Billions in HS2 contracts awarded to developers
MIDLAND-BASED Carillion has been awarded more than a £1 billion in contracts for the development of tunnels along the proposed high speed rail route between London and Birmingham.
The Wolverhampton-based construction giant, which built the Library of Birmingham, will form a joint venture with Eiffage and Kier (known as CEK), for two projects worth a combined £1.4 billion.
CEK will build from North Portal Chiltern Tunnels to Brackley, and Brackley to Long Itchington Wood Green Tunnel South.
Main construction work is scheduled to start in 2018/19 following design work and the line is due for completion in 2026.
Keith Cochrane, who stepped in as interim chief executive of Carillion following the resignation last week of Richard Howson, said: “We are delighted our joint venture has been selected to deliver two of the three central contracts for HS2 phase one.
“We look forward to working in close collaboration with HS2 to deliver this iconic project.”
Mr Howson resigned following a profit warning to the stock exchange which wiped almost £600 million off the value of Carillion’s share price.
Partners Eiffage and Kier reassured the Government that they could step in to deliver the HS2 contracts if required.
Meanwhile, the civil engineering firm which led the extension of the Midland Metro tram line in Birmingham city centre has won contracts worth £2.47 billion on the highspeed rail project.
Balfour Beatty, with its joint venture partner Vinci, has been awarded briefs by the Department for Transport to build two sections of the line which will eventually run from central London to Curzon Street in Birmingham.
The joint venture will build between the Long Itchington Wood Green tunnel to the Delta Junction/ Birmingham Spur and then from Delta Junction to where the line ties up with the existing West Coast Main Line near Lichfield. HS2 said that it “carried out additional due diligence” and the companies have “confirmed that they underwrite the performance of each other in delivering the contract”.
It added: “HS2, of course, will continue to monitor the situation.”
The contracts are estimated support 16,000 jobs.
Greater Birmingham Chambers of to Commerce chief executive Paul Faulkner said: “It’s great to see the main works civil contracts being awarded for Phase One of the project.
“Not only will construction of the project start on time, it will also create a raft of new jobs and supply chain opportunities for our local firms. We also welcome the news that the final routes for the Leeds and Manchester branches have been announced.
“It means that Phase Two of the project will embed Birmingham at the heart of a modern and innovative transport network which will help rebalance the national economy and bring greater prosperity to the region as a whole.
“The news will only add to the air of confidence that we are seeing in the region at the moment.”
It will create a raft of new jobs and supply chain opportunities for our local firms Birmingham Chamber