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IPA National Infrastructure Awards 2012
Infrastructure Partnerships Australia hosted the Annual Infrastructure Oration and 2012 National Infrastructure Awards at a gala event in Sydney earlier this year.
ABOVE: IPA Awards 2012 BELOW: The Hon Mark Birrell, Hon David Davis, Tony Lubofvsky, Rob Aldis.
The event marked the sixth time IPA has convened the Awards, bringing together 600 public and private sector leaders.
More than 70 nominations were received across the seven categories, with the calibre of project nominations noted by the panel.
The independent judging panel for this year’s event included:
• Adrian Kloeden, Chairman of Serco Asia
Pacific (panel Chair) • Dr Kerry Schott, former Managing
Director of Sydney Water, IPA Board
Member and the author of the New South
Wales Government’s Commission of Audit into Public Sector Management • Rick Turchini, former Managing Director of
Baulderstone and Non-Executive Director • The Hon Mark Birrell, Chairman of
Infrastructure Partnerships Australia.
This year’s Annual Infrastructure Oration was delivered by Hamish Tyrwhitt, Chief Executive of Leighton Holdings.
Tyrwhitt was appointed Chief Executive in August 2011 after nearly 25 years in the construction sector, including most recently as Managing Director of Leighton Asia and as a Director of Leighton Contractors (Asia).
The overarching theme of this year’s Oration was the need for Australia to capitalise on the unprecedented growth taking place in Asia, and the need for governments to develop earnest, long-term infrastructure plans that survive the political cycle.
IPA National Infrastructure Awards 2012
With half of the world’s middle class expected to be living in Asia within the next 10 years, Tyrwhitt said he was ‘fundamentally convinced’ that Australia is uniquely positioned to take advantage of this growth.
Australia is now as much a part of Asia as it ever was of Europe, he explained, and the commodities boom will continue to lead to closer ties with major trading partners such as India, China and Indonesia.
‘We’re part of Asia. We’re part of the Asian Century. And that means we’re part of a new era of growth,’ Mr Tyrwhitt said.
He explained that Australians had developed a reputation throughout Asia for bringing a professional, innovative and imaginative approach to major infrastructure delivery – an attitude that ‘aligns perfectly with the aspirations of the booming economies of our region’.
Tyrwhitt also called on Australia to deliver the long-term planning vision that’s needed to help solve the country’s infrastructure backlog, adding that too often infrastructure was captive to the political cycle.
‘We need a list of priorities and a commitment from governments of all persuasions to stick with it, to fund it and to deliver it,’ Tyrwhitt said.
He explained that a list of priorities and funding commitments from governments was the ‘most basic of starting blocks’, yet had remained ‘frustratingly elusive’ for years, resulting in Australia falling behind Singapore, Hong Kong and mainland China.
‘The Asian Century was not born of luck, or through the relative demise of the United States and Europe.
‘It has been delivered by governments through excellent planning, great choices and the fundamental understanding that investing in ... quality infrastructure delivers amazing results.’
He said that Australia faced a simple decision: ‘invest now, or get left behind.’
Tyrwhitt’s Oration concluded by challenging Australia’s governments to invest in the country’s productive capacity.
‘We need a shared vision. We need a vision un-blinkered by politics. A vision that sees beyond the political cycle. A vision that recognises [that] investing in infrastructure is a prerequisite for growth and prosperity.’
ABOVE: Hamish Tyrwhitt delivers the 2012 Infrastructure Oration
IPA National Infrastructure Awards 2012 Project of the Year
WINNER: New Royal Children’s Hospital, Project of Year
Project of the Year – sponsored by Evans & Peck
Winner: The New Royal Children’s Hospital Victorian Department of Health and Children’s Health Partnership, consisting of: International Public Partnerships, Lend Lease, Spotless Group, Billard Leece, Bates Smart and HKS
The new $1 billion Royal Children’s Hospital in Melbourne, Victoria, is a world-class, 357-bed tertiary paediatric hospital with state-of-the-art facilities, providing the best healthcare and environment for patients, families and staff.
Commissioned on time and on budget, it features a stunning central atrium spanning six floors, a two-storey coral reef aquarium, a meerkat enclosure maintained by Melbourne Zoo, interactive Scienceworks displays, a Hoyts ‘bean bag’ theatre and 85 per cent single-bed rooms.
Located in Royal Park, the hospital boasts direct park views in 80 per cent of inpatient bedrooms, and an outdoor terrace in every ward.
Courtyards, gardens and play areas feature throughout the hospital. The new RCH is Australia’s greenest hospital, with energy efficient features that reduce greenhouse gas emissions by 45 per cent, and water saving features achieving a minimum 20 per cent reduction in water use.
