Foreign company Acciona chosen over SA firms for $120m major road upgrade contract

A huge overseas company has been awarded the contract for the $120m Majors Rd upgrade – but the government insists most of the project’s workers will be from SA.

A foreign multinational company has been awarded the contract to design and construct a $120m major road upgrade project in South Australia.

Spanish-owned Acciona Construction Australia will helm the joint federal and state government funded Majors Rd Interchange Project which will see the construction of new on/off ramps for the Southern Expressway at Majors Rd.

Infrastructure Minister Tom Koutsantonis defended the decision to give the contract to a foreign company and said a majority of the workers on the project will be South Australian.

“Just because of who’s their parent company it doesn’t mean local South Australians won’t be employed,” Mr Koutsantonis said.

“We have a policy that over 90 per cent of all the hours worked on this project will come from local workers.

“When they tender, their local procurement processes are something we assess.

Mr Koutsantonis said the government “took the best offer” they received.

“We’ve got to protect taxpayers as well.”

Concept designs for the new $120m Majors Rd interchange.

He said a focus for the project is providing jobs for South Australians.

“What we’re after here is local jobs.”

The government took “the ability to deliver on time and on budget” into consideration when selecting Acciona for the project.

Mr Koutsantonis said that in choosing Acciona, the government was “bringing expertise” to the state.

“When you’re training locals and working with people with international expertise our ability to do more projects grows.”

But Opposition Infrastructure spokesman Vincent Tarzia slammed the decision to award the contract to a foreign company.

“Peter Malinauskas loves to bark about how his Labor Party stands up to multinationals and

their overseas profits,” Mr Tarzia said.

“But at the first opportunity to back in his mantra, he folds and hands out a $120m contract to a foreign company.”

Federal MPs Amanda Rishworth, Infrastructure Minister Tom Koutsantonis, and Member for Boothby Louise Miller-Frost. Picture: Keryn Stevens

He also expressed concerns about a potential cost blowout for the project with “escalating building costs impacting projects around the world”.

“We hold serious doubts Majors Rd can be completed for $120m,” Mr Tarzia said.

Federal Member for Kingston Amanda Rishworth said the Majors Rd project would “benefit drivers of more than 13,000 vehicles” who use the road every day.

“The project will also benefit the 74,000 vehicles using the Southern Expressway between Darlington and the Reynella Interchange each day.”

The funding for the project is split equally between the state and federal governments, each committing $60m for the upgrade.

Construction on the Majors Rd Interchange project is expected to commence in the last quarter of 2023 and with completion scheduled for the end of 2025.