17/03/2020 - 15:54

Two consortia short-listed for $850m Bunbury project

17/03/2020 - 15:54

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Spanish engineering giant ACCIONA is continuing to challenge CPB Contractors’ dominance of the Western Australian infrastructure market, with the two groups heading competing consortia for the Bunbury Outer Ring Road.

Two consortia short-listed for $850m Bunbury project
The two short-listed consortia will be invited to submit detailed proposals to design and construct the Bunbury Outer Ring Road. Photo: Main Roads

Spanish engineering giant ACCIONA is continuing to challenge CPB Contractors’ dominance of the Western Australian infrastructure market, with the two groups heading competing consortiums for the Bunbury Outer Ring Road.

ACCIONA has formed a powerful consortium with ASX-listed contractors NRW Holdings and MACA, along with AECOM and Aurecon.

CPB Contractors’ competing consortium comprises indigenous company Carey Mining (through Carey MC), Osborne Park-based Densford Civil, GHD and BG&E.

The two short-listed consortia will be invited to submit detailed proposals to design and construct the Bunbury Outer Ring Road.

It is anticipated an alliance contract will be awarded before the end of the year, with construction of the project to begin in 2021.

CPB Contractors (formerly Leighton Contractors) has long been the leading contractor in the WA infrastructure market, especially since John Holland became mired in problems with the Perth Children’s Hospital contract.

CPB’s recent wins include the Thornlie and Yanchep rail projects, which are being delivered through a single $1.05 billion contract.

Its short-listed competitor in that case was a consortium led by ACCIONA subsidiary Coleman Rail.

As well as delivering multiple Main Roads Western Australia and Public Transport Authority projects, CPB is a major player in the resources sector, having won big contracts with BHP and Rio Tinto recently.

ACCIONA’s largest contracts in the WA market are for engineering and construction of two waste-to-energy projects under way at Kwinana and Rockingham, worth a combined $1.2 billion.

It has teamed with Clough to win two contracts in the Pilbara, for Rio Tinto’s Koodaideri railway and for Main Roads’ bridge over the Koodaideri railway.

Transport Minister Rita Saffioti said the Outer Ring Road was the biggest transport infrastructure project ever planned for the South West.

“Maximising local business procurement is a key objective for the project,” she said.

“The procurement process includes set criteria to ensure potential contractors incorporate initiatives to maximise local content.

“We have also opened a local capability fund to support small and medium South West firms to tender for work on Bunbury Outer Ring Road.

“Significant mandatory targets for Aboriginal employment and Aboriginal business involvement will need to be met by the alliance contractors during the delivery of the project.”

As well as the main construction contract, Main Roads will be calling for early tenders soon for the supply of an initial quantity of crushed rock road base.

Deputy Prime Minister and Regional Development Minister Michael McCormack said well-planned infrastructure projects were vital for the Bunbury area.

“The Bunbury Outer Ring Road project has been planned for a number of years, recognising the significance of delivering vital infrastructure to provide a safer and more efficient road system for the South West of WA,” he said.

“Bunbury Outer Ring Road will provide relief for local residents by removing freight and regional traffic from local roads while maintaining easy access to Bunbury and other regional destinations.

The $852 million project is fully funded, with the Australian government contributing 80 per cent of funding ($681.6 million) and the WA government contributing 20 per cent ($170.4 million).

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