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Carillion JV extends Openreach agreement in potential £1.5bn deal
Posted by Billy Wood on 02 Feb 2017
Carillion has announced that its joint venture with telent has signed a multi-year extension to its framework agreement with Openreach which could net the firm up to £1.5bn.
The deal for Carillion telent, its 60:40 JV, will see its provide maintenance, extension and repair services for BT’s Openreach network across the UK for a further three years, with the potential to extend the agreement by a further two years subject to performance.
With the initial three-year period now running to 2021, the JV will continue to provide services, including the delivery of asset assurance works, to the North East, Midlands and Wales, South West, London and the North Home Counties.
Carillion said it expects the framework to generate £900m of revenue over three years for both firms and potentially up to £1.5bn over five years.
Carillion Chief Executive, Richard Howson commented: "We are delighted to have agreed this extension to our framework agreement with Openreach that reflects the strong partnership we have built with Openreach over the last eight years as its main delivery partner for the management, maintenance and upgrading of its broadband network.
"We look forward to continuing this relationship and to supporting Openreach in delivering its objectives for further enhancing the services it provides for its customers."
Today’s agreement builds upon the eight-year partnership that Carillion telent and has developed with Openreach, where it has been the main delivery partner for the management of its broadband network.