May Gurney has been awarded the Sewerage Services East Region maintenance contract by Severn Trent Water, valued at up to £62 million from April 2011.

The contract period is five years with an option to extend for a further five years. In addition there is potential for the value to increase when private drains and sewers (PDaS) are transferred to water companies, the current date for which is October 2011.

May Gurney has now secured 11 long-term AMP5 maintenance contracts with the bidding process still ongoing. The company is well positioned to take advantage of the shift towards ongoing repair and maintenance activities in addition to the many other regulatory-driven spend opportunities in the utilities market, including power and telecommunications.

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Philip Fellowes-Prynne, May Gurney Chief Executive, said: "We are delighted to be working with Severn Trent Water on this new maintenance contract.

"May Gurney's proven track record of assured operational delivery, continuous improvement and innovative service design - all based on deep, long-term client relationships - means that we are well placed to secure the best outcomes for Severn Trent and its customers.

"Moreover, our customer service and community engagement expertise will be especially important when private drains and sewers are transferred to water companies."

(CD/KMcA)