Re Contract

Carillion PLC
11 June 2003


Carillion appointed preferred bidder for its first NHS primary care contract
worth around £80 million for Birmingham and Solihull


Business and Construction Services company Carillion has been appointed
preferred bidder for the development, construction, provision of facilities
management and financial backing for doctors' surgeries and other primary care
facilities across Birmingham and Solihull. The contract, a joint venture with
specialist development company PRIME, is estimated to be worth around £80
million over the first five years of a potential 20 year partnership.


Through the LIFT (Local Improvement Finance Trust) programme, a total of 12 
'one-stop' centres will be created by The Carillion Prime Partnership to bring
social services closer to healthcare provision. Over the next two years, a
further 30 facilities will either be improved or replaced.



John McDonough, chief executive of Carillion said: 'We are delighted to be
working with Birmingham and Solihull as a key partner on this project, which is
a an important move towards the creation of sustainable communities.



'Health is one of our key growth sectors and the LIFT programme is one of a
number of important new developments that underpin the Government's commitment
to improving services through working with the private sector to deliver total
healthcare solutions.



'Being appointed preferred bidder on our first LIFT contract is therefore a
further significant step in the development of Carillion Health, a recently
launched business led by managing director Adrian Bull, that draws together the
extensive skills and expertise we have in this sector.'



LIFT aims to create high quality, comfortable premises for the delivery of local
healthcare, replacing outdated or poorly maintained premises throughout
Birmingham and Solihull.



Work on the first three schemes will start in October: the city corridor scheme
in West Birmingham; the Chelmsley Wood scheme in North Solihull and the Woodgate
Valley scheme in South-west Birmingham.



Carillion already has an extensive portfolio of fully operational PPP hospitals
and contracts for facilities management in other NHS hospitals and is also
currently the preferred bidder on its sixth PPP hospital in Oxford and on the
new William Osler Hospital in Ontario, Canada, its first overseas PPP hospital.



Carillion has also been selected to bid for Diagnostic and Treatment Centres
(DTC) in the UK. The DTC programme is estimated to involve some £2 billion of
construction work over the next few years plus medical and support services
worth in the region of £1.5 billion per annum. This is in addition to
opportunities under the £1 billion LIFT programme and the NHS ProCure 21
initiative for better capital procurement through new partnerships with the
private sector.



For further information contact

John Denning, Director Group Corporate Affairs           01902 316426
Paula Manning            Group Communications            01902 316898



Notes to editors



The Carillion Prime Partnership is a joint venture between Carillion plc and
PRIME, a specialist development company based in Worcester.



The partners involved in the LIFT project are the five Birmingham Primary Care
Trusts of Eastern Birmingham, South Birmingham, North Birmingham, Heart of
Birmingham Teaching and Solihull and  Birmingham City Council and Solihull
Metropolitan Borough Council.



Other organisations involved are Birmingham and the Black Country Strategic
Health Authority and all acute specialist mental health trusts covering
Birmingham and Solihull.




                      This information is provided by RNS
            The company news service from the London Stock Exchange