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Downer EDI (ASX:DOW) secures $540m contract with Hamilton City Council

ASX News, Industrial
ASX:DOW      MCAP $3.881B
03 July 2023 11:44 (AEDT)

Road works in New Zealand. Source: Downer

Downer EDI (DOW) has been awarded a $540 million road maintenance contract by New Zealand’s Hamilton City Council.

The Collaborative Corridor Agreement is initially for a five-year term plus provisions for extensions of three and two years with a maximum contract length of 10 years.

Downer will partner with the Hamilton Council to provide a range of services including asset management, footpaths, bridges, lighting and surfacing, and renewals for road corridors across the region.

The company first started working with the council in 2013, with the current deal replacing the Hamilton Infrastructure Alliance, expanding the scope of services delivered by Downer.

Downer CEO Peter Tompkins said the company is “looking forward” to delivering its “shared sustainability goals”.

“Downer will deliver reliable road networks to ensure efficient and safe journeys and also provide opportunities for local service providers and suppliers across the region,” he said.

DOW lifted 2.07 per cent to $4.20 at 11:43 am AEST.

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