Already hit with delays and disappointment, Darwin’s ship lift hits another snag

A major government-backed infrastructure project is in strife after one of the builders went into voluntary administration. Find out more.

A key Territory infrastructure project is in doubt after the collapse of a major interstate construction company.

Western Australian builder Clough has been placed into voluntary administration.

Deloitte has been appointed administrator and is managing Clough’s affairs.

Clough was a joint-venture partner with BMD in building the shiplift.

The Territory government said it was monitoring the corporate collapse.

“The Darwin Ship Lift is a cornerstone marine infrastructure investment which will support hundreds of jobs – we are 100 per cent committed to delivering this project,” a spokeswoman said.

“This is a joint venture, and we are closely monitoring the situation.”

A statement from Deloitte said it would undertake “an urgent assessment” of Clough’s finances.

Voluntary administrator Sal Algeri said Clough has 1250 Australia-based employees and a similar number internationally at sites in Papua New Guinea, United Kingdom and United States.

A computer mock up of the planned Darwin ship Lift at East Arm. Picture: Glenn Campbell

“With our appointment, over the next two to three days, we will carry out an urgent assessment of the financial position of the Clough Group companies, with a view to sourcing immediate interim funding to be able to continue work on as many projects as possible as quickly as possible,” Mr Algeri said.

“An accelerated sale and recapitalisation process will also commence.”

The shiplift is not listed in Deloitte’s statement as a key Clough project.

This include the Snowy Hydro 2.0 and Energy Connect projects in New South Wales as well as projects in WA and PNG.

Voluntary administrator Jason Tracy said the Clough administration was “unsettling”.

“We understand this news will be unsettling, disruptive and stressful for stakeholders, including employees, customers, joint venture partners, contractors and suppliers,” he said.

“We ask that all stakeholders be patient while we work through options and begin engaging with employees, unions, principals, subcontractors, joint venture partners, regulators and others as soon as practicable.

“Clough Group has a long history both in Western Australia and nationally, and involvement in a diverse range of important projects.

Chief Minister Natasha Files , Infrastructure Commissioner for the NT Louise McCormick and Minister Eva Lawler at the site of the planned ship Lift at East Arm. Picture: Glenn Campbell

“We will be pursuing all options to find a new owner to take the business forward.”

The Darwin shiplift was first proposed in 2014 and after years of delays and cost blowouts, the Territory government announced in July it had signed-off on a $515m joint-venture agreement with Clough and BMD.

The cost had blown-out from earlier projections from initial forecasts of about $400m.

In the Treasurer’s mid-year response the shiplift project was specifically identified as contributing to a budget blowout in the forward years.