Construction giant Carillion has landed its second major deal in as many weeks after revealing it would build a new £116 million Scottish prison.
The Wolverhampton-based firm won the tender to build the new HMP Low Moss in East Dunbartonshire.
The Scottish Prison Service (SPS) contract will see Carillion design and construct a 700-cell jail, including house blocks, office accommodation, staff and visitor facilities, a health centre, education and training facilities, a multi-faith centre, a laundry, kitchen and industrial workshops. Preliminary works are due to start later this year following completion of the planning process and is expected to be completed in 2012.
News of the project comes just days after the company sealed a £275 million contract to build a Parliament building in Oman.
Chief executive John McDonough said: “Prisons and other secure establishments represent a key market for Carillion and this latest success further enhances our position as a leader in this sector.
“We are delighted that the Scottish Prison Service has awarded this contract to Carillion and we look forward to working with the SPS, with whom we have built a strong long-term relationship,” he added.
Carillion now has to agree planning proposals with East Dunbartonshire Council for the prison.
The company has already completed work on demolishing the previous prison on the site.
Mike Ewart, chief executive of the SPS, welcomed the news and said the new prisoner places will relieve overcrowding pressures in Scotland’s prisons. Mr Ewart added: “We are working closely with our trade unions to ensure that this first new public sector prison for many years is a success.
This latest contract brings the value of work recently awarded to Carillion by the SPS to over £250 million. Carillion’s recent contracts for the Scottish Prison Service include a £60m redevelopment at HMP Edinburgh, completed earlier this year, the £50m redevelopment of a young offender’s institution in Polmont, due for completion in January 2010, and a £38m contract for HMP Shotts that will begin in July 2009.
The Birmingham Post reported last week that shares in Carillion rose after the company confirmed it would build the new parliament building in Oman.
Carillion produced a pre-tax profit of £53.6 million for the six months to the end of June 2008, and analysts expect a same-basis result of £179 million for the same period this year.