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Leighton Holdings Quarterly Update 2nd Quarter 30 John Holland awarded $117m Melbourne International Terminal Expansion Works The John Holland Group has been appointed Managing Contractor at Melbourne Airport to deliver a series of projects under the Strategic Terminal Expansion Program for Australia Pacific Airports (Melbourne). John Holland has been awarded two expansion projects worth $117m and is preferred contractor on the third project, which is worth $84m. John Holland’s Southern Region will deliver these expansions to Melbourne Airport’s International Terminal, adding five new aircraft gates, a new international baggage processing system and a new outbound passenger and retail precinct to the existing International Terminal, as part of a proposed $330m investment in airport expansion. Work commenced on the projects at the end of November 2007. The Program represents one of the biggest private sector construction contracts in Victoria and the biggest private sector investment in Victorian transport infrastructure. John Holland’s Managing Director, David Stewart said, “John Holland’s work on Melbourne Airport’s Expansion Program will be undertaken in a fully John Holland has been awarded a $625m contract to construct the 70 kilometre Sugarloaf Pipeline, a major drought-proofing measure linking the Goulburn River to Melbourne’s Sugarloaf Reservoir. The $625m pipeline is one component of the Victorian Government’s "Our Water, Our Future" plan to secure Victorian water supplies for the long term. The Pipeline will transfer 75 billion litres of water to Melbourne per annum, helping to modernise the Food Bowl irrigation system and saving 225 billion litres of water each year. The contract is an alliance between Melbourne Water, John Holland and designers SKM and GHD. Construction of the Sugarloaf Pipeline will combine John Holland’s Southern Region construction business with the specialist capabilities of John Holland’s Water and Structural Mechanical Process businesses. operational environment, drawing upon John Holland’s exemplary track record in both safety and delivery on complex projects. We will work in partnership with Melbourne Airport to ensure that all work is carried out in a safe and timely way, without delays to passengers and aircraft.” Peter Kessler, General Manager of John Holland’s Southern Region said, “This award continues a strong partnership between John Holland and Melbourne Airport. Together, we won the 2006 Australian Construction Achievement Award for Melbourne Airport’s remarkable runway widening works. We look forward to working with the team again during this significant project.” More recently, Melbourne Airport and John Holland formed a five year Relationship Framework Contract for infrastructure works, commencing with the Taxiway Victor contract, which is currently underway. Details of how the completed International Terminal will look can be seen at www. melbourneairport.com.au/t2 John Holland awarded $625m Sugarloaf Pipeline Project John Holland Group Managing Director, David Stewart said that “the Sugarloaf Pipeline project is critical to securing Melbourne’s water supply. John Holland is delighted to bring our diverse expertise and long-standing experience to this new alliance with Melbourne Water.” The initial development phase of the project will commence immediately, involving extensive survey works and community consultation program. Construction of the pipeline is expected to begin in April 2008 and to be completed in 2010. General Manager of John Holland Southern Region, Peter Kessler commented that “with the Sugarloaf Pipeline, John Holland is excited to renew its decade-long relationship with Melbourne Water. We applaud Melbourne Water’s selection of a relationship-based contracting model and look forward to delivering this essential infrastructure for the state of Victoria.” Leighton Contractors wins Pluto LNG Site Preparation Project in WA Leighton Contractors has secured a $163m contract to undertake site preparation bulk earthworks at the new Burrup Liquid Natural Gas (LNG) Park site on Western Australia’s Burrup Peninsula near Karratha. The contract has been awarded by Woodside as part of the Pluto LNG Project. It comprises the first phase of works to develop a new onshore LNG processing plant. Peter McMorrow, Managing Director of Leighton Contractors, said that the skills and experience of our people remain key factors in winning new work. “The award of this site preparation contract for Woodside highlights our ability to mobilise people and equipment within a tight labour market and timeframe,” Mr McMorrow said. Site preparation and earthworks commenced in January and are expected to continue through until third quarter 2008. The project involves drill and blast, load and haul, placement and compaction, and crushing and screening works. Ray Sputore, General Manager of Leighton Contractors’ Western Australian construction operations said that this contract reflects well on the company’s ability to service the rapidly expanding resources and energy sector. “Leighton Contractors worked with Woodside over two decades ago to complete civil works for the Northwest Shelf Development on the Burrup Peninsula. At the time, this landmark project was one of the largest earth moving tasks in Australia and laid the foundations for future development of the Burrup,” he said.