A visionary design brief, on a unique site, led to the creation of an exceptional project solution and delivery of a facility beyond the client’s expectations.
IPA congratulates the Victorian Department of Health, Lend Lease, International Public Partnerships, Spotless Group, Billard Leece, Bates Smart and HKS on this outstanding project.
Previous recipients of the prestigious Project of the Year include:
• 2011 – The Gateway Upgrade Project (QLD) • 2010 – Melbourne Channel Deepening (VIC) • 2009 – Headquarters Joint Operations
Command Centre (ACT) • 2008 – Eastlink Motorway (VIC) • 2007 – NSW Schools PPP (NSW)
IPA National Infrastructure Awards 2012
Project of the Year Finalists
Port Botany Expansion
Nominee: Sydney Ports Corporation (Client); Baulderstone/Jan de Nul (Delivery Joint Venture)
The Port Botany Expansion project is an outstanding example of engineering excellence and one of the most significant port infrastructure projects delivered in Australia for over 30 years. The $515 million project included the reclamation of 60 hectares of land with the construction of 1.85 kilometres of shipping wharves and associated rail and road network.
The complex and demanding works were delivered safely, on time and within budget, using innovative design solutions and construction methodologies. This was achieved in spite of significant challenges that would have substantially delayed most projects of a similar scale.
The project has provided significant enhancements to the local community and environment, as well as major economic benefits and value for money to the wider community.
In addition to setting a number of benchmarks for future infrastructure projects in Australia and internationally, the PBE is a testament to true collaboration, engineering innovation and groundbreaking design.
The Westgate Bridge Strengthening Project
Nominee: Westgate Bridge Strengthening Alliance, consisting of: John Holland, VicRoads, Sinclair Knight Merz and Flint & Neil
The West Gate Bridge Strengthening Alliance has delivered strengthening and upgrades worth $400 million to the 2.8-kilometre long bridge, while maintaining the operational capacity of the bridge to safely carry 160,000 vehicles per day.
At its construction peak, 700 workers were on site, as well as 200 permanent staff. Together, they delivered outstanding engineering and program solutions to the complex issues of strengthening an existing bridge where virtually every location required a bespoke solution with high levels of fitment accuracy.
Installing 400,000 bolts, 100,000 fabricated steel sections, 12,000 square metres of carbon fibre fabric and 38 kilometres of carbon fibre laminate, while working at heights of up to 50 metres over the navigation channel of Australia’s busiest port, over public roads and high-voltage power lines, made the West Gate Bridge Strengthening one of the most challenging and logistically complex projects ever undertaken in Australia.
ABOVE LEFT: The Port Botany Expansion Project
BELOW RIGHT: Westgate Bridge
Winner: The Barangaroo Development Project KPMG – Financial Adviser to the State
Barangaroo represents an extraordinary opportunity for urban, waterfront renewal. On the western edge of Sydney’s CBD, this 22-hectare former container port is being transformed into a vital new extension of the city. When complete, the $6 billion precinct, funded by private sector investment,
IPA National Infrastructure Awards 2012
RIGHT: Barangaroo Development Project
will include a new iconic landscaped Headland Park, spectacular public waterfront walks and parks, shops, cafes and restaurants, world-class commercial office towers and apartments, all serviced by new and extended transport systems. Barangaroo will be a welcoming place for all Australians.
It will give everyone a dynamic new opportunity to enjoy Sydney Harbour, with more than half of Barangaroo being open public space. Construction has begun on both the Headland Park and the basement beneath the three commercial towers.
The first commercial tower, the Headland Park and the public promenade are on track to open in 2015, with completion of the entire development projected by 2023.
Finalists
Nation Building Economic Stimulus Program – NSW Social Housing Initiative Nominee: Evans & Peck – Strategic Adviser to the State
The federal government’s $1.9 billion Nation Building Economic Stimulus Program for Social Housing in New South Wales is the largest social housing infrastructure project across Australia in decades.
The Program has delivered 6028 accessible and energy efficient homes to date for thousands of people in need.
In a strategic advisory role, and in partnership with Housing NSW, Evans & Peck developed the initial strategy for the Program to deliver the NSW Social Housing Initiative. A series of innovative processes were implemented to achieve significant time and cost savings. Evans & Peck went on to hold key positions in the Program Management Office during the implementation and delivery phases of the Program.
The Program successfully stimulated the New South Wales economy during the global financial crisis, creating over 5000 jobs, providing opportunities for a new generation of apprentices, and injecting $1.9 billion within two years – while housing over 10,000 people in need.
