news NBN Co has signed landmark contracts with two construction firms which will fuel the rollout of the fledgling fibre network in Victoria and Western Australia over the next several years.
According to a statement issued by the company this afternoon, the first deal was inked with Transfield Services to cover Victoria. It will be worth $133 million over the next two years, although that figure will extend up to $395 million if the contract is extended for a further two years. The Victorian contract will see Transfield working on early stage rollout zones in locations in the state such as South Morang, Bacchus Marsh and Brunswick, where there is already an early stage NBN rollout zone.
The second contract has been signed with construction firm Syntheo, which is a joint venture between Lend Lease and Service Stream. This deal, covering Western Australia, will be worth about $174 million over two years, and could extend to a maximum value of $484 million if it is extended for a further two years. The WA contract will see construction work kick off in Geraldton, Victoria Park and Mandurah.
The new contracts, along with previous arrangement signed with fellow construction firm Silcar, which has started aiding NBN Co in rolling out the NBN in Queensland, New South Wales and the ACT, will bring the total percentage of construction work planned over the next two years which NBN Co has contracted out to 60 percent.
“Signing these two agreements to expand construction activity means the rollout of the NBN now begins in earnest in Victoria and Western Australia,” said NBN Co chief executive Mike Quigley in his company’s statement. “NBN Co is gearing up to meet the challenge of passing 6,000 homes per day when at full capacity.”
There’s not really much to say here – these are two critical contracts which will help the NBN accelerate its rollout over the next several years. NBN Co appears to be solidly on top of its contruction contracts again, after the brouhaha a few months back which resulted in a breakdown in negotiations between the construction firms and the resignation of its own construction chief Patrick Flannigan.
Image credit: NBN Co