Deal signed for multi-billion-dollar Australian tunnel
December 14, 2017 – Contractual close has been reached for the design and construction of the West Gate Tunnel in Victoria, Australia.
Transurban and the state government announced in April that the preferred bidder was a 50:50 joint venture of Hochtief’s CPB Contractors and John Holland, which is owned by China Communications Construction Company International.
The design and construct contract will generate revenue to each contractor of approximately US$2.49bn.
The West Gate Tunnel project, one of Victoria’s largest ever urban road projects, will deliver an alternative to the West Gate Bridge. Work includes widening the West Gate Freeway from eight lanes to 12 between the M80 Ring Road and Williamstown Road; a 2.8km eastbound tunnel and 4km westbound tunnel under Yarraville; a new bridge over the Maribyrnong River; an elevated road; and new cycling and pedestrian paths.
John Holland chief executive officer Joe Barr said that the project would provide important benefits to the people of Melbourne. “In providing an alternative route to the West Gate Bridge and direct access to the port, the project will significantly decrease traffic congestion, improve productivity, remove numerous trucks from local roads and reduce travel times for motorists,” he said.
CPB Contractors managing director Juan Santamaria said: “We are focused on ensuring opportunities for local workers, and providing a value for money procurement programme that includes Indigenous business and social enterprises to achieve broader community benefits.”
Major construction work is expected to start in early 2018 with the project scheduled to open to traffic in 2022.