A 50/50 joint venture between Siemens Mobility and Costain (LON: COST) has won a contract to deliver high-voltage power supply systems for the HS2 rail project, it was revealed on Thursday.
Costain shares rose at the start of Thursday's session following the news, currently up around 0.7%, trading around the 110p per share mark.
Costain said in a release that the contract, covering the 225km route between Birmingham and London, is valued at approximately £300 million, with options for extensions.
The project includes the design, construction, and maintenance of the power supply systems.
The maintenance phase, which is set to last seven years, is worth an additional £32 million to the joint venture, according to Costain.
The contract win is in addition to the announcement earlier this month where Costain said it is to be awarded a contract as a sole supplier to deliver tunnel and lineside mechanical and electrical systems for HS2.
“This contract marks the start of a new partnership with Siemens Mobility and its team of experts who share our values and ambitions,” said Alex Vaughan, CEO of Costain. “Providing a safe, reliable power system will be critical to the success of HS2, with rail electrification a crucial part of the UK's decarbonisation plans.”
The high-voltage power supply systems are an essential component of HS2, which aims to enhance rail connectivity, reduce travel times, and support the UK’s transition to net-zero emissions.
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