OTOC wins $28.7m Nauru contract

Perth-based construction company OTOC has won a $28.7 million contract to work on the federal government’s migrant processing centre on the Pacific island of Nauru.

The contract, to provide labour and material for stage one of the facility, has been awarded by Brisbane-based construction company Canstruct.

Stage one comprises a 900-person facility.

The contract is inclusive of $12.2 million worth of early works previously announced by OTOC.

OTOC chief executive Adam Lamond said “we look forward to working with Canstruct and the federal government to deliver this important project”.

Mr Lamond added that the awarding of the contract was strong recognition of OTOC’s construction ability in remote environments and the quality of work carried out by OTOC so far in Nauru.

He said the contract was a strong platform to target additional work in the government-sponsored construction centre and would enable the company to diversify its earning profile.

OTOC’s share price soared on the back of the news, rising 32 per cent to 6.6 cents.

Canstruct, which specialises in building in remote and difficult locations, said it has completed substantial accommodation at Nauru in less than 4 months and met its scheduled targets despite weather and logistical difficulties.

It is currently building other facilities within the centre including another 6 accommodation buildings, kitchen, recreation facilities, medical centre and administration areas.