Victorian Comprehensive Cancer Centre
Nominee: Ernst & Young – Commercial and Financial Adviser to the State
The Victorian Comprehensive Cancer Centre (VCCC) Project includes the development of a purpose-built PPP facility in Parkville to support and enable integrated delivery of patient treatment and care, and cancer research and education.
The Victorian Department of Health is the lead state agency. Ernst & Young is the state’s financial and commercial adviser to the project since completing its business case. Plenary Health is the developer.
The new facility will house the relocated Peter MacCallum Cancer Centre. It will also provide cancer research and clinical care facilities for Melbourne Health and The University of Melbourne. In addition, eight successful organisations in cancer control have formed a powerful alliance with the vision to save lives through the integration of cancer research, education and patient care.
Through innovation and collaboration, the VCCC alliance will drive the next generation of improvements in prevention, detection and cancer treatment.
Contractor Excellence Award – sponsored by The Bank of TokyoMitsubishi UFJ
Winner: The Port Botany Expansion Project Baulderstone
The Port Botany Expansion project is an outstanding example of engineering excellence and one of the most significant port infrastructure projects delivered in Australia for over 30 years. The $515 million project included the reclamation of 60 hectares of land with the construction of 1.85 kilometres of shipping wharves and associated rail and road network.
IPA National Infrastructure Awards 2012
The complex and demanding works were delivered safely, on time and within budget, using innovative design solutions and construction methodologies. This was achieved in spite of significant challenges that would have substantially delayed most projects of a similar scale.
The project has provided significant enhancements to the local community and environment, as well as major economic benefits and value for money to the wider community.
In addition to setting a number of benchmarks for future infrastructure projects in Australia and internationally, the PBE is a testament to true collaboration, engineering innovation and groundbreaking design.
Finalists
Logan Water Alliance Nominee: Logan Water Alliance, consisting of: Allconnex Water, Cardno, Parsons Brinckerhoff and Tenix
Allconnex Water’s Logan Water Alliance is a $300 million planning-led alliance accountable for the delivery of planning, design and construction activities for new and improved water, wastewater and recycled water infrastructure.
The Alliance is a public-private sector enterprise comprising Tenix, Parsons Brinckerhoff, Cardno and Allconnex Water, and was established in August 2009 to meet the demand for water services in the Logan district.
One of the largest water infrastructure delivery programs of its type, Logan Water Alliance’s main activities include: • program management • planning and project development • project delivery.
Middlemount Coal Rail Spur
Nominee: Middlemount Early Rail Alliance, consisting of: John Holland, Middlemount Coal Pty Ltd and GHD
The Middlemount Coal Rail Spur Project, delivered by the Middlemount Early Rail Alliance (MERA), involved the design, construction and commissioning of a 16.5-kilometre electrified rail spur to transport coal from the Middlemount Coal Pty Ltd (MCPL) open cut coal mine near Middlemount, Central Queensland, to Hay Point.
Construction began in August 2010 and reached practical completion in November 2011.
MERA comprised MCPL as the owner, John Holland (Qld) Pty Ltd as constructor and GHD (Aust) Pty Ltd as designer. This is the first railway balloon loop and connection to the QR National mainline to be designed and constructed solely by a private contractor and owned by a private company in Queensland.
During construction, MERA was faced with several challenges, including six months of wet weather at the commencement of the project. Amidst these challenges, MERA delivered impressive statistics and results on safety, environment, quality and early project delivery.
Financial Excellence Award – sponsored by Rider Levett Bucknall
Winner: The New Royal Adelaide Hospital Macquarie Capital – Financial Adviser and CoSponsor
The new Royal Adelaide Hospital (new RAH) will be South Australia’s largest and Australia’s most advanced hospital. The new RAH is the single largest infrastructure project ever undertaken in South Australia. Containing 700 single-room beds and 100
ABOVE LEFT: The Port Botany Expansion project
BELOW: Artist’s impression of The New Royal Adelaide Hospital
IPA National Infrastructure Awards 2012
BELOW: Mundaring Water Treatment Plant same-day beds, the new RAH will have the capacity to admit more than 80,000 patients per year.
The SAHP consortium (including Hansen Yuncken, Leighton Contractors, Macquarie Capital and Spotless) will undertake the financing, design, construction and operation of the non-clinical services of the $1.85 billion new RAH over a 35-year concession period.
At financial close, the Macquarie-arranged financing solution raised more than $2.5 billion in long-term debt, and more than $300 million in private equity investment.
