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Mon December 04 2023

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Hochtief lands $520m of Australian early works packages

2 Sep 19 Hochtief’s Australian subsidiary CPB Contractors has won two contracts that will earn it almost AU$520m (£290m) in revenue.

The contracts cover earthworks in joint venture with Lendlease for Sydney’s new airport and early works for the biggest road project in Victoria’s history. In a separate announcement, a team that includes CPB has also been shortlisted for the main contract of the AU$7-9bn road project.

CPB Contractors and Lendlease will deliver the bulk earthworks for the construction of Western Sydney International (Nancy-Bird Walton) Airport. Prime minister Scott Morrison said that work under the contract would move around 25 million cubic metres of earth on the site to support construction of the major elements of the airport, including the runway and terminal.

The work will generate revenue of approximately AU$323 million (£179m) to CPB Contractors. It is the second project awarded by Western Sydney Airport to the joint venture, following award of an early earthworks package in July 2018. Bulk earthworks include overall topographical and drainage design for the entire airport precinct as well as detailed design and construction of earthworks and drainage for the area. Work will start later this year and is scheduled to be completed in 2022.

CPB Contractors has also been picked by the Victorian government to deliver the early works package for Melbourne’s North East Link, the biggest road transport project in Victoria’s history. The contract will generate revenue to CPB Contractors of up to approximately AU$195m. The AU$15.8bn North East Link will connect the M80 Ring Road with an upgraded Eastern Freeway and provide an improved road connection.

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CPB Contractors managing director Juan Santamaria said: “This is a key missing link in Victoria’s freeway network. CPB Contractors is committed to leveraging our extensive roads and major project experience to deliver this work efficiently and to the highest safety standards.”

The Early Works package will involve CPB Contractors performing services in two phases of planning and delivery. Most of the work involves utility services, carried out under a managing contractor arrangement that the company said will generate a favourable risk and return profile consistent with the strategy of CPB’s immediate parent company, Cimic. Works include the design, development and removal, relocation and/or protection of utility services including 220 KV transmission towers, other electrical assets, telecommunication assets, water and sewerage assets, and drainage and gas pipelines.

Construction on the early works package is scheduled to start in 2020, subject to planning approval, and is set to be completed in 2021.

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