Leighton finalises $611m Gateway contract

06/08/2013 - 13:22

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Leighton finalises $611m Gateway contract

The $1 billion Gateway WA roads project is set to proceed to major delivery, with finalisation of the project price, scope of works and construction methodology.

Following negotiations, the state and federal governments and the Gateway WA project alliance have agreed to a contract cost target of $899 million.

The Gateway WA consortium, consisting of Leighton Contractors, Georgiou, GHD, AECOM and BG&E, was awarded the right to deliver the massive project in partnership with Main Roads WA in November 2012.

Leighton Contractors managing director Craig Laslett said Leighton’s 68 per cent share of the $899 million contract reflected its ongoing role in delivering transport infrastructure in WA.

“This is a longstanding core skill for Leighton Contractors and WA is an increasingly important market for us across our activities in the infrastructure, mining, energy, services and telecommunication sectors,” Mr Laslett said.

The federal government is pitching in $686 million towards the Gateway project through its Regional Infrastructure Fund and Nation Building Program, with the state government providing the remaining $318 million.

Treasurer Troy Buswell said the finalisation of costs paved the way for the project to be delivered in full by early 2017.

“While the full scope of works will be completed by early 2017, completed sections of the project will be opened to traffic where possible to provide immediate relief and benefit,” Mr Buswell said in a statement.

The Gateway WA project aims to upgrade road networks around the Perth domestic and international airports and the Kewdale and Forrestfield industrial areas.

The package of works includes upgrades to intersections and freeway links on Tonkin and Leach highways, as well as Orrong Road and Roe Highway.

Construction of the first stage of the project - an on-ramp to Tonkin Highway from Abernethy Road - is set to be completed next month, Mr Buswell said.

 

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