The contract to design, construct, maintain and operate the River Murray to Broken Hill pipeline has been awarded.
Minister for Regional Water, Niall Blair, announced a consortium of John Holland, MPC Group and TRILITY won the contract for the game-changing piece of water infrastructure.
The successful tender was chosen from a shortlist of four potential providers to build the 270km pipeline between Wentworth and Broken Hill as part of the NSW Government’s investment in regional water security.
John Holland MPC Group Joint Venture will design and construct the River Murray to Broken Hill Pipeline at a total project cost of $467 million. While John Holland TRILITY Joint Venture will undertake the operations and maintenance of the pipeline for a fixed price 20-year contract sum of $107.3 million.
“The people of Broken Hill have just as much right to a safe and reliable supply of water as anyone else across the state and we’re determined to deliver it to them,” Mr Blair said.
It’s estimated the project will inject around $50 million into the Wentworth and Broken Hill economies, generating more than 150 local jobs, with a total workforce expected to reach 500 at its peak – importantly, the project also supports steel jobs in the Illawarra.
“The 270km pipeline will be constructed substantially from steel rolled in Australia, strengthening the NSW Government’s position as the single largest domestic purchaser of Australian steel,” Mr Blair said.
“The Government has carefully considered every possible option for securing a long-term water supply for Broken Hill, and today’s announcement shows we’re now getting on with the job. Releasing details of the project’s business case marks a commitment of this Government to provide timely information to the community on water projects going forward.”
WaterNSW CEO, David Harris, said they are proud to be leading such a significant regional project and building on the organisation’s successful reputation for project delivery.
“It is estimated that the local economies will benefit by up to $50 million,” Mr Harris said.
“The skills acquired by local subcontractors on a project of this scale will also expand those firms’ capacity to engage in large-scale capital works in the future.
“The contractor is also expected to invest around $3 million in training, meaning that locals who work on this project will have transferable experience and skills for future work.”
NSW Treasurer, Dominic Perrottet, said the announcement was further evidence of the Government reinvesting the state’s economic success back into its communities.
“This is an investment made possible by our asset recycling strategy and is the centerpiece of the $1 billion Safe and Secure Water fund, which was announced in the 2017-18 NSW Budget,” Mr Perrottet said.
“The project will be managed by WaterNSW, which has a strong track record in key water infrastructure projects, and will drive its successful delivery.
“The good news for the community is that detailed planning and design works will commence immediately with construction to start next year.”
Detailed planning and design works will commence immediately with construction to start in January 2018. The pipeline will be completed and ready for water by December 2018.