Serco signs Ontario DES contract
Serco signs Ontario Driver Examination Services contract
28 June 2013
Serco Group plc (Serco), the international services company, today announces
that it has reached financial close for the contract to provide Driver
Examination Services for the Ontario Ministry of Transportation (MTO). The
contract will see Serco continue to provide these vital services in a ten-year
partnership with estimated revenues to Serco of approximately C$500m over the
contract term.
Serco has been supporting MTO since 2003, and will continue to provide the full
spectrum of services including application processing and the delivery of
vision, knowledge and road testing across all license categories. Serco will be
responsible for overseeing approximately 575,000 knowledge tests and 675,000
road tests on an annual basis at 95 testing centres across Ontario. Under the
new contract, Serco's role will expand to include upgrading and enhancing
information technology solutions to improve processing, scheduling and the
delivery of services to drivers.
Serco's bid was developed in partnership with Plenary Group, a leading
specialised developer of long-term Public-Private Partnership (PPP) and
Alternative Financing and Procurement (AFP) projects, who have over C$6bn in
project capitalisation across Canada. For the new partnership, Plenary Group is
the developer, equity investor and debt arranger for the project. In this
capacity, Plenary Group has made significant financial commitments to guarantee
the consortium's service delivery performance for the concession term. This new
structure of direct customer financing replaces Serco's previous use of cash
resources and debt facilities to finance the partnership.
Christopher Hyman, Chief Executive of Serco Group plc, said: "We are delighted
to be continuing to support the Ministry of Transportation to ensure road
safety in Ontario and across Canada. Together with our recent award of the
significant new contract to provide traffic management services in Virginia,
Serco is demonstrating its international skills in the transportation market
and our commitment to high quality and efficient services for our customers. We
are making excellent progress in our strategy to further diversify Serco's
Americas portfolio."
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226
About Serco
Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.
Around the world, we improve essential services by managing people, processes,
technology and assets more effectively. We advise policy makers, design
innovative solutions, integrate systems and - most of all - deliver to the
public.
Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation, BPO,
defence, education, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
sectors.
More information can be found at www.serco.com
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