Decmil Group Limited announced a new contract award and provide a general update to the market on the Company’s activities and prospects.
Extension of NZ Corrections Contract
Decmil announced that its New Zealand subsidiary Decmil Construction NZ Limited has been awarded an extension of its contract with the New Zealand Department of Corrections.
The contract extension, valued at ~NZ$125 million, relates to the design, procurement and onsite installation of rapidly deployable modular prison cells across a number of existing prison sites in New Zealand.
The contract extension follows from the award of a NZ$60 million contract across two sites in August 2017.
The contract extension will further expand Decmil’s business in New Zealand which is active in the Education, Corrections, Defence and commercial building sectors.
Transport Infrastructure Projects
The recent budgets announced by State and Federal Government has presented a number of opportunities for Decmil including the following transport infrastructure projects that the Company has bid or is targeting in H1FY19:
- Mordialloc Freeway (VicRoads): the Mordialloc freeway is a proposed new 9km freeway linking the end of the Mornington Peninsula Freeway at Springvale Road to the Dingley Bypass. Following an Expression of Interest process Decmil, with its JV partner McConnell Dowell, has been shortlisted to one of two bidders for the tender stage to design and construct the Mordialloc Bypass;
- M80 Ring Road Upgrade (VicRoads): the M80 Ring Road Upgrade relates to the design and construction of the remaining northern sections of the M80 Ring Road. Decmil (ASX:DCG), with its JV partner BMD, is one of two bidders that has submitted an Expression of Interest;
- Oxley Highway, Gunnedah (NSW RMS): Decmil is a shortlisted contractor for the Oxley Highway project in Gunnedah. The project relates to the design and construction of a bridge over an existing rail line; and
- Drysdale Bypass (VicRoads): Decmil is a shortlisted contractor for the design and construction of the Drysdale Bypass from Grubb Road to Whitcombes Road in Victoria.
Update on Sunraysia Solar PV Project
In December 2017, Decmil announced that under an MOU it had been appointed as preferred contractor to design and construct a 250MW solar PV project in Balranald, NSW (Sunraysia Project). Decmil continues to work with the developer of the Sunraysia Project, Maoneng Australia, and has progressed with negotiation of the EPC contract. Notice to proceed is however still subject to the developer achieving financial close on the project.
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