Jarvis confirms rail engineering contract worth £55m for Chiltern Railway's Project Evergreen 3

With reference to RNS announcement 5415F released at 10.30 am on 14 January 2010, the Board of Jarvis plc is pleased to confirm that Jarvis Rail, its multi-disciplinary railway engineering business has successfully secured a contract worth in the region of £55m to undertake the rail elements of the Mainline phase of Chiltern Railway's Project Evergreen 3.

Following a successful joint bid Jarvis Rail will be working very closely with principal contractor civil engineering specialists BAM Nuttall, as its subcontractor.

The total value of the rail and civil elements of the Mainline phase of Project Evergreen 3 is estimated to be approximately £94m. The majority of the rail associated work is expected to be undertaken in the next financial year 2010/2011.

The contract also contains the exclusive option to extend the works, subject to relevant approvals, to cover the £96m upgrade of the Bicester to Oxford line which is due to commence in April 2011. The rail associated elements of this second phase are expected to be worth in the region of £36m.

Stuart Laird, Chief Executive Officer Jarvis plc said: "I am delighted that we have been successful in securing the rail works on this major contract. It is a huge opportunity for us and is testament to the effort we are putting into developing relationships with potential new partners and customers. We have worked very closely with the team at BAM Nuttall to provide Chiltern Railways with a comprehensive solution which draws on our combined experience in rail and civil engineering. We are very much looking forward to working with BAM Nuttall and Chiltern Railways to ensure that Evergreen 3 is successfully and safely delivered."

David Belsham, Director BAM Nuttall said: "We are delighted to have been appointed as the main contractor for this prestigious scheme. Together with our partners Jarvis and Atkins we are looking forward to contributing to the upgrade of this important rail link and playing our part in improving the travel experience for travelling passengers."

Adrian Shooter, Chairman Chiltern Railways said: "We are pleased to have engaged with companies of BAM Nuttall and Jarvis's experience and expertise to undertake Evergreen 3. Working closely with Network Rail, we are going to create a new mainline railway for the people of Oxfordshire and the Midlands. This deal demonstrates that real improvements to rail services can be paid for without public subsidy by attracting people out of their cars and onto trains."

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