The state government has attracted just two bidders, both headed by Spanish-owned companies, for its signature Metronet rail projects, despite altering its contracting strategy to boost market interest.
The state government has attracted just two bidders, both headed by Spanish-owned companies, for its signature Metronet rail projects, despite altering its contracting strategy to boost market interest.
Transport Minister Rita Saffioti announced two short-listed consortia over the weekend for construction of the Thornlie-Cockburn Link (TCL) and Yanchep Rail Extension (YRE), which have a combined budget of $1.056 billion.
METROconnex is led by Melbourne-based Coleman Rail, with a 40 per cent stake, and includes local partners Clough (40 per cent) and Georgiou Group (20 per cent).
Aurecon and WSP are the consortium’s design consultants.
The competing consortium is the NEWest Alliance, comprising CPB Contractors and ASX-listed Downer.
They will now be required to provide a detailed bid, before a contract to the successful bidder is awarded in late 2019.
Despite the late contract award, the minister’s statement said construction was expected to begin this year.
In September last year, the government said it was planning to announce the shortlist in 2018 with a view to awarding the contract in mid-2019.
While the lead members of each consortium are based in Australia, they are part of larger international companies.
Coleman Rail is part of Geotech Group, which was bought by Spain’s ACCIONA in March 2017.
Coleman has recently made inroads into the Western Australian market, winning an $8.4 million contract to rebuild the Ashton Avenue bridge in Claremont and an $11 million Main Roads contract in joint venture with local firm MACA.
Its parent company has worked on several big projects, including the Mundaring water treatment plant and the $700 million Avertas Energy waste treatment plant currently under construction in Kwinana.
ACCIONA was also one of three bidders for the Forrestfield rail link, awarded to a consortium headed by Italy's Salini Impregilo.
CPB is owned by ASX-listed CIMIC Group, which is controlled by Spanish construction giant Grupo ACS.
The state government decided last year to bundle the two rail projects under one package, on the basis this would deliver better value for money.
The challenge for the WA government is that many contractors are focused on much larger infrastructure projects under construction on the east coast.
The contracting market is also being heated by the growing number of mining construction projects in WA, especially in the iron ore and lithium sectors.
The 17.5-kilometre TCL project will link the Thornlie and Cockburn Central train stations, and build two new stations at Ranford Road and Nicholson Road.
The YRE is a 14.5km project to extend the Joondalup Line from Butler to Yanchep, with new stations at Alkimos, Eglinton and Yanchep.
The state government expects more than 3,000 jobs will be created over the two projects.
