Thursday, July 31, 2003

Equion plc, a division of John Laing plc, has reached financial close on the contract to design, finance and construct an aircraft maintenance facility in Wales for the Defence Aviation Repair Agency (DARA). The Equion led consortium also includes Laing O’Rourke and Emcor Services Limited.

Richard Weston, Managing Director of Equion said:

“We are delighted to have been able to work closely with DARA, Laing O’Rourke and Barclays Bank to create an innovative financial and contract structure which has enabled a cost effective solution whilst retaining high delivery standards. To be awarded another MOD project reinforces our track record of success in providing funding solutions for specialist developments.”

Steve Hill, DARA’s Chief Executive said:

“This major investment project will significantly improve DARA’s future competitive abilities across much wider markets. Rationalising our business into a single purpose built facility will help to further reduce our overheads and costs.”

The hangar will consist of a 48 bay fast-jet, deep maintenance hangar with full support facilities. The design will enable changes in future service requirements and can facilitate the following aircraft:

• C130
• A320
• B737

Enabling works commenced on site in March 2003, and Laing O’Rourke are due to complete construction in November 2004. The facility will be maintained by Emcor Services Limited post-completion.

This project will be the cornerstone of the Welsh Development Agency’s proposed regeneration of the 1000-acre St Athan site.

Relevant websites
http://www.equion.plc.uk/
http://www.dara.mod.uk/

Notes to Editors

1. Project Details

• Capital Value of the project is in excess of £76 million.
• The aircraft maintenance facility will represent some 45, 000 square metres.
• Macquarie Bank advised the Equion consortium on funding.
• Senior Debt provided by Barclays Bank plc.
• Ove Arup and Partners were commissioned by DARA to progress the design of the project in conjunction with HLN Architects and DLE Cost Consultants and have been retained by Laing O’Rourke.
• Construction contract with Laing O’ Rourke Wales and West.
• Facilities Management with Emcor Services.

2. Images
Computer generated images of the new facilities are available.

3. The Defence Aviation Repair Agency (DARA) was created in April 1999 by amalgamating the RAF’s Maintenance Group Defence Agency (MGDA) and the Naval Aircraft Repair Organisation (NARO). It is the largest Government owned aerospace repair facility within Europe, delivering one-stop-shop aerospace support to the MoD, overseas governments and Industry. DARA became a Trading Agency of the MoD in April 2001.

DARA employs over 4000 staff located on four sites in the UK – St Athan near Cardiff; Fleetlands at Gosport, Hampshire; Almondbank in Perthshire, Scotland; and Sealand in Flintshire, North Wales.

4. Equion plc, a division of John Laing plc, is a specialist provider of facilities in the PFI (Private Finance Initiative) and PPP (Private Public Partnerships) markets with a long-term perspective and approach. Equion offers a combination of skills and experience, from planning and funding through to design, construction and operation. Equion is actively involved in the management of a wide range of police, education, health, defence and special purpose serviced accommodation projects including:

• 17 new PFI police stations & facilities for the Greater Manchester Police Authority
• South East London Police Stations for the Metropolitan Police
• the Metropolitan Police Specialist Training Centre
• the Ministry of Defence Main Building refurbishment in Whitehall
• the new Norfolk & Norwich, and Queen Elizabeth (Greenwich) Hospitals
• the Joint Services Command and Staff College at Shrivenham
• Highlands Secondary School in Enfield
• South East Essex College at Southend

The company is one of the most successful participants in the Government's Private Finance Initiative and has a proven record of delivering new investments on time and on cost. Equion won the Infrastructure Journal PPP Developer of the Year Award in February 2003 for the second year running. www.equion.plc.uk

5. John Laing plc, a publicly quoted company, holds a large and expanding portfolio of investments spanning transport (including 100% ownership of Chiltern Railways), health, education and special purpose government facilities. The majority of the investments are within the UK though a number are in continental Europe and Australia.. www.laing.co.uk

6. EMCOR in the UK is the leading specialist mechanical and electrical engineering and facilities services company, with more than 100 years of experience.

EMCOR provides a total life cycle of care for a facility, including the design, build and installation of mechanical and electrical systems, then the ongoing maintenance of these services and the provision of integrated facilities management.

EMCOR is part of EMCOR Group, Inc., the world's leading provider of mechanical and electrical construction and facilities services. EMCOR Group comprises 65 operating companies and over 25,000 employees in more than 130 locations throughout the US and Canada, in Europe, the Middle East, Far East and South Africa. EMCOR Group is a publicly listed company whose stock is traded on the New York Stock Exchange.