Fletcher Building's $1.3 billion win
New Zealand's biggest roading and tunnel contract is expected to boost business all round.
A Fletcher Building-led consortium has won a $1.3 billion contract for an Auckland roading and tunnel project.
The contract is for the Waterview connection tunnels and Great North Road interchange in Auckland. The project will involve two 2.4 km parallel tunnels under Avondale Heights, and connectivity improvements on the existing interchange.
In a statement to the NZX, Fletcher Building said the building project was expected to take approximately five years. The selection process has taken more than a year.
Fletcher Building subsidiary Fletcher Construction has a 32% share of the “Well Connected Consortium”. McConnell Dowell, Obayashi Corporation and three design companies, Beca, Parsons Brinkerhoff and Tonkin and Taylor taking the remaining 16%."
Fletcher Building yesterday reported a 4% gain in full-year net profit to $283 million.The company is also in line for another project, the Wiri Prison build in South Auckland, estimated to be worth $300 million.
Forsyth Barr analyst Rob Mercer said there was a shortage of major construction tenders in the market at the moment, making the contract win very significant for Fletcher Building’s construction division.
“It will also be a key source of demand for concrete, steel and aggregates products that can be supplied by Fletcher Building.”
The consortium will form an alliance with the New Zealand Transport Agency to deliver the project on behalf of the New Zealand Government. Waterview is part of the Western Ring Route, identified two years ago as one of the Government’s seven roads of national significance.
In a statement today, Transport Minister Steven Joyce said the Waterview connection will be the largest, most expensive and most complex roading project ever built in New Zealand.
"It will also contribute to better links for business and freight between key industrial hubs in the cities of Manukau, Auckland, Waitakere and North Shore.”
Construction is set to begin in November.
Charlotte Woodfield
Fri, 19 Aug 2011
Fri, 19 Aug 2011
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Fletcher Building's $1.3 billion win
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