NT government will undertake new ‘due diligence’ after shiplift project gets lifeline

Darwin’s stalled shiplift project has been thrown a lifeline after the project hit choppy waters late last year. Read what’s happened.

The $515m Darwin shiplift project has been thrown a lifeline with Italian construction giant Webuild taking over joint-venture partner Clough in a multi-billion dollar deal.

A statement released by Webuild announced the company will take over Clough’s assets including offices, trademarks, senior management and office personnel valued at approximately $6bn.

The takeover includes nine projects in Australia and Papua New Guinea including the long-awaited Darwin ship lift.

The NT government will now conduct a due diligence process with the new project partner, but the takeover clears the way for the project to go ahead after it was thrown into turmoil late last year when Clough collapsed and Deloitte was appointed voluntary administrator.

The Territory government announced in July 2022 it had signed Clough-BMD as the preferred joint venture contractor to design and build the facility, despite the estimated project cost soaring from $400m to $515m.

Artist impression of the new shiplift at East Arm. Picture: Supplied

But contract negotiations stalled when Clough was placed in voluntary administration in December, with the NT government expressing confidence the project would go ahead.

Under the new arrangements, Webuild has agreed to take over nine projects being undertaken by Perth-based Clough Limited including the Snowy 2.0 hydro project in New South Wales and the Gowrie-Kagaru section of the inland rail project in Queensland.

Infrastructure Minister Eva Lawler said the government was advised late last week the Clough-Webuild deal had been finalised.

“Government will now undertake due diligence on the arrangements,” Ms Lawler said.

“The shiplift team will continue to progress with final environmental approval activities in the meantime.”

Webuild’s media statement lists the Darwin shiplift as ninth out of nine priority projects, with Clough designated preferred bidder status as of December 31.

Infrastructure and Planning Minister Eva Lawler. Picture: (A)manda Parkinson

“The integration of Webuild and Clough, that guarantees the continuity of Clough’s projects and ongoing employment for 1100 Clough employees, will create a Group that ranks among the largest and oldest in Australia,” Webuild said in a statement.

“The current projects included in the transaction are among the most important infrastructure projects in Australia and Papua New Guinea, and the agreement will allow the delivery for all levels of government, local communities and businesses involved.

“The transaction also ensures subcontractors and suppliers contracted to projects within the perimeter will be paid to complete their contracted works.”

Webuild’s statement listed the takeover price at $35.9m.

Master Builders national media and marketing manager Ben Carter.

In the NT News in December, NT Master Builders chief executive Ben Carter urged the shiplift project to go ahead as a matter of priority for government.

“We need to face up to the fact that we are in competition with the rest of Australia for billions in defence, transport and social infrastructure,” Mr Carter said.

“If the shiplift project is not built in Darwin it will be built somewhere outside the Territory.”

Webuild formed in 2020 following the merger of two existing Italian construction companies and is one of the world’s largest construction companies. Other preferred bidder projects picked-up by Webuild are the Ceres urea plant, Mt Keith mine and Woodman Point water treatment plant in Western Australia.