12 June 2014
Carillion consortium appointed preferred bidder for Aberdeen Western Peripheral Route estimated to be in the region of £745 million
The Connect Roads consortium comprising Carillion, Balfour Beatty and Galliford Try has been appointed as the preferred bidder to finance, design build and operate the Aberdeen Western Peripheral Route/ Balmedie to Tipperty Project (AWPR/B-T).
This project, which is estimated to be in the region of £745 million, is being delivered in partnership by Transport Scotland, Aberdeen City Council and Aberdeenshire Council and is being procured under the Scottish Government's Non-Profit Distribution (NPD) model.
The AWPR project, includes the design and construction of 46km of new dual carriageway between Stonehaven and Charleston, in the south, and Blackdog in the north and a further 12km of upgraded existing dual carriageway between Blackdog and Tipperty. The contract will also include the construction of 40 kilometres of new side roads, 30 kilometres of access tracks and 72 new bridges, including two significant focal point bridges over the rivers Dee and Don.
Carillion expects to invest up to £20 million 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 2018, the route will be managed and maintained by Connect Roads for 30 years.
Carillion Chief Executive, Richard Howson said: "We are delighted that we and our consortium partners have been selected as the preferred bidder for this project, which is the largest NPD project of its kind in Scotland to date. The project is firmly in line with our selective approach to construction, namely of focusing on high quality projects, notably those involving integrated solutions such as NPD projects, and we look forward to working closely with Transport Scotland, Aberdeen City Council and Aberdeenshire Council to deliver major improvements to the transport network around Aberdeen."
Notes to Editors
The Scottish Government's Non-Profit Distributing (or NPD for short) model is a contract for public infrastructure projects which seeks to cap the returns made by the private sector when delivering public assets. This contract model is being used for projects in a £2.5 billion programme of investment by the Scottish Government (the NPD pipeline).
Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2013 of some £4.1 billion, employs around 40,000 people and operates across the UK, in the Middle East and Canada.
The Group has four business segments.
Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy services.
Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.
Middle East construction services - this includes building and civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.
This and other Carillion news releases can be found at www.carillionplc.com
For more information
John Denning, Director Group Corporate Affairs, Carillion plc + 44 (0) 1902 316426
Finsbury
James Murgatroyd or Gordon Simpson +44 (0) 207 2513801
