Three consortia approved for USD 6bn North East Link bids

30 August 2019 - 12:00 am UTC

Three consortia that lodged expressions of interest in the North East Link motorway PPP have advanced to the bid stage, according to sources familiar with the matter.


The government is likely to name the shortlist for the AUD 7bn-AUD 9bn (USD 4.7bn-USD 6bn) project in the next couple of weeks and issue an RFP in September, according to a spokesperson for the North East Link Authority, the government agency overseeing the project.


She did not identify the names on the shortlist.


According to numerous sources, the bid groups include: Macquarie Capital, CIMIC and its subsidiaries, including its financier Pacific Partnerships and Samsung C&T; Plenary, Acciona and John Holland; and Capella Capital, China State Construction Engineering, Salini Impregilo, GS E&C and John Laing.


Fluor troubles

US infrastructure builder Fluor, which was in the Macquarie group, said on 1 August that it is pulling out of fixed price government infrastructure contracts after reporting a USD 555m loss for 2Q 2019.


This included USD 55m of “forecast revisions on several fixed-price infrastructure projects”.


As well as the North East Link, Fluor is withdrawing from a consortium including Macquarie Capital and Acciona that had formed to bid for the AUD 3.5bn Inland Rail PPP in Queensland, according to five sources familiar.


However, two of the sources said this group still had another contractor on board and the consortium will go ahead with its bid.


A spokesperson for the  Australian Rail Track Corporation – which is overseeing construction of Inland Rail – said shortlisting for the Inland Rail PPP is being done now and the request for proposal will be released in the fourth quarter of this ear.


As reported, bid groups for several PPP deals in the past year in Australia have been impacted by construction companies dealing with losses or that are no longer prepared to bid on fixed price deals.


A spokesperson for Fluor declined to comment.


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