UPDATED: Work to start on Roe 8

Work will start on the controversial $540 million Roe 8 highway extension project before the next state election, with a consortium led by CIMIC Group awarded one contract for the project today and a second contract expected in coming days.

Newly appointed Transport Minister Bill Marmion said a consortium comprising Cimic subsidiary CPB Contractors, Georgiou Group, WA Limestone, GHD, AECOM and BG&E would be awarded the contract.

Work is expected to begin later in the year by the consortium, which was named preferred proponent for the contract in October last year, before the project hit legal hurdles.

It’s the same consortium that built the $1 billion Gateway WA roads project around Perth Airport.

“This project has state and Commonwealth environmental approvals and will be delivered under strict environmental conditions and regulations,” Mr Marmion said.

“It will also create between 400 and 500 direct jobs and thousands of indirect job opportunities during construction.”

Federal Minister for Urban Infrastructure Paul Fletcher said it was welcoming news that a contract for Roe 8, which forms part of the $1.9 billion Perth Freight Link project, had been approved.

“We look forward to further announcements in the near future in relation to development of the next stage of Perth Freight Link, which will extend from Stock Road to the Fremantle Inner Harbour,” Mr Fletcher said.

The opposition had been urging the state government not to sign contracts for the toll road ahead of the March 2017 state election, promising to abandon plans if it takes power.

But Labor has stopped short of saying it will tear up contracts, while former transport minister Dean Nalder insisted (the day before he quit cabinet last month) that risks associated with signing them could be managed with escape clauses.

He also refused Labor's calls for the legal advice behind that view to be released, saying it was subject to legal professional privilege.

Premier Colin Barnett said today the 5 kilometre, four-lane dual carriageway extension of Roe Highway from the Kwinana Freeway intersection through to Stock Road would deliver significant benefits to the local economy.

“This project will substantially reduce congestion, improve freight efficiency, road safety and access to key activity centres including Murdoch,” Mr Barnett said.

“Roe 8 will redistribute more than 6,900 trucks and 74,000 light vehicles per day from existing routes in the area.”

Today's government statement said Roe 8 has a budget of $540 million, with the extension of Roe Highway between Kwinana Freeway and Coolbellup Avenue expected to cost $340 million, while the Roe Highway/Stock Road interchange is expected to cost $110 million.

About $45 million has been allocated for the management of environmental sensitivities, as well as the provision of improved recreational access to the area.

CIMIC told the ASX late today the CPB Contractors-led consortium has reached contractual close with Main Roads WA to deliver the first part of Roe 8.

CIMIC said the contract for the 5km extension was worth $330 million, with CPB to get $235 million of that total.

It said the work includes a freeway-to-freeway interchange at Kwinana Freeway, five interchanges/flyovers and a top-down construction bridge over part of what it called Roe Swamp.

The CIMIC statement did not refer to the proposed Roe Hwy/Stock Rd interchange.