Downer (ASX:DOW) has been awarded a road maintenance contract, valued up to $540 million over a 10-year term, by the Hamilton City Council.
The company reports the contract is for an initial 5-year term, plus provisions for extensions of 3 years and 2 years.
Downer will be partnering with Hamilton City Council in the Collaborative Corridor Agreement to deliver a broad scope of works, including asset management, surfacing and renewals for road corridors, footpaths, bridges, culverts, lighting, and on-road cycle lanes across Hamilton in the Waikato region of New Zealand’s North Island.
“This contract strengthens our position as the market leader in road services”
The agreement replaces the Hamilton infrastructure alliance and expands the scope of services delivered by Downer.
Commenting on the award, Downer Chief Executive Officer (CEO) Peter Tompkins says: “This contract strengthens our position as the market leader in road services, maintaining more than 50,000 kilometres of roads across Australia and New Zealand.
Downer will deliver reliable road networks to ensure efficient and safe journeys and also provide opportunities for local service providers and suppliers across the region.”
Downer is the ‘leading’ provider of integrated services in Australia and New Zealand. The company designs, builds, and sustains assets, infrastructure, and facilities.