Search Share Prices
Capita scores £56m TfL contract extension to manage LEZ
Business process management and outsourcing solutions provider Capita announced on Tuesday that it has agreed a £56m contract expansion with Transport for London.
The expansion will see the FTSE 250 listed company, already in place as the manager of TfL's congestion charging, T-charge and low emission zones, implementing systems and office based processes for the transport organisation's new ultra-low emission zone (ULEZ).
Jon Lewis, chief executive of Capita plc, said: "This agreement is testament to Capita's extensive expertise in the provision of technology led end-to-end customer management, and associated software and IT services. It further strengthens the long term strategic partnership between Capita and TfL to deliver mission-critical services across the London transport network."
The contract is set to run until 2021 and may be extended for £37m for each successive five-year period.
Paul Cowperthwaite, general manager of road user charging at TfL, said: "This continuation in our relationship with Capita will enable us to deliver a project which is key to improving the health and quality of life of Londoners."
The ULEZ is set to replace the T-charge zone in April 2019 and is projected to result in a 50% reduction in NOx emissions by 2020 by ensuring vehicles in the zone meet robust exhaust emission standards or pay a daily charge to travel.
As of 1609 BST, Capita PLC's shares were up 1.20% at 139.30p.