Cardno wins development assistance projects

3/31/2009

Cardno Limited (ASX:CDD) today announced that it has been appointed preferred tenderer to the $150 million five-year Papua New Guinea–Australia Law and Justice Partnership (PALJP) funded by AusAID. This project replaces Cardno’s previous five-year appointment in this sector.

Cardno also has had its contract for the AusAID-funded, Basic Education Program in Indonesia, extended until June 2010. The extension increases the total contract value under management on this project to $171 million.

Cardno Managing Director Mr Andrew Buckley noted that these project wins further added to Cardno’s strong position in the International Development Assistance market. He said that Cardno’s decision to expand its presence in the development assistance arena over the last 4 years via the acquisition of Cardno Acil (Australia), Cardno Agrisystems (U.K.) and Emerging Markets Group (Washington, D.C.), has positioned the company as a global service provider in a sector relatively unaffected by the current global economic conditions.
 
“Whilst some private sector markets are slowing due to economic contraction, Cardno’s development assistance businesses are well placed to grow,” said Mr Buckley.
 
Mr Buckley said that Cardno’s development assistance businesses were also building solid partnerships with private sector companies in the oil and gas, construction and mining sectors by providing physical and social infrastructure services.
 
“Resource companies increasingly want to make sure that the funds they spend on local communities in developing countries are well spent. Cardno has the skills to help them achieve this” said Mr Buckley.
 
Mr Buckley said that in addition to Cardno’s development assistance work there were also sound opportunities for the group in the public sector, particularly in the transportation and major infrastructure project markets – where the Australian and US government stimulus packages would help underpin future project workloads.
 
”Despite the good conditions for the International Development Assistance and public sector infrastructure businesses, the uncertainty in private sector markets continues to make it difficult to reliably forecast the future outlook” said Mr Buckley. “We would certainly like to see a recovery in urban development markets to help drive ongoing growth. We anticipate other growth opportunities, either organic or through acquisitions, to present through the course of this calendar year” he said.
 
To position Cardno for further growth, as well as maintaining its low debt levels, the company announced a Share Purchase Plan (SPP) last month. The closing date for the SPP is 3 April 2009. The issue price for the SPP is the lower of $2.80 or a 7.5% discount to the 5-day volume weighted average price prior to the close of the offer.
 
For more information on Cardno’s SPP please refer to the company website or contact ABN AMRO Morgans who have been appointed as Manager of the Plan.
 
ENDS.
 
For further information:
Andrew Buckley, Managing Director
07 3369 9822 or 0412 059 526

Jeff Forbes, Chief Financial Officer
07 3369 9822 or 0408 756 790
 
About Cardno: Cardno is an integrated professional services provider, locally delivering the specialist advice necessary to create or improve the physical and social infrastructure that underpins communities around the world. Cardno’s team comprises leading advisers who plan, design, manage and deliver sustainable projects or community programs. Cardno is an international company, listed on the Australian Securities Exchange [ASX: CDD].