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Carillion wins initial £50m Heathrow contracts under new 10-year framework with BAA

Carillion (LON:CLLN) has won a 10-year framework contract with UK airport operator BAA, with initial contracts totalling £50 million, to provide facilities management services at Heathrow Airport. The first two contracts awarded under the framework see Carillion provide bundled services for Terminal 1 and Terminal 3.  

"We have a strong long-term relationship with BAA and we are delighted that this is being extended through these important new contracts”, Carillion Chief Executive John McDonough commented.

Under the framework, Carillion will provide both hard and soft facilities management services - including mechanical, electrical, and building fabric maintenance, together with cleaning, compliance and pest control.

The Terminal 1 contract is worth £23 million over an initial three-year period, with an option to extend the term for a further seven years. Similarly, at Terminal 3, BAA has awarded an initial three-year contract worth £27 million, which can be extended for a further 7 years.

BAA is controlled by Madrid-headquartered conglomerate Grupo Ferrovial. In the UK, the airport operator currently owns and runs London Heathrow, London Stansted, Aberdeen Airport, Edinburgh Airport, Glasgow International and Southampton Airport.