Downer EDI (ASX:DOW) receives NBN contracts

Company News

by Adrian Tan

NBN Co (nbn) has awarded Downer EDI (ASX:DOW) two contracts with an estimated value of over $220 million over two-and-a-half years. The contracts will commence in July 2021.

Under the "N2P Evolution" contract, Downer will provide design and construction services to support the extension of nbn's fibre network. The contract is worth around $160 million over the initial term till December 2023.

Under the "Fixed Wireless Services", Downer will deliver solutions to enhance nbn's wireless coverage and capacity. The initial term of this contract, worth around $60 million, is for two years.

Downer CEO Grant Fenn comments: “With the major network build programs now complete, Downer is pleased to assist in the evolution of the nbn network. These two contracts consolidate Downer’s position as a key long term nbn approved delivery partner, and we look forward to continuing our partnership and optimising the nbn network.”

Shares in Downer EDI (ASX:DOW) closed 1.3 per cent higher at $5.50 yesterday.

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