Downer awarded $860m Homes NSW contract
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The news: Downer EDI has been awarded a new contract worth $860 million by Homes NSW to deliver responsive and programmed maintenance services across public housing.
The numbers: The contract will commence on 1 July and run for a maximum term of 10 years. The initial term is five years, with provisions for two extensions of two years each, and one extension for one year.
The scope of the contract covers responsive maintenance along with capital upgrade, vacant restoration, home modifications and lawns, grounds and cleaning services and works to approximately 24,000 public housing dwellings.
Downer shares were down 2.9% to $4.63 by 2:45pm AEST.
The context: The contract covers Inner City Sydney, Southern Tablelands, South Coast, Macarthur and Southern Highlands, and Illawarra.
Downer's latest government contract comes after it was awarded a $320 million road maintenance contract by Victoria’s Department of Transport and Planning in April and a $600 million contract by Unitywater to deliver water, sewerage and recycled water services in south east Queensland last month.
Downer, a leading provider of integrated services in Australia and New Zealand, was also awarded a $100 million contract by NBN to expand the government-owned telco's broadband network.
What they said: Downer CEO Peter Tompkins said: "Downer has a long history of providing property and facilities management services for government departments, agencies and authorities at the federal, state and municipal level".
"We have successfully partnered with the NSW Land and Housing Corporation, now Homes NSW, for more than 20 years, and are proud to renew our relationship and continue to deliver these vital services for the people of NSW, while also providing sustainable employment opportunities and support social enterprises," he said.
The source: ASX announcement
