Soldiers & Civilians to Benefit from Military Infrastructure Investment

An announcement today by Defence Secretary Michael Fallon has confirmed that Aspire Defence will play a vital role in setting the foundations for the British Army's future, through provision of new and improved accommodation for soldiers based in the South and troops resettling under the Army Basing Programme (ABP).

Additional investment of over £1.1 Billion was announced before the House of Commons Defence Committee in a variation to the 35-year Project Allenby/Connaught (PAC) contract, let by the MOD to Aspire Defence in 2006. ABP, which is jointly managed by the Defence Infrastructure Organisation (DIO) and the Army, involves a series of unit moves and re-roles within the UK, and the return and resettlement of troops from Germany by 2019.

"Preparing a first-rate home for soldiers is key to enhancing their professional and personal lives in return for the unique sacrifices they make for our country," said Allan Thomson, Chief Executive of Aspire Defence Limited. "We're delighted to be embarking on this next phase of development, enabling us to sustain our successful record of the past decade delivering high-quality accommodation, garrison buildings and facilities management services to the British Army."

Under PAC, around 550 new and refurbished buildings were delivered by Aspire Defence on time and to budget in an eight-year programme, from accommodation blocks and armouries to office and dining spaces, as well as leisure centres for community use.

Over the next four years under the ABP contract variation, new and enhanced garrison facilities will be completed at Bulford, Tidworth, Perham Down, Larkhill and Aldershot by Aspire Defence Capital Works (ADCW). By 2020, 130 new buildings and over 2,600 additional bed spaces for single soldiers will be created. Over the remaining 25 years of the PAC contract to 2041, hard and soft facilities management services will be provided by Aspire Defence Services (ADS). Both ADCW and ADS are 50/50 joint ventures between KBR and Carillion.

At peak construction under ABP, ADCW will see an estimated daily workforce of over 1,000 on site, while 200 long-term jobs will be created across diverse functions in ADS, from engineers, chefs, support and cleaning staff to those working in new management roles.

The increased scope of the contract means relationships with local businesses and the supply chain will grow. ADS is exploring work experience initiatives with schools and liaising with colleges to facilitate apprenticeship programmes in disciplines such as engineering and catering. ADCW will look to expand opportunities for young people within the construction industry by increasing trainee placements.

Outside the garrisons, new medical/dental centres will be built and extended at Larkhill and Bulford. In Tidworth and Bulford, two early years' facilities will be established.

Major General Alastair Dickinson, the Army's Director of Basing and Infrastructure and MOD lead for ABP, said: "This is a significant step forward in the delivery of the Army Basing Programme. The investment is a major part of our programme to deliver first class facilities and will ensure a high-level of support and service for all those units relocating in 2019."

Mr Thomson added: "Over the next four years and beyond, Aspire Defence looks forward to working with individuals and organisations throughout the region to ensure that the PAC contract and ABP variation announced today deliver lasting benefits for both military personnel and civilians. We're proud to serve - and employ - the best."

The PAC Project was originally financed in 2006 with the issue of Bonds with an aggregate par value of £1.453 million, guaranteed by Ambac Assurance UK Ltd and MBIA UK Insurance Ltd, and shareholder finance of £120 million.

For more information about the Army Basing Programme - http://army.mod.uk/structure/33834.aspx.

For more information about Aspire Defence, visit www.aspiredefence.co.uk.

About Carillion

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2015 of some £4.6 billion, employs around 46,000 people and operates across the UK, in the Middle East and Canada.

The Group has four business segments.

Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy services.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.

Middle East construction services - this includes building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com

About Kellogg, Brown & Root Ltd.

Kellogg Brown & Root Ltd, operating from its UK headquarters in Surrey, operates on a global scale working in different sectors delivering diverse and challenging projects.

Kellogg Brown & Root Ltd is a major Programme Management Contractor delivering some of the world's most challenging projects in the UK and overseas. Please see our website for reference projects.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Hydrocarbons and Government Services Sectors. KBR employs over 31,000 people worldwide, with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:

• Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defence, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
• Technology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consulting
• Engineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program management

KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver. Visit www.kbr.com