Services group, Downer EDI has won a $400 million-plus, 13 year set of contracts to maintain roads for the South Australian government.
In an announcement to the ASX Downer said the agreements are with the South Australian Government Department of Planning, Transport, and Infrastructure and valued at an estimated $420 million over a maximum term of 13 years.
The contract also has provisions for additional minor capital works and starts on November 2 this year for an initial seven-year term with two extension options of three years plus three years.
Downer CEO, Grant Fenn said in Tuesday’s statement the new contracts will see the company expanding the services it provides to Government and maintaining 8,500 kilometres of roads in South Australia’s Metropolitan Zone and Regional North Zone.
“Downer has been maintaining South Australian roads since 2003,” Mr. Fenn said. “Currently, Downer is providing maintenance and emergency road services to DPTI, but under these new contracts, Downer will also deliver a range of other services including maintenance of intelligent transport systems, management of third party works, and minor capital improvements.
“Overall, Downer will deliver reliable road networks to ensure efficient and safe journeys and also provide opportunities for local service providers and suppliers,” he added.
Downer Group employs over 3,500 people in South Australia providing customers with engineering, maintenance, asset management, operations, and hospitality services in both metropolitan and regional areas.
Downer shares rose 0.8% yesterday to end at $4.475.