Aus & NZ: CIMIC confirms bidding on Melbourne roads PPPs

18 July 2018 - 12:00 am UTC

CIMIC said it is one of those that will bid on Melbourne’s two arterial roads PPPs in its half year results released on Wednesday afternoon (18 July).

The ASX-listed contractor named the AUD 2.2bn (USD 1.63bn) Suburban Roads Upgrade among major projects it is “currently bidding”.

Expressions of interest are due by 15 August on the South Eastern Roads Upgrade and the Northern Roads Upgrade – two PPPs covering the upgrade and maintenance of 14 arterial roads in Melbourne’s outer suburbs over a 20 year period.

Bids can be made on one or both of the projects.

CIMIC led the Western Roads Improvement Network consortium that bid on the Western Roads Upgrade PPP last year. The Netflow consortium led by Plenary and Ferrovial won that contract.

CIMIC said globally there are about AUD 80bn of tenders relevant to the company to be “bid and/or” awarded in 2018, with another AUD 330bn in 2019, AUD 100bn of which are PPPs.

The company’s CPB Contractors is in one of two consortia shortlisted by the NSW Roads and Maritime Service in May to build the WestConnex Rozelle Interchange and Iron Cove Link. This will link to the new M4-M5 tunnel. The consortia shortlisted are: JCL Joint Venture (John Holland, CPB Contractors and Lend Lease) and SCS Joint Venture (Salini Impregilo, Clough Projects and Samsung C&T).

The construction giant reported profit after tax (NPAT) of AUD 363m for the half year to 30 June, up 12.4% YoY from AUD 322.9m for the first six months of 2017.

Excluding joint ventures and associates, revenue rose 10.5% to AUD 6.94bn from AUD 6.28bn in the same period.

The company said it was maintaining NPAT guidance of between AUD 720m and AUD 780m for its 2018 annual results.