Leighton Holdings Quarterly Update 2nd Quarter 31 Leighton International wins US$1.3bn of new work in UAE Leighton International, through its 45%-owned associate Al Habtoor Engineering, has been awarded US$1.3bn of new work in Dubai and Abu Dhabi in the United Arab Emirates. The first of these projects awarded, and the first contract won by Al Habtoor Engineering since it merged with Leighton International in September 2007, is a US$290m (A$310m) contract for the construction of the new JW Marriott Hotel in Abu Dhabi. The project, for Abu Dhabi National Hotels, involves the construction of a 10- storey hotel with basement, 88 chalets, a marine village, a staff accommodation building, a spa facility and a lagoon. Work commenced last year and is due for completion in January 2010. In December 2007, the company secured a US$520m contract for the construction of the new JAFZA convention centre in Dubai for the Jebel Ali Free Zone Authority. The JAFZA convention centre complex will comprise twin towers for the convention centre, a food court, a 33-storey office complex and sevenstorey hotel. A construction contract for two hotels on Yas Island in Abu Dhabi, for Aldar, worth a total of US$130m, was also awarded last December. The project for Aldar comprises the construction of two separate 4-star hotels on adjacent plots on Yas Island in Abu Dhabi. The first hotel comprises 400 rooms and 30 suites; the second 200 rooms and 10 suites. Also included is a ballroom, numerous function rooms, food and beverage outlets and recreational facilities including pools. Construction commenced in December 2007 and should be completed in September 2009. In January, this year, a US$350m contract was awarded for the construction of a major mixed-use development in Abu Dhabi for United Holdings. The project, currently known as the Plot 9 hotel, residential and commercial complex, comprises: - a 40-storey hotel tower; - a 25-storey tower containing serviced apartments; Plot 9, Abu Dhabi, Leighton International - a 19-storey residential tower; and - an 18-storey office tower. The overall built up area of the project exceeds 240,000m 2 . Construction on the project commenced in early February and will be completed in two stages. Stage 1 will be completed in December 2009, and Stage 2 will be completed in July 2010. Managing Director of Leighton International, David Savage, said that the new contracts highlighted the opportunities available to the company since the merger with Al Habtoor. "Al Habtoor has an unrivalled track record in the region for these type of projects and is considered the contractor of choice for high quality building work," he said. "The construction opportunities available in the region are enormous. More than $120bn will be invested over the next four to five years on infrastructure projects in Abu Dhabi alone. "The outlook for us in this region is very positive, and we expect to secure a number of new projects in the next few months," Mr Savage said. Leighton Contractors' subsidiary HWE Mining awarded $600m contract extension at Yandi, WA HWE Mining has been awarded a three-year contract extension worth approximately $600m at the Yandi iron ore mine in Western Australia’s Pilbara region. The contract extension at BHP Billiton’s Yandi mine will see HWE Mining provide complete mining services at the project from the current completion date of August 2009 until August 2012, with an option for BHP Billiton to extend the contract by a further two years. The award of the Yandi contract extension follows a decision in June 2007 to award HWE Mining a two-year contract extension worth A$400m to operate the Yandi mine. Peter McMorrow, Managing Director of Leighton Contractors, said that the contract extension reflected the highly successful business partnership between HWE Mining and BHP Billiton Iron Ore that has spanned many years. “The award of this contract is an outstanding achievement that recognises our ability to work alongside BHP Billiton in delivering mining solutions that add value to their operations,” Mr McMorrow said. Craig Laslett, Executive General Manager of Leighton Contractors’ Mining Division, said the contract extension was an excellent result for the HWE Mining team. “HWE Mining has a proud association with Yandi and has been providing contract mining services at the mine for BHP Billiton Iron Ore since 1991,” Mr Laslett said. “Our team at Yandi have played a significant part in delivering a world class operation that has an exceptional safety record, and we look forward to being part of the mine’s future success.” Henry Walker Eltin commenced operations at Yandi in 1991 with the construction of the first process plant producing 5 million tonnes per annum (Mtpa) of iron ore. Production has increased over this period and HWE Mining now produces more than 40Mtpa of iron ore, with over 400 employees on site.
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