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Sunderland picks Carillion for £800m regeneration partnership

29 Nov 13 Sunderland City Council has chosen Carillion for a strategic partnership to deliver its urban regeneration programme in a deal that is potentially worth up to £800m to the contractor.

Sunderland's coat of arms
Sunderland's coat of arms

The contract will initially focus on the redevelopment of key sites across the city. Carillion said that the deal was worth at least £100m over the first eight years and potentially up to £800m over 20 years.       

The Carillion/Sunderland City Council joint venture will be supported by Igloo Regeneration, which will provide development and asset management services to the JV.

The council’s decision came in spite of lobbying by the GMB union for it not to give the contract to Carillion because of its prominent role in the construction industry’s blacklisting scandal. (See previous report here.)

Sunderland City Council leader Paul Watson said: "The chance to take part in an ambitious, long-term initiative attracted bids from a number of leading UK companies.  We were delighted at the high standard of the shortlisted bids and it was a difficult task to choose the preferred bidder, but the commitment, track record and approach of our chosen partner gave it the winning edge.

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"This decision marks an important milestone in the joint venture agreement, which will breathe new life into under-used publicly owned land in prime sites for development.  The programme will invigorate key areas of the city and offer new opportunities for employment, housing, shopping and leisure."

Carillion chief executive Richard Howson said: "We are delighted to have been selected by Sunderland City Council as its strategic partner for this innovative contract. I believe our success reflects Carillion's focus on creating offerings tailored to the specific needs of our customers and our ability to provide a fully integrated solution that delivers the immediate and long-term services required by the council.

"We look forward to working with Sunderland City Council and to engaging with local communities and businesses to deliver the council's vision for the city, which will bring major benefits to the people of Sunderland and act as a catalyst for further inward investment."

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