Downer EDI said it has won a series of contracts worth more than NZ$224 million with Auckland Council and its transport company for maintaining roads, parks, playgrounds and sports fields and a wide range of buildings from council offices to residential properties.
The Australia-based engineering company said Auckland Transport awarded it a four-year $130 million roading contract covering maintenance across its south western region. The contract can be extended twice by two years each which would give the contract a $260 million potential value, it said.
The council has awarded it five-year maintenance contracts covering all parks, playgrounds and sports fields in South Auckland rural and urban areas worth $70 million over five years which can be extended by a further three and then two years, giving a potential value of $140 million.
The council has also awarded it a three-year contract to provide electrical, plumbing, carpentry and mechanical services, including air conditioning, on many properties.
Downer has two NZX-listed debt securities.
Its $150 million of senior bonds maturing in September last traded at $102.413 per $100 face value while its $200 million of subordinated perpetual preference shares, which are due to be reset in June 2012 at a 4.05 percent margin over the one-year swap rate, last traded at $79.091 per $100 face value.
(BusinessDesk)
1 Comments
This is interesting. Would like to know, if there were any other companies bidding for the contracts for this services? Or has Downer a kind of monopoly here with Auckland City?
I wanted to write to Auckland City to ask to check their department responsible for maintaining parks and playgrounds, because they are "overmaintained" , but did not know is is Downer's business.
Visiting several parks and playgrounds with my grandchild regularly, I was wondering about the amount of Auckland City Trucks ( 3 - 4 ) and personnel at certain parks, who were leasurly mowing grass which does not need mowing, emptying rubbish bins almost empty, cleaning toilets for ages, having their (deserved) lunchbreak.........
Also about 2 years ago in the area where I regularly walk in the evenings, countless Downer staff and equipment was for 2 months slowly ripping out slanted shaped edging stones between a short strip of road and footpath to replace the edging with similar, but square edging stones. There was nothing wrong with either road nor footpath. What a waste! The whole neighbourhood was shaking their head in disbelief and commenting that this must be a kind of work program to help to keep unemployment figures down.
But it is rate payers money.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.