Wolverhampton-based Carillion is in line for a major contract in Canada valued at £137 million.

The firm yesterday said Carillion Canada had won preferred bidder status for the contract with the Alberta Ministry of Infrastructure and Transportation.

The deal covers five contract maintenance areas (CMSs), covering the equivalent of 5,670 two-lane kilometres of primary and secondary roads in the north east and central regions of Alberta, west of the Alberta/Saskatchewan border.

Key elements of the seven-year contract, which starts in August, include summer and winter road patrolling, wayside rest area maintenance, vegetation management, sign, fence and guardrail maintenance, traffic markings, 24/7 emergency traffic control and winter maintenance.

Carillion's chief executive John McDonough said: "This contract represents a further significant step in develop-ment of our business in Canada, in line with our strategy of growing support services and PPP activities alongside a selective construction capability.

"We are therefore delighted to have been selected for this contract and look forward to working with the Alberta Ministry of Infrastructure and Transportation to provide a first class service for road users."

In Canada, Carillion currently has a five-year highway maintenance contract with the City of Toronto.

In addition, Carillion's joint venture subsidiary, TWD, is working on ten Ontario Ministry of Transportation area maintenance contracts, with contract terms up to nine years.

TWD manages a total of 5,986 two-lane equivalent kilometres of roads with a contract value of £298 million.

TWD is owned by Carillion Canada (85 per cent) and Declan Corporation of Toronto (15 per cent).

Carillion is also providing two of the first PPP hospitals to be built in Canada; the William Osler Hospital in Toronto and the Royal Ottawa Hospital, in which Carillion is committed to invest some £5.4 million of equity.

The hospitals are expected to generate £500 million of construction and facilities management turnover for Carillion.