Gamuda JV wins RM1.8bil road upgrade contract in Australia

KUALA LUMPUR: Gamuda Bhd's Australian joint venture (JV) has secured an A$624 million (about RM1.8 billion) contract to upgrade two major roads in Western Sydney.

The contract for the Elizabeth Drive Upgrade-Mamre Road Upgrade Stage 2 project was awarded by Transport for New South Wales (TfNSW) to the Gamuda-BMD JV on Sept 21, Gamuda said in a Bursa Malaysia filing.

The JV comprises Gamuda Engineering Pty Ltd (GE Australia), an indirect wholly-owned unit of Gamuda, and Australian construction company BMD Constructions Pty Ltd, with each holding a 50 per cent interest.

Gamuda's effective share of the contract is A$312 million, equivalent to about RM908 million in expected revenue.

The design-and-construct contract involves upgrading 4.5 kilometres (km) of Elizabeth Drive and 3km of Mamre Road at Kemps Creek, including associated civil, structural and utility relocation works.

Work begins on Sept 21 and is targeted for completion in 2030.

The overall project is valued at about A$2 billion and is jointly funded by the Australian and New South Wales governments.

Gamuda said the contract would further strengthen its presence in Australia's road infrastructure sector and build on its existing portfolio in New South Wales.

"The award demonstrates TfNSW's high confidence in GE Australia's execution capabilities and significantly extends our road sector delivery credentials in Australia," it said.

GE Australia's existing road projects in New South Wales include the Coffs Harbour Bypass, M1 Pacific Motorway Extension from Black Hill to Tomago and Richmond Road M7 Upgrade.

Gamuda said prospects for the road sector remained strong, particularly in Western Sydney, where infrastructure investment is expected to be driven by population growth and the opening of the Western Sydney International Airport.

It expects the contract to contribute positively to the group's revenue and earnings over the duration of the project.