Maintenance and construction group, Carillion (LSE: CLLN) has been awarded a £157 million PPP (Public Private Partnership) contract. The Carillion Health joint venture will design, build, finance and maintain Phase 1b of Toronto's Centre for Addiction and Mental Health (CAMH).
"We are delighted to have achieved financial close on this major project, which further reinforces our leading position in the PPP market in Canada”, Carillion Chief Executive, John McDonough said “We look forward to working with the Centre for Addiction and Mental Health to provide Toronto with a new state-of-the-art healthcare facility."
Phase 1b of the redevelopment includes the demolition of the existing administration building and the construction of three, new state-of-the-art buildings. Demolition work will begin in early 2010 and completion of the new buildings is scheduled for 2012. Carillion will also maintenance and life-cycle repair services over a 30-year concession period.
In addition to arranging debt finance to meet the costs of construction, Carillion will also invest £7 million of equity in the project.