CIMIC confirms preparing bids for road, rail projects

05 February 2019 - 12:00 am UTC

CIMIC has named the AUD 8bn (USD 5.8bn) North East Link PPP, the AUD 3bn Inland Rail PPP and the first stage of the AUD 4bn-AUD 6bn Auckland Light Rail project as bid prospects in its latest annual results.

The ASX-listed construction and finance company included these projects in its customary list of deals it is either “bidding on or has been shortlisted for” in its annual report released after the market close on Tuesday (5 February).

The three projects are yet to start bid processes.

As reported, it is understood CIMIC’s Pacific Partnerships is working with John Holland on a consortium to bid for Inland Rail.

The company also named the first stage of the AUD 2.2bn to AUD 2.6bn F6 motorway, which will connect WestConnex to Sydney’s southern suburbs, as a project it is targeting. The NSW government promised to fully fund the road itself in the June 2018 budget.

The government completed the Environmental Impact Statement on this in November 2018.

However, the state Labor Opposition has said it will scrap the road in favour of more public transport if it wins power at the March state election.

Subsidiaries of CIMIC are also bidding on numerous other projects across the region including both main contracts for Cross River Rail in Brisbane and Suburban Roads PPP in Melbourne.

It was also shortlisted in August with CAF for the Metronet rolling stock contract in Perth to supply 246 new C-series rail cars.

The company said overall it had AUD 36.7bn of work-in-hand and a pipeline of projects to be “bid and/or awarded” worth about AUD 130bn in 2019.

It reported group revenue for the year to 31 December 2018 of AUD 17.3bn, up 7% from AUD 16.1bn in 2017.

Net profit after tax was AUD 781m, up 11% from AUD 702.1m in 2017.

CIMIC is 72% owned by Hochtief Australia, which is majority owned by Spanish construction giant ACS.

 

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