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South West Water has renewed its long-term maintenance contract with May Gurney for integrated water distribution services in a deal potentially worth up to £170 million.
The contract is for an initial period of three years with a total value of up to £50m, plus possible extensions for up to 10 years with a total value of up to £170m. It also includes an expanded geographical area - May Gurney's current contract only covers part of the region.
Beginning in April 2010, the new contract wil cover repair and maintenance work to the clean water network, including metering for the whole South West Water region.
The services to be delivered include reactive and planned maintenance, leak repairs, new connections, the installation maintenance and renewal of water meters and emergency maintenance and repairs. This will comprise around 91,000 works orders per annum.
Commenting on the deal, Philip Fellowes-Prynne, chief executive of May Gurney, said:
"We are delighted to have renewed and expanded our relationship with South West Water to deliver essential front-line services for its customers across the whole region.
“This significant long-term contract consolidates May Gurney's position as a leading provider of essential support services to the water industry.”
More than 95% of May Gurney's business consists of long-term contracts in the public and regulated sectors. The company said it had a strong forward order book totalling more than £1.4bn and a healthy pipeline of future opportunities. The new South West Water contract further strengthens the order book and supplements the recently announced £500m in new long-term contracts and extensions won over the past six months.
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