Learmonth redevelopment value set at $662m

The estimated cost of redevelopment work at RAAF Base Learmonth near Exmouth is $662 million, a Department of Defence submission to a federal inquiry has revealed.

The project involving an upgrade to the airfield at RAAF Learmonth to facilitate KC-30A aircraft was previously designated funding from an almost $4 billion pool designated to upgrade defence bases in the nation’s north.

The Department of Defence submission confirms the anticipated cost of redevelopment work at Learmonth at $662.2 million.

The work will allow KC-30A aircraft to use the existing runway and parallel taxiway at the facility, and create connecting taxiways and dedicated parking aprons for large aircraft - including KC30A - for the unloading of cargo and explosives and weaponry.

The KC-30A is the largest aircraft in the defence fleet – a modified A330 Airbus which provides strategic airlift and air-to-air refuelling.

The upgrades to the northern bases were announced earlier this year off the back of the Defence Strategic Review, which identified the bases as an immediate priority area for upgrade to protect the nation’s security interests.

“Logistics resupply of materiel by air to RAAF Base Learmonth is critical given its remote location, strategic capabilities at the nearby Harold E Holt Defence Establishment and the vulnerabilities of alternative modes of resupply,” the Defence submission said.

The work is expected to provide opportunities for local operators “through construction trade packages and provide employment opportunities in the Exmouth region”.

At its peak, the Learmonth work is expected to need a fly-in, fly-out workforce of around 300 people.

In October, CIMIC Group subsidiary CPB Contractors was tapped by the Department of Defence for involvement in the development phase of the upgrade projects.

At the time, CIMIC said the scope of work included upgrades to runways, taxiways, parking areas and aeronautical ground lighting, asphalting and other enhancements.

“Our relationship with the Department of Defence stretches over decades and we are pleased to continue to be relied upon to deliver infrastructure upgrades for these vital airbases,” CIMIC executive chairman Juan Santamaria said when the award was announced.

The value of the work was not disclosed at the time.

The Defence submission said current contracts in place for a project manager/contract administrator, design services consultant and early involvement head contractor would be extended to delivery, “subject to a value for money assessment of their cost proposal”.  

A tender for the delivery of a tranche of fuel storage equipment at Learmonth, including at least two below-ground diesel storage tanks with a combined capacity of 60,000 litres, is currently open.

The contract has an estimated value of between $100 million and $140 million. The fuel storage tender documents list GHD as project manager/contract administrator.

In November, Business News revealed a large work camp had been built on an old baseball diamond at Harold E Holt naval base, as a temporary accommodation for workers in the area.

Work at Learmonth is expected to begin in mid-2024, with completion by the end of 2028 subject to parliamentary approval.

Submissions to the inquiry into the project will close at the end of January.