliver the facilities manage services needed for the successful delivery of its army basing programme."

Shares in Carillion were up 1.51% to 254.90p at 1348 GMT.