Road Maintenance JVs Bag $1.4 Billion in Contracts

Tuesday, November 5th, 2013
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Two big road construction joint ventures operating in Australia have bagged maintenance contracts worth $1.4 billion in Sydney.

On Monday, New South Wales Roads and Ports Minister Duncan Gay announced that the state’s Roads and Maritime Services has awarded the Stewardship Maintenance Contract covering Sydney’s South Zone road network to the Leighton Boral Amey Joint Venture (LBAJV) involving Leighton Holdings subsidiary Leighton Contractors Pty Ltd, Boral subsidiary Boral Construction Materials and UK engineering and infrastructure services provider Amey.

A similar contract covering the city’s West Zone, meanwhile, has been awarded to the DownerMouchel Joint Venture (DMJV) between Sydney-based Downer EDI and UK based infrastructure services group Mouchel.

Set to commence in March next year, both contracts will run for seven years (with the option of extension for a further three years) and will be worth around $100 million per annum.

They involve planning, project management, and maintenance on roads, bridges and tunnels including resurfacing work and asset upgrades – the former contract covering a network area involving 2,000 kilometres of roads, 237 bridges and eight tunnels and stretching from Sydney’s metropolitan district to the Sutherland National Park; the latter stretching over an area spanning 2,200 lane kilometres and including an option for related services on the North Zone road network (annual value: $40 million.)

While JV partners across both ventures bring experience in engineering and asset management to the table, Boral’s role in the former is unique in that it will supply asphalt surfacing services and associated construction materials, including pavement solutions.

Gay says both joint ventures offer a blend of local and international experience and their participation will benefit motorists across the city and metropolitan area.

“By engaging the private sector to deliver road maintenance, motorists will benefit from improved travel conditions including road quality and reduced traffic disruption” he said.

The latest contracts follow moves by the Queensland government last week to hand out $280 million in road maintenance contracts to three joint ventures including both LBVJV and DMJV covering areas across Brisbane, the Gold Coast and the Sunshine Coast.

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