$15.4bn Torrens to Darlington project bidders spearheaded by John Holland and CPB
Key background details about the bidders for the $15.4bn Torrens to Darlington have triggered criticism.
SA News
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The $15.4bn contract for South Rd tunnels will be handed to a consortium spearheaded by a Chinese state-owned firm or another waging a long-running legal battle with the state government.
John Holland, a subsidiary of China Communications Construction Company, heads one consortium and the other is headed by CPB Contractors, which is embroiled in legal action over the Royal Adelaide Hospital building project.
Two separate tunnels will be constructed, with a combined distance of 10.5km, in the River Torrens to Darlington (T2D) project, in the crucial final link the 78km North-South Corridor from Gawler to Old Noarlunga.
Industry sources had been expecting the successful T2D bidder announcement within weeks, given the original schedule was mid-2024, but Transport Minister Tom Koutsantonis last August set that at the third quarter of 2024.
Opposition transport spokesman Vincent Tarzia warned handing the contract to a foreign company would breach a Labor election commitment to prioritise South Australian builders and suppliers.
“We saw it with the $120m Majors Road contract going to a Spanish multinational and now we are hearing the same thing may happen with the Torrens to Darlington project,” he said.
But Mr Koutsantonis accused the previous Liberal government of jeopardising the project with “their shoddy planning”, saying properties were being acquired “to do this project properly, first time”.
“South Australian companies and contractors will benefit greatly from the construction of the biggest infrastructure project this state has ever seen, and South Australians will continue to benefit for generations to come,” he said.
“If Mr Tarzia and the Liberals want to carp from the sidelines, that is the prerogative of the party that has contributed practically nothing whatsoever to realising a non-stop north-south corridor.”
Responding to Advertiser questions, an Infrastructure and Transport Department spokesman confirmed CPB and John Holland were heading the competing construction consortia.
But he declined comment on questions about the influence on contract assessment of John Holland’s Chinese parent company or CPB’s legal action.
“The Department is not able to comment on deliberations being undertaken as part of the RFP (Request for Proposal) process, which is an extensive and robust process undertaken under strict probity and confidentiality guidelines,” he said.
But it is understood ongoing legal action by either a bidder or the state government is not considered as part of the assessment process for separate contracts, because both sides have the right to take action during or after construction projects.
A John Holland spokesman said the firm could not comment during the assessment process while CPB did not respond to The Advertiser.
CPB is an Australia and New Zealand-based company, with corporate offices in Sydney, that has undertaken projects such as the Torrens to Torrens project and the Main South Rd and Victor Harbor Rd duplications.
The two consortia are:
CPB Contractors, ACCIONA Construction Australia; Designer: Aurecon Australasia; Arup Australia Projects; Maintainer: Tunnel Network Services, trading as Egis.
John Holland, Bouygues Construction Australia; Designer: Arcadis Australia Pacific, Jacobs Group; Maintainer: Ventia Australia Pty Ltd.