Finalists
Victorian Comprehensive Cancer Centre Nominee: Plenary Group – Financial Adviser and Sponsor
The Victorian Comprehensive Cancer Centre (VCCC) Project will deliver a new, $1 billion facility purpose-built for cancer research, treatment and care in the Melbourne suburb of Parkville, Victoria.
Construction is underway to create the brand new 130,000 square metre home for the Peter MacCallum Cancer Centre, and new cancer research and clinical services for Melbourne Health and The University of Melbourne.
In addition to the new facilities being built, eight world-leading cancer organisations have come together to share knowledge and resources and drive the next generation of cancer research, education, treatment and care.
Based on the site of the former Royal Dental Hospital, and linked by bridges across to new facilities at The Royal Melbourne Hospital, the VCCC Project will assist building partners to accelerate the discovery of new cancer treatments, attract the nation’s leading cancer researchers and provide a centre of excellence for people affected by cancer.
Wiggins Island Coal Export Terminal
Nominee: Australia and New Zealand Banking Group Limited – Financial Adviser
The Wiggins Island Coal Export Terminal (WICET) is a new coal loading facility being constructed at the Port of Gladstone in Queensland.
WICET is owned and being developed by existing and potential coal exporters, and is the first bulk terminal in Australia enabling multi-user and multiowner participation by all qualifying producers.
WICET is essential infrastructure for the development of coal export capacity to service the steelmaking and energy needs of the Asia Pacific region. For Queensland, it provides a crucial platform for the development of large-scale export mines in the Bowen and Surat basins.
Once fully commissioned, the Terminal will provide over 80 million tonnes per annum of additional export coal capacity through the Port of Gladstone. In September 2011, WICET successfully completed the financing for Stage 1 development (27 million tonnes per annum), raising a total of US$2,900 million and A$1,150 million to fund construction costs.
Government Partnership Excellence Award – sponsored by SMART Infrastructure Facility
Winner: The Mundaring Water Treatment Plant Client – Water Corporation of Western Australia Delivery Consortium – Helena Water, consisting of: ACCIONA Agua, Brookfield Multiplex, Lloyds Bank Corporate Markets, Royal Bank of Scotland Advisory Services and TRILITY
Helena Water has entered into a PPP with Water Corporation of Western Australia to finance, design, construct, operate and maintain a $306 million water treatment plant at Mundaring. The project reached financial close in July 2011 and is expected to be completed in two years, followed by a 35-year operating concession.
IPA National Infrastructure Awards 2012
The Helena Water consortium comprises ACCIONA Agua, TRILITY, Royal Bank of Scotland Infrastructure Advisory, Lloyds Bank Corporate Markets, and Brookfield Multiplex.
Helena Water’s financial adviser, RBS Infrastructure Advisory, procured a highly competitive debt funding solution from its bank group, comprising Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Banco Bilbao Vizcaya Argentaria and WestLB. It was the first PPP in Australia since the global financial crisis to be funded entirely by foreign banks.
The project is the first PPP awarded in Western Australia in over five years, and contributes to meeting the state’s objective of diversifying financing sources for the development of infrastructure in Western Australia.
Finalists
Queensland Asset Sales Program Client – Queensland Government
On 2 June 2009, the Queensland Government announced the restructure of key components of its infrastructure asset portfolio under the Renewing Queensland Plan, a two-year asset sale program designed to strengthen the state’s balance sheet and fund its ambitious capital program.
The program was conducted under the Renewing Queensland Plan – developed by Rothschild, Bank of America Merrill Lynch and Royal Bank of Scotland.
The plan involved the divestment of approximately $15 billion of assets across the forestry, toll roads, rail and ports sectors.
The assets sold under the Renewing Queensland Plan included: • Forestry Plantations Queensland; sold (by way of 99-year lease) for $603 million • QR National; demerger and IPO with an enterprise value of $6.7 billion • Port of Brisbane; sold (by way of 99-year lease) for approximately $2.3 billion in proceeds • Abbot Point Coal Terminal; sold (by way of 99year lease) for $1.829 billion • Queensland Motorways Limited; sold (by way of a 40-year concession) to QIC for $3.088 billion.
Queensland Reconstruction Client – Queensland Reconstruction Authority
Over the summer of 2010–2011, Queensland experienced an unprecedented series of extreme weather events that devastated local communities, damaged vital infrastructure and resulted in the entire state being declared a natural disaster zone.
The Queensland Reconstruction Authority is overseeing the $6.8-billion reconstruction program through a governance structure that has been recognised as best practice.
As at December 2011, there were almost $755.7 million of projects completed, $1.965 billion in projects underway or out to tender, and a further $834.3 million being prepared for market.
