Insituform Awarded Contracts in London, Ontario, & Austin, Texas
Insituform Technologies Inc. (Nasdaq Global Select Market: INSU) recently announced the renewal of its term contract with the City of London, Ontario, Canada. Valued at US$6.2 million, this is the largest trenchless sewer rehabilitation project in the City’s history. Nearly US$2 million of the 2010 project is being funded through Canada’s Stimulus Funding Infrastructure Renewal Program. Including the successful completion of a US$5.9 million term contract in 2009, Insituform has been awarded over US$12 million in work with the City of London in the past two years.
Work on this project is expected to be completed by December 2010. Insituform CIPP will be used to rehabilitate nearly 25 miles of wastewater pipelines up to 48-inches in diameter. City reports indicate the use of various trenchless technologies, including pipeline relining and repair, have resulted in cost savings of US$81 million over the last five years.
“The City currently uses trenchless technologies for sewer relining and watermain relining. The benefits are many—cost savings, because the road doesn’t need to be excavated; minimized disruption (one day as opposed to four months); and the environmental benefits of not requiring new materials,” said Justin Lawrence, City of London, Division Manager—Construction Administration.
Insituform also has been awarded a three-year term contract by the City of Austin, Texas. The contract, valued at up to $11.7 million, includes using CIPP to rehabilitate sewer pipelines in residential, commercial and environmentally sensitive areas within the City of Austin.
Since 2004, Insituform has completed nearly $20 million of rehabilitation work for the City of Austin. Insituform has received its first work order valued at $2.3 million under this contract. In compliance with the City’s policy, Insituform’s management team will utilize minority-owned and women-owned businesses throughout the project.
This term contract plays a significant and strategic role in restoring the structural integrity of the City’s collection system while reducing inflow and infiltration and eliminating sanitary sewer overflows.
