NBN Co inks Vic, WA construction deals

Summary:The National Broadband Network Company (NBN Co) has dished out $307 million in construction contracts to Lend Lease, Service Stream and Transfield services for the roll-out of the fibre network in Victoria and Western Australia.

The National Broadband Network Company (NBN Co) has dished out $307 million in construction contracts to Lend Lease, Service Stream and Transfield services for the roll-out of the fibre network in Victoria and Western Australia.

Lend Lease announced to the Australian Stock Exchange that its joint venture company with Service Stream, Syntheo, has secured a $174 million construction contract to roll out the NBN in Western Australia over the next two years. The deal has an option to be expanded for an additional two years, with a total potential value of the deal put at $484 million for the joint venture company.

At the same time, Transfield Services today also announced that it had picked up a $133 million contract with NBN Co for construction work in Victoria over the next two years. This contract, too, could be extended by another two years, and could be worth up to $395 million for the company. Transfield Services has already had experience with NBN roll-out construction, having completed the Kiama first release site construction in June 2011.

Transfield CEO Peter Goode welcomed the deal signing.

"In addition to our technical experience, Transfield Services can offer NBN Co a uniquely integrated, knowledge-based service that includes our in-house design, aerial services and project management capabilities."

Construction in Victoria is scheduled to begin in October, and Lend Lease said WA construction would begin once the NBN Co board had signed off on the deal.

NBN Co had originally been looking to award a national construction tender; however, it suspended tender negotiations in April, citing that it was displeased with the offers made by the companies vying for the top contract. In June, the company awarded a $1.1 billion contract to Siemens-Theiss joint venture company Silcar for construction in Queensland, New South Wales and the ACT.

Contracts for South Australia and the Northern Territory have not been awarded at this stage.

NBN Co has yet to comment on the announcement; however, a conference is scheduled with NBN Co CEO Mike Quigley and head of construction Dan Flemming at 1pm.

Topics: NBN, Broadband

About

Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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