Carillion/Amey JV wins £2.8bn MoD Contracts from UK Government
A Carillion and Amey joint venture has won three contracts from the British government worth up to £2.8bn ($4.77bn) to maintain and upgrade defence infrastructure.
The three contracts form the final part of the Next Generation Estate Contracts programme, and follows the joint venture’s awarding in May of the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract. The five contracts combined have a total potential value of £4.5bn.
Facilities management/construction services giant Carillion and support service provider Amey will provide support services including electrical engineering maintenance and utility efficiency services at more than 150 sites including RAF Cranwell, RAF Valley and MoD Stafford.
The MoD estimates the latest regional prime central contract to be worth £435 million over the initial five years, with a possible extension for a further five years.
The joint venture has also been awarded the South East and South West Regional Prime contracts worth an estimated £258m and £265m respectively over the five-year initial contract period.
The South East contract will provide hard facilities and asset management services at 60 key sites, including Sandhurst, Horse Guards, HQ Land Andover and RAF Northolt.
The South West contract will provide hard facilities and asset management services at 40 key sites, including RNAS Yeovilton, DE&S Abbey Wood, RAF Lyneham and Britannia Naval College.
Carillion chief executive Richard Howson said: Carillion Chief Executive, Richard Howson, said: “We are delighted that our joint ventures have signed these three major contracts.
"We look forward to building on the strong relationship we have developed with Defence Infrastructure Organisation and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the Defence estate across the whole of the UK.
"DIO set industry the challenge of providing added value to the military estate and by awarding us these five contracts providing UK wide coverage the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems."
Amey Chief Executive Mel Ewell said: “Securing the Regional Prime contracts across the whole of UK is great news for the business and testament to the strength of the partnership with Carillion.
“This recent win allows us to add value by expanding the service, as well as sharing best practice and driving efficient ways of working across the defence estate.”
France to invest €1.8bn in Egypt’s infrastructure
France will invest a total of €1.8bn into Egypt’s infrastructure focusing specifically on upgrading the Cairo Metro, building a railway to Sudan, and developing water and energy schemes. Officials have called the investment a “major boost to bilateral cooperation”.
The Cairo Metro
Included in the financing is a concessional government loan of around €800mn to upgrade Line 1 of the Cairo Metro, introduced in the 1980s. The financing will pay for 55 trainsets for the line and is provided by the French engineering company, Alstom.
Line 6 is also due to be upgraded using further state-guaranteed loans worth up to €2bn. Bruno Le Maire said that this would be negotiated over the next six months. France and Egypt have worked in close cooperation ever since Abdel Fattah al-Sisi became president in 2014, despite differences over human rights and strong criticism of Egypt by rights activists and some foreign states.
Nine more projects over the next half a decade
A further €1bn from France’s development agency, Agence Française de Développement (AFD), aims to cover a range of other projects over the next half a decade.
These projects include a railway line between Aswan, southern Egypt, and Wadi Halfa in Sudan, as well as several projects in the renewable energy and water purification industries. Bruno Le Maire, France’s Finance Minister, said Egypt was a “strategic partner and commercial dealings with it would be developed. France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans,” he said.
According to Le Maire, the AFD will also €150mn to support the construction of a universal health insurance programme. French contractors such as Vinci and Bouygues have a long history of working on the Egyptian capital’s underground system.
Talking about the relationship between France And Egypt, Le Maire concluded: “France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans”.