Downer wins $425m Main Roads contracts

Downer EDI is set to secure two major contracts with Main Roads which the company says are worth $425 million.

On Friday, Transport Minister Simon O'Brien said a joint venture between Downer EDI and Mouchel International (Jersey) had been awarded the Integrated Services Arrangement contract for maintenance of State roads in the metropolitan area.

This is the first contract awarded to the joint venture.

In a statement to the Australian Securities Exchange, Downer said the Metropolitan ISA was worth $50 million a year for five years.

The contract includes the maintenance of pavements, drainage systems, roadside areas, signs, markings bridges and duel-use paths.

"The Metropolitan ISA represents the latest generation in road network maintenance alliances in Australia," said Downer chief executive officer Grant Fenn.

The DownerMouchel joint venture is also the preferred supplier for the Mid-West ISA agreement covering the Gascoyne Region.

The second contract is valued at $175 million over five years.

Separately, Downer has secured a five year contract renewal valued at over $30 million to deliver routine road maintenance east of Melbourne.

The Metropolitan ISA network is the first of seven ISAs.

The remaining contracts will be awarded over the next 10 months.