Civil infrastructure work boost to reduce effect of recession, page-25

Two consortia have been chosen, and NWH is in one of them (Southwest Connex).

At https://www.roadtraffic-technology.com/news/bunbury-outer-ring-road-consortiums/ you can read, “An alliance contract is expected to be awarded by the end of this year, with construction of the project scheduled to begin in 2021.” It has $681.6m funding from the Commonwealth Government and $170.4m WA government, which rounded is said to total $852m.

If Southwest Connex is awarded that contract, it is anybody's guess how much NWH would get. There are a number of such consortia in WA, and via BGC's former activity in Alliance contracts, NWH would now be in some of them, and NWH stated that it was actively seeking work via Alliance contracts. One should be able to discover what Alliances include NWH, and what Alliance contracts are in the offing.

If the hot-to-trot Bunbury Outer Ring Road is only expected to be contracted at the end of the year, and it is expected to start in early 2021 and finish in late 2024, we are talking about some potential revenue in FY21 and some in FY24, with the bulk in between. This is good, because NWH is fairly busy right now, and extending work contracted into the out years is most welcome.

The prospects for NWH for this Alliance contract is not huge, but there are other projects, and collectively they should lead to a small, but welcome, fillip to business over the years. BGC also had Alliances in other states, so I presume NWH is into these too. The propensity for Government, both State and Commonwealth to make a lot of noise to win votes may exaggerate the reality of their infrastructure spending.