Carillion's joint venture (JV) with American engineering firm KBR has secured a £1.1 billion contract to support an Army Basing Programme in southern England.

The Aspire Defence Capital Works JV will carry out construction and facilities management support services for the programme, which is being delivered across Salisbury Plain Training Area and Aldershot.

The scheme will see a series of unit moves and re-roles within the UK, along with the return and resettlement of troops from Germany by 2019.

The two companies will design and build 130 new buildings, along with extensions and alterations to existing buildings and associated infrastructure. Overall, the construction works have an estimated value of £680 million, of which Carillion will share some £340 million. Work is expected to begin immediately and completion is scheduled for 2020.


In addition, a separate JV (Aspire Defence Services) will provide facilities management and maintenance services for the new buildings as well as the garrisons under the 35-year Project Allenby/Connaught contract awarded by the Ministry of Defence in 2006.

A further £430m of support services revenue will be generated by this contract variation, of which Carillion will gain £215m. These services will start as soon as construction of the first asset is completed, which is expected to be in May 2017.

Carillion Chief Executive, Richard Howson, said: "We are delighted that Aspire Defence Limited and its sub-contractors Aspire Defence Capital Works and Aspire Defence Services have been selected by the Ministry of Defence to deliver this major element of the Army Basing Programme.

"I believe this reflects in the successful delivery of new living and working accommodation along with associated assets for Project Allenby/Connaught, together with the high-quality, value for money services that will continue to be provided for this project.

"We look forward to continuing our strong relationship with Aspire Defence Limited and to working together on behalf of the Ministry of Defence to create the accommodation and deliver the facilities manage services needed for the successful delivery of its Army Basing programme."

(LM)