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Carillion wins £450m energy services contracts

9 Nov 11 Carillion has won a pair of support services contracts in the energy sector that are together worth approximately £450m.

Carillion has signed a five-year framework contract to provide gas and multi-utility services for Fulcrum, potentially worth £70 million. 

Secondly, in joint venture with Eltel Networks, Carillion has been named preferred bidder by National Grid to provide refurbishment and upgrade services for its 400kV overhead transmission network in England and Wales, potentially worth up to £375m over five years. 

Under the framework contract with Fulcrum, which starts immediately, Carillion will deliver gas and multi-utility connections across the north of England, north and central Wales, West Midlands, East Midlands and East Anglia. 

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Carillion-Eltel Networks, a 50:50 partnership, will work in alliance with National Grid under a framework agreement to deliver overhead line transmission services. This work forms part of National Grid's £22bn investment programme.  The main contract starts in April 2012, with the volume of work allocated to the JV increasing annually, subject to performance.  This deal follows the award last week of a £500m power line construction contract by National Grid to MSVE Transmission, a joint venture of Morgan Sindall and Vinci Energies.

Carillion chief executive John McDonough said: "We are delighted to have been selected to deliver these key services for Fulcrum and National Grid that further underpin our strong order book and pipeline. The contract for Fulcrum enhances Carillion's position as one of the largest providers of gas connection services in the UK and our selection as the preferred bidder to deliver overhead line services for the National Grid underlines the strength of Carillion's offering as a leader in this market sector."

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