CIMIC's Ventia enters $300M-a-year service contract with SA Gov

CIMIC’s Ventia enters $300M-a-year service contract with SA Gov

Ventia, a 50/50 investment partnership between The CIMIC Group and its co-investor, has entered a contract with the South Australian Government for provision of essential infrastructure services to government-owned facilities such as schools, hospitals and police stations.

Part of the South Australian Government’s Across Government Facilities Management Arrangements (AGFMA), the contract with Ventia has been signed on behalf of 30 SA government agencies.

The contract will help Ventia generate $300 million per year over the initial term of five years and seven months, with Ventia expecting the contract to be further extended for three two-year extensions.

“South Australians rely on the essential services delivered at more than 3,500 government locations across the state and Ventia is pleased to support the government of South Australia with the delivery of facility management services to the community, 7 days a week, 365 days a year,” Ventia Group Chief Executive Officer Dean Banks said.

“Ventia is looking forward to partnering with local small to medium businesses to help us deliver these services, keeping investment and employment in South Australia,” Ventia Group Executive of Defence and Social Infrastructure Derek Osborn said.

“We look forward to working with the government of South Australia, the Department for Infrastructure and Transport and the existing employees to ensure a smooth transition to the new contract and providing a high-quality service to the people of South Australia throughout the contract period,” Mr Osborn added.

AGFMAs are an integral part of the South Australian Government’s commitment to the maintenance, management and improvement of government building assets that underpin essential community services.

The arrangements enable the state government to identify the range of work that needs to be done, negotiate a fair price, manage risk, appropriately maintain public records and ensure that the work is completed to the required standards.

Transition activities for the contract will begin in July and operations will commence in December 2021.