Engineering and infrastructure company Downer EDI Ltd
(ASX:DOW) has signed a five-year maintenance agreement with VicRoads valued at $125 million.
The contract is to perform road maintenance and deliver routine, periodic and minor improvements to the road network in Victoria’s North East.
Downer says the main activities of the Alliance team will include emergency response, snow-clearing, road surfacing works, minor rehabilitation and upgrades and roadside management along more than 3000 kilometres of roads throughout the region.
The company says Downer will deploy an Alliance team combining more than 60 people from within Downer and VicRoads with the aim of sharing best practices from both the private and Government sectors thereby greatly increasing efficiency and service levels for the road user.
Last week Downer announced the need for a further $190 million for the Waratah train project and would incur $70 million in impairment charges in the second half of the 2010 financial year.
Downer posted a profit of $189.38 million for the 12 months to June 30, 2009.
