Partners win highway operation deal in New South Wales, Australia

2376 Egis Projects and its partner 6191 Fulton Hogan Construction have won a major contract for the operation and maintenance of the WestConnex highway link in New South Wales Australia. The package was awarded by Sydney Motorway Corporation (SMC) to Fulton Hogan Egis O&M (FHEO&M). The partners hold equal 50% shares in the project. Egis has its share in the Australian project through its Australian subsidiary Egis Projects Asia Pacific.

The deal is of significance as the WestConnex link is Australia’s largest road infrastructure project. The construction work is being carried out by SMC, a private corporation, whose shareholders are the Minister for Roads, Maritime and Freight and the Treasurer of NSW. WestConnex will cut reduce travel times for commuters in the Sydney area and deliver more than US$14 billion ($A$20 billion) in economic benefits to New South Wales (NSW).

The project is being carried out in three stages, with the first for the widening of the existing M4 Motorway as well as a 5.5km tunnel extension. The second stage (WestConnex M5) includes building a new 9km  road tunnel, which will more than double capacity of the existing M5 East motorway corridor and provide a new  interchange, north of the city’s airport.  The third stage (WestConnex M4-M5 Link) will link stages 1 and 2 through a new road tunnel, connecting the M4 and M5 corridors.

The contract term for stages 1 and 2 is 10 years. Operation and maintenance will start in 2019. In addition, the contract comprises the operation and maintenance of the existing M5 East Motorway, which had been previously operated and maintained by Egis (as part of the BHEgis joint venture) from 2001 to 2011. M5 East is a 10km motorway with 4.5km of tunnels.