Downer secures up to $540 million New Zealand contract

The news: Engineering and services contractor Downer EDI has secured a new contract with New Zealand energy distribution company Powerco worth up to NZD600 million ($540 million).

The numbers: The initial five-year contract, which starts on 1 July, is valued at NZD250 million, Downer said. If all extension options for a further seven years are exercised, the total value will rise to NZD600 million.

The context: The new contract replaces Downer’s current field services work with Powerco. Under the contract, the company will provide maintenance, minor capital works and fault repair services across two regions of Powerco’s electricity distribution network on New Zealand’s North Island.