Contracts, EOIs, Tenders

NATIONAL Webuild-Clough

Italian construction and civil engineering group Webuild has reached an agreement with the administrators of Clough Ltd for the acquisition of a set of assets comprising the Australian organisation and certain contracts, which include rail-related projects.

The agreement covers:

• the acquisition of a base perimeter comprising Clough’s Australian organisation (offices, brand, credentials, business references, senior management, office personnel, etc.) and its share of the Snowy 2.0 and Inland Rail contracts (with the related workforce), where Clough is Webuild’s partner, for a total transaction consideration of $17.6 million (plus the assumption of employee liabilities)

• the option to extend the transaction scope to include other projects if accretive conditions for the Group are guaranteed, consistently with its financial objectives, with additional consideration payable if exercised

• an exclusivity period up until December 21, 2022 for Webuild to define and agree the final contract relating to reached agreements.

In addition to obtaining the minority stakes in projects carried out with Clough, the transaction allows Webuild to bolster its local organisation, engineering expertise and workforce, instrumental to the execution of its order backlog and commercial plan.

Australia is currently Webuild’s second largest market after Italy with an order backlog of €8.9 billion, including projects for which Webuild is the preferred bidder, and a workforce of more than 1800 people.

This dynamic market has seen Webuild build iconic projects, such as the Perth Airport Line, previously known as the ForrestfieldAirport Link, which was opened on October 9. Construction investments in the Australian market are expected to reach more than €300 billion in the 2022-2025 period.

Clough, founded in Perth in 1919, is a major player in its sector and has a workforce of around 2500 employees. It provides sustainable and innovative solutions in the design, construction and maintenance of plants and infrastructures. Its landmark projects include the first high-rise in Perth, and the first major underground freeway tunnel in WA.

Keolis Downer

After five years leading Keolis Downer in Australia, David Franks will be stepping down as its chief executive officer, moving back to the UK in early January 2023.

During his time at the company, Franks led the growth of the business, adding new operations into the Keolis Downer portfolio with bus operations in Sydney and rail operations in Adelaide. He has also developed an ambitious strategy to be Australia’s leading provider of zero-emissions transport and has built a strong team to ensure the ongoing success of the company. with another significant project milestone, with Sydney Metro–Western Sydney Airport becoming the first rail infrastructure project in Australian history to commit to being certified carbon-neutral from the start of construction through to operation.

Franks will still be leading the negotiations with the South Australian Government over the future of the Metropolitan Rail Contract (Adelaide Metro), as well as working with Keolis Group pursuing development opportunities in Stockholm and Dublin.

Current Yarra Trams CEO Julien Dehornoy will replace Franks. After being appointed to the helm in 2020, he led the team operating the world’s largest tram network during the challenging COVID pandemic.

Yarra Trams’ current chief operating officer Carla Purcell has been appointed the new Yarra Trams CEO and will commence in the role in early 2023 after returning from parental leave.

All carbon emissions generated during construction and operation will be reduced and offset.

Parklife Metro chair Paul Oppenheim said the public-private partnership has brought together four world-class organisations to partner with Sydney Metro.

“Our collective international experience will ensure the latest and best technologies and innovations are applied to Sydney Metro –Western Sydney Airport,” he said.

“We will also deliver a host of benefits to the local economy during construction, sourcing from local businesses and creating local jobs.

“Another highlight is the sustainabilitylinked debt financing arranged for the project. The cost of debt financing is linked to the project achieving and maintaining bestpractice industry participation, Aboriginal and Torres Strait Islander representation and environmentally-sustainable outcomes.”

The project is expected to be completed and operational when Western Sydney International opens for passenger services.

The third and final major contract for the Sydney Metro-Western Sydney Airport project has been awarded to Parklife Metro, bringing metro services one step closer for Greater Western Sydney.

The consortium will deliver the Stations, Systems, Trains, Operations and Maintenance (SSTOM) tasks for the joint Australian and NSW government project.

The group comprises Plenary Origination, Webuild SpA, RATP Developpement SA, Siemens Mobility Ltd, Siemens Mobility GmbH, Siemens Project Ventures GmbH and Siemens Mobility Austria GmbH.

The SSTOM contract has the largest scope of any Sydney Metro contract awarded to date, and is the largest Public Private Partnership awarded in New South Wales. It includes 12 new metro trains, six new stations between St Marys and the new Aerotropolis, core rail systems and the stabling and maintenance facility to be built at Orchard Hills.

Parklife Metro will also operate and maintain the Sydney Metro-Western Sydney Airport line for 15 years after it becomes operational.

The Australian and NSW governments have the shared objective of having Sydney Metro-Western Sydney Airport operational when Western Sydney International is open for passenger services.

The awarding of the final contract coincides

Circular Quay

The NSW Government has announced a key partnership with a consortium to drive forward the next phase in the revitalisation of Australia’s waterfront to the world, Circular Quay.

It includes building new wharfs, upgrading the train station, delivering new places for people to eat, drink and shop, creating more active transport connections and improving public green spaces for people to enjoy.

Transport for NSW Eastern Harbour City director Julie Sundqvist announced that CQC Partners, a consortium that includes companies Lendlease Construction, Capella Capital and BESIX Watpac, has been chosen as the planning and design partner for this major Sydney renewal investment.

“CQC includes award-winning Australian and international designers, as well as First Nations advisors to ensure the plans have a strong cultural connection with Circular Quay’s rich history and heritage.

“We look forward to working with CQC to deliver new and improved public spaces, connections, infrastructure and buildings that will breathe fresh life into one of Australia’s most visited destinations and a critical transport interchange in the heart of Sydney.”

Detailed design, community consultation and statutory planning processes will commence in 2023.

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