Carillion has won two contracts for work on Network Rail’s Midland Mainline improvement programme, which it says will be worth nearly £200m for the group.
The troubled infrastructure firm has signed a contract with Network Rail to upgrade the existing track and infrastructure on the route from London to Corby. It said the contract is expected to generate revenues of £62m over the next two and a half years.
The Midland Mainline. Source: Network Rail
In addition Carillion Powerlines, a 50:50 joint venture with Powerlines Group, has signed a contract with Network Rail in respect of the Midland Mainline Electrification programme.
Under the contract, Carillion Powerlines will undertake work to complete the electrification of the route from London to Corby, i.e. from Bedford to Kettering and Corby. It said the contract is expected to generate revenue for the joint venture of around £260m over the next three years, with work commencing shortly.
Carillion’s interim chief executive, Keith Cochrane, said: ‘We are pleased to have agreed these awards with Network Rail, demonstrating that we continue to have the support of key customers and win important new contracts.
‘The Group faces significant challenges, but we remain focused on executing our disposals programme, taking cost out and strengthening our balance sheet.’
The Midland Mainline runs from London St Pancras to Sheffield, via Luton, Bedford, Corby, Leicester, East Midlands Parkway, Derby, Nottingham and Chesterfield.
Network Rail’s current improvement programme on the line includes electrification from Bedford to Kettering and Corby (the section between London St Pancras to Bedford was electrified in the 1980s).
In July, transport secretary Chris Grayling controversially cancelled the planned electrification Kettering to Nottingham and Sheffield, arguing that bi-mode trains made it unnecessary.
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