Leighton venture wins $1bn HK rail contract

A LEIGHTON venture has won a $US929 million ($1.13bn) contract for the construction of a railway station and works on a tunnel in Hong Kong.

A LEIGHTON Holdings joint venture has been awarded a contract by MTR Corporation for the construction of an underground railway station and works on a tunnel in Hong Kong.

The value of the contract awarded to the joint venture between subsidiary Leighton Asia and China State Construction Engineering (Hong Kong) is $929 million. Leighton’s share of the revenue is 51 per cent.

The works, which will commence in January 2015, involve the construction of an underground station and 300 meters of tunnel. The station will serve Hong Kong’s Convention Centre and the North Wanchai area, completing the new railway link connecting New Territories and north Hong Kong.

“Securing th e largest civil works contract within this project is an excellent achievement and is reflective of Leighton’s experience in delivering transport projects of this size in busy urban areas,” said Leighton Holdings chief executive Marcellino Fernandez Verdes.

“Demand from growing opulations and the need to address infrastructure deficits are resulting in continued growth in infrastructure investment in Asia,” he said.

He said Leighton is “positioned to be a strong contender” for future work in Hong Kong with the government there outlining further plans for expansion of the public transport network.

The deal comes just weeks after Leighton signed off on a deal to sell its contracting division John Holland to China Communications Construction Company.

Leighton placed various parts of its business up for sale earlier this year after its Spanish-­controlled parent Hochtief launched a proportional takeover bid for the company.

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