Decmil wins $106m contract extension

Engineering and construction contractor Decmil Group has been awarded a $106 million extension on its work at the Manus Island offshore processing facility in Papua New Guinea.

The contract, awarded by the Department of Immigration and Border Protection, will be a continuation from the original $147 million contract won by Decmil in December last year.

The Manus Island offshore processing centre is an asylum detention centre located on the PNG navy base Lombrum.

The original contract for the project required Decmil to build accommodation facilities, central dining and recreational facilities, operational and logistics facilities and supporting engineering facilities and services.

Under the contract extension, Decmil will move the project from the planning phase to the delivery phase with the construction of warehouse and storage facilities, upgrades and repairs to roads, as well as repairs to the existing water and sewerage treatment plants, improvements to public roads, and the inclusion of surgery capability in the medical facility.

“The scope of the work on the project, which now includes broad based civil infrastructure, will allow Decmil to demonstrate our expertise in working in remote locations and our capability to deliver a diverse range of construction and engineering services to the government,” Decmil chief executive officer Scott Criddle said.

Earlier in the week, Decmil announced it had lifted its full-year profit by 10 per cent, flagging further earnings through its diversification into civil construction projects.

The company has won a series of contracts from mining companies in the last six months, including a $26 million contract with Rio Tinto for its Cape Lambert Port B project, a $34 million award for major road work with Atlas Iron, and was shortlisted to design and build a pedestrian bridge linked to the new Perth Stadium.

Decmil’s share price rose by 2.3 per cent to $1.98 per share at 12:30pm.