China-owned construction giant CIMIC Group has notched up two big contract wins, with its John Holland and CPB Contractors subsidiaries selected to build a $6.7 billion road project in Victoria, and its UGL named to build a 270MW solar farm project in Queensland.
John Holland and CPB were today named as the winning bidders for Victoria’s West Gate Tunnel, one of the largest road upgrade projects in the state’s history.
Other shortlisted consortia included a joint venture between Lend Lease and Bouygues Construction, and an alliance between Salini Impreglio, Fluor Australia and Lane Worldwide Infrastructure.
The West Gate Tunnel will provide Melbourne commuters another option to cross the Yarra River, with the scope of works to include widening of the West Gate Freeway from eight lanes to 12, a tunnel under Yarraville and connections to the port, CityLink and the city.
CPB Contractors said its share of the 50:50 joint venture with John Holland would generate revenue of approximately $2.49 billion.
Construction work is expected to start early next year, with the project to open to traffic in 2022.
CIMIC Group chief executive Michael Wright said the project would leverage the core capabilities of CIMIC and CPB Contractors.
“We are the largest tunnelling contractor in Australia, with considerable experience in creating transforming infrastructure such as the West Gate Tunnel,” Mr Wright said in a statement to the ASX.
Meanwhile, UGL today entered into an early contractor involvement agreement with Genex Power, which is developing a 270MW solar farm project, part of an integrated solar-hydro power generation development located on the site of the historic Kidston gold mine in northern Queensland.
The solar farm is proposed to power the first phase of the Kidston power generation project, which will be a pumped hydro power scheme.
The project will be the first integrated solar/pumped hydro project in the world.
UGL said expected revenue from the deal would be finalised once a binding contract is signed, expected in the coming months.
Managing director Jason Spears said UGL had a proven track record in the design and delivery of solar farms.
“Partnering with Genex to deliver the first Kidston solar project demonstrates UGL’s in-house engineering capability, innovative construction techniques, and ability to provide a fully-wrapped EPC solution – all of which we will apply to the Kidston stage two solar project,” Mr Spears said.
UGL has delivered five solar projects, with an additional five under construction in WA, Queensland, NSW and Victoria.
Also today, CIMIC's mineral processing subsidiary, Sedgman, won around $100 million in contracts with Queensland's QCoal Group.
The scope of works will comprise development of a stockpiling and train load-out facility and a coal handling and processing plant at the Byerwen coal mine in central Queensland.