Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Leighton-led WGP to build, manage Transmission Gully

Leighton-led Wellington Gateway Partnership wins Transmission Gully contract

By Suze Metherell

July 29 (BusinessDesk) - The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington.

The consortium, made up of Leighton Contractors, HEB Construction, InfraRed Infrastructure General Partner, the Bank of Tokyo-Mitsubishi UFH and the Accident Compensation Corp, won the bid to build the 27 kilometre project with the New Zealand Transport Agency, and New Zealand's first public-private partnership for a state highway. The contract will see WGP design, build and finance the project, as well as operate and maintain the road for 25 years after the expected five-year build finishes in 2020.

The bidders put a $1 billion price tag on the project, while NZTA estimates its net cost will be $850 million, which it says is $25 million less than if it had been a conventional procurement. When the project is finished and open for use, NZTA will make annual cash payments of about $125 million over the life of 25-year contract, the roading agency said in a statement.

"By progressing the project as a PPP we have achieved a good value result and work will get underway on the project in the coming months," NZTA chief executive Geoff Dangerfield said. “Not only do we have certainty that the project will be built to a strict deadline that will see it opening in 2020, but the PPP contract also requires that the project is designed, constructed, operated and maintained to achieve a high standard of performance in the areas of safety, journey times, reliability, and customer satisfaction.”

Transmission Gully is part of the 110km Wellington Northern Corridor Road of National Significance, connecting Levin to Wellington. The challengingly steep and geologically complex route uses a road corridor first identified during the Second World War, and has been the subject of local and central government tension for decades.

Leighton will be the special purpose vehicle manager for the project and also holds the operations and maintenance sub contract, while also acting as an equity investor with InfraRed and ACC. The design and construction is a joint venture with Auckland-based HEB Construction, with Leighton taking a majority role, WGP said. At its peak the project is expected to employ 700 people.

"The WGP has integrated local and international experience to successfully address the challenges of constructing 27 kilometres of motorway through steep terrain including 28 bridges," HEB Construction chief executive Derrick Adams said.

The WGP is chaired by New Zealand Post chief executive Brian Roche.

The rival bidder short-listed for the Transmission Gully project was Positive Connection, whose members were Fulton Hogan, Fletcher Building, Macquarie Group and the Morrison & Co-managed PIP Fund.

Shares of Leighton fell 1.3 percent to A$21.82 on the ASX, and have gained 37 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news