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CIMIC company's JV wins A$1.6b Hong Kong project

A JOINT venture of CIMIC Group company's Leighton Contractors (Asia) Limited (Leighton Asia) has been awarded an A$1.58 billion (S$1.6 billion) contract by the government of Hong Kong's Special Administrative Region for the construction of Tseung Kwan O-Lam Tin Tunnel.

Leighton Asia won the contract through a joint venture with China State Construction Engineering (Hong Kong) Limited.

The Leighton Asia-led joint venture project, of which Leighton Asia has a 51 per cent share, is expected to generate revenue to CIMIC of approximately A$805 million. Tseung Kwan O-Lam Tin Tunnel will meet the traffic demand arising from the anticipated population increase in Tseung Kwan O through the future development of the district.

CIMIC Group executive chairman and chief executive officer Marcelino Fernández Verdes said: "Delivering large infrastructure projects in busy urban areas is a core capability for Leighton Asia. We value the opportunity to contribute our civil engineering capabilities to accommodate future growth through the expansion of infrastructure in such a fast growing city."

Leighton Asia managing director Manuel Alvarez Munoz said: "Leighton Asia has developed strong working relationships with both our JV partner, China State, and with our client, the Hong Kong government. Through continued delivery of infrastructure that enhances Hong Kong's transport systems, we are in a good position for future work."

The scope of works for the project includes the construction of a 2.2km dual two-lane highway tunnel together with associated slip roads, branch tunnels, viaducts and tunnel portal facilities. The works also involve the delivery of two ventilation buildings and an administration building, as well as implementation of all associated building and supporting works.

Works will commence in July 2016 and take about five years to complete.