Leighton IBA JV win $50m Ord contract

The state government has selected a joint venture between Leighton and Indigenous Business Australia as its preferred proponent for a $50 million, construction contract at the Ord-East Kimberley expansion project.

State cabinet today formally approved the contract, the first major agreement for the $415 million expansion project which will receive both state and federal funds.

Today's contract will come out of state funds, specifically from the royalties for regions program. The state government has committed $220 million towards the project while the federal government has pledged $195 million which will be directed towards social infrastructure.

Under the contract, the JV will build 19km of irrigation channel, a 13km road extension and irrigation control structures.

Work is expected to start next month during the dry season. The state government plans to award the contract for phase two in time for next year's dry season.

Regional Development and Lands Minister Brendon Grylls said one of the major drivers of the Ord expansion project was indigenous participation and engagement.

He said that 40 per cent of the tender evaluation process was judged on indigenous content, which was normally at around 10 per cent.

However a minimum target of the number of indigenous people to be employed for the contract has not yet been set.

Premier Colin Barnett said today that final details of the contract were still being negotiated.

IBA is an advisory service for indigenous people and is within the federal government's Indigenous Economic Development Strategy, which is aimed at closing the gap between indigenous Australians and other Australian's standard of living.

The Transfield / Ertech JV has been named as the reserve proponent.