Downer wins $420m roads contract

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Downer EDI have won a $420 million, 13-year set of contracts to maintain roads for the South Australian government. 

Downer announced the contracts to the ASX, stating the agreements were made with the South Australian Government Department of Planning, Transport, and Infrastructure. 

Construction is commencing in November this year for an initial seven-year term, with two extension options of three years each. Provisions are also included in the contract for additional minor capital works.

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Downer CEO, Grant Fenn said in Tuesday’s statement the new contracts will see the company expanding the services it provides to Government and maintaining 8,500 kilometres of roads in South Australia’s Metropolitan Zone and Regional North Zone.

“Downer has been maintaining South Australian roads since 2003,” Mr. Fenn said. “Currently, Downer is providing maintenance and emergency road services to DPTI, but under these new contracts, Downer will also deliver a range of other services including maintenance of intelligent transport systems, management of third party works, and minor capital improvements.

“Overall, Downer will deliver reliable road networks to ensure efficient and safe journeys and also provide opportunities for local service providers and suppliers,” he added.

Over 3,500 people are employed by Downer Group in South Australia. The organisation provides customers with a range of crucial industry services including engineering, maintenance, operations, asset management and hospitality services in both regional and metropolitan areas. 

Downer shares ended the day at $4.475, rising 0.8%. 

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