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Carillion's joint venture wins £1.1bn defense contract

Staff Writer | November 2, 2016
Carillion's joint venture has won £1.1bn construction and support services contracts from the Ministry of Defence.
Construction   A further £430m of support services revenue
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.