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Highlights
- Auckland Transport has awarded Downer with a road maintenance contract worth AU$800 million.
- The initial term of the contract is five years, and it can be extended for a further five years.
- Downer maintains 28,000 kms of roads across Australia and 25,000 kms in New Zealand.
Integrated services provider, Downer EDI Limited (ASX:DOW), announced today (22 June 2022) that Auckland Transport has awarded two major road maintenance contracts to the company. The contract value is approximately AU$800 million with a maximum term of 10 years.
This is the third contract secured by Downer this month.
Key highlights of the contract
Downer informed the market that the initial term of the road maintenance contract is five years, and it can be extended for additional five years. Reportedly, the contract period will start from 1 July 2022.
The company said it would act as ‘stewards’ of Auckland Transport’s North Rural and Central network. Under the contract, the company would deliver renewal, maintenance, and emergency repair services.
As per the release, the company has strong working relations with Auckland transport. It comprises the delivery of the award-winning Downtown Program.
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Management commentary
Grant Fenn, chief executive officer, Downer, said that the company is a leader in road maintenance services in New Zealand and Australia. The company maintains around 28,000 km of Australian roads and 25,000 km of roads in New Zealand.
Image source: © Maigi | Megapixl.com
Fenn added that Downer has been offering road maintenance services in Auckland, New Zealand, for over 30 years now. The company will deliver reliable road networks in this contract to ensure safe and efficient journeys.
Steve Killeen, CEO, Downer New Zealand, said that the company is committed to creating a positive impact on the community by offering high-performing, reliable and sustainable solutions.
Downer's share performance
The shares of Downer were spotted trading 2.012% up at AU$5.070 per share at 2:00 PM AEST. The stock dipped 13.63% in last six months and has lost overall 10% in last one year.
About Downer
Downer is an NZX and ASX-listed commercial and professional services company, engaged in designing, building and sustaining facilities, assets and infrastructure. The company offers integrated services across New Zealand and Australia.
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