08/10/2018 - 10:51

Decmil wins $277m EPC solar contract

08/10/2018 - 10:51

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Decmil Group has finalised a $277 million contract with Chinese group Maoneng to build a 255-megawatt solar farm in NSW, eight months after signing a memorandum of understanding for the project.

Decmil wins $277m EPC solar contract
Maoneng has also developed the Mugga Lane solar park in the ACT.

Decmil Group has finalised a $277 million contract with Chinese group Maoneng to build a 255-megawatt solar farm in NSW, eight months after signing a memorandum of understanding for the project.

Osborne Park-based Decmil said today it had signed an engineering, procurement and construction contract for the Sunraysia solar photovoltaic project.

The project represents Decmil’s second solar EPC contract, but is a big leap in scale after completing a $19.2 million contract for the 10MW Gullen solar farm in NSW in September last year.  

The company also announced an MOU with SolarReserve for a 70MW solar PV project in 2017, however, the project has been put on hold as SolarReserve pursues a solar thermal project.   

Decmil chief executive Scott Criddle said the company was looking forward to partnering with Maoneng.

“Both organisations bring together complementary skills to successfully deliver this project to the Australian renewable energy market,” he said.

“Decmil has for over 40 years successfully delivered major regional infrastructure and, following a detailed planning process, is operationally ready to deliver this project.”

The news comes after another engineering contractor, RCR Tomlinson, announced in August that it intended to focus on alliance style contracts in the wake of a cost blowout on a renewable energy EPC contract.

EPC contracts require the contractor to deliver a project within a specified time and budget, placing the risk of cost increases and timing delays on the contractor.

Alliance contracts spread the risk between the contractor and the owner of the project.

Maoneng has entered into an equity partnership with global infrastructure investor John Laing Group for the development of the Sunraysia project.

The solar farm will be located near Balranald, in the south-west of NSW.

It will be Maoneng’s second major project in Australia, following completion of the Mugga Lane solar park in the ACT.

The project has secured debt financing from a consortium of domestic and international banks.

Shares in Decmil closed 1 cent lower at 80.5 cents today after briefly spiking as high as 88.0 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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