Tasmanian Sustainable Irrigation Development Tasmanian Irrigation Pty Ltd
The state-owned company Tasmanian Irrigation (TI) is transforming the island’s farming landscape with a series of 13 irrigation schemes that will all but droughtproof the state. With climate change, the schemes will broaden the canvas upon which Tasmanian farmers can work, opening up new crops and enabling conventional horticulture and livestock production to be intensified.
TI’s partnership involving the Commonwealth, the Tasmanian Government and private farmer capital will deliver the equivalent of 40,000 Olympic swimming pools of extra water every year to Tasmanian farms, with 95 per cent reliability of delivery.
The schemes are costing $330 million; one-third of which is private farmer capital. The project is nearly halfway to its target and will be completed in 2015.
Not only will it herald a new era in Tasmanian agriculture that will contribute to world food security, it will breathe new life into marginal towns and communities throughout the state.
Operator and Service Provider Excellence Award – sponsored by Plenary Group
Winner: The Operation of Yarra Trams KDR – Keolis Downer EDI Rail
Finalists
The operational delivery of the Aspire Schools PPP Leighton Contractors – Services Division
Leighton Contractors’ Services Division is responsible for the daily operations of seven schools (six primary and one secondary) across south-east Queensland, built under the Aspire Schools Public Private Partnership (PPP) Project.
IPA National Infrastructure Awards 2012
TOP LEFT: Yarra Trams
BELOW RIGHT: FutureFlow
The $189 million operational contract stands for 30 years, with an additional contingency period of 25 years. This includes the operations and maintenance of all school facilities, and the life cycle management of the assets and buildings.
The team of 39 staff is responsible for all hard and soft services following construction. Leighton Contractors’ Services Division works closely with principals and school officers at each site to deliver reliable facilities that enable teaching staff to focus on delivering quality education to students.
Demand for the schools has grown beyond original enrolment forecasts, and staff now maintain facilities for over 5779 Queensland students.
The operation of The Perth Desalination Project – Degrémont
Facing impending water shortages in April 2005, Western Australia’s Water Corporation (WA) formed an alliance with global water treatment company Degrémont and constructor Multiplex Engineering Pty Ltd.
The resulting alliance (pro-alliance) was tasked with the design, build and 25-year operation (alliance between Degrémont & Water Corporation (WA)) of The Perth Seawater Desalination Plant – the city’s first seawater desalination plant using reverse osmosis technology and the first large desalination plant in the southern hemisphere.
The $345 million state-of-the-art plant is located at Kwinana, 25 kilometres south of Perth in Western Australia. With a capacity of 143,000 cubic metres per day, the plant is able to produce up to 17 per cent of Perth’s drinking water.
Following five years of continued operational success, the plant continues to consistently help with the area’s drought, population growth, increased water demand and reduced rainfall, allowing the people of Perth to trust and rely on the valued operation of the plant.
Joint winners: FutureFlow FutureFlow Alliance consisting of Transfield Services, Sinclair Knight Merz, Comdain Construction and Goulburn Murray Water
Northern Victoria is one of the most important agricultural production regions in Australia. The farmers in this region produce food for local and export markets totalling around $1.94 billion. Following 12 consecutive years of drought, and irrigators’ reliance on an outdated irrigation system, this once-productive food region struggled to maintain this output.
The $290 million FutureFlow alliance was set up in 2008 by GM-W to go about modernising the existing irrigation infrastructure (over 6300
IPA National Infrastructure Awards 2012
continued from page 52 kilometres of open channels) with a world-leading IT-based system, and in the process save over 30 per cent of water (on average 94 gigalitres per year) that was previously lost through leakage, seepage or evaporation.
This water has been returned to irrigators and the environment to maintain the region’s strong agricultural output.
To date, the FutureFlow alliance has delivered the largest and fastest-constructed channel automation system in Australia, and possibly the world.
Tasmanian Sustainable Irrigation Development Tasmanian Irrigation Pty Ltd
The state-owned company Tasmanian Irrigation (TI) is transforming the island’s farming landscape with a series of 13 irrigation schemes that will all but droughtproof the state. With climate change, the schemes will broaden the canvas upon which Tasmanian farmers can work, opening up new crops and enabling conventional horticulture and livestock production to be intensified.
TI’s partnership involving the Commonwealth, the Tasmanian Government and private farmer capital will deliver the equivalent of 40,000 Olympic swimming pools of extra water every year to Tasmanian farms, with 95 per cent reliability of delivery.
The schemes are costing $330 million; one-third of which is private farmer capital. The project is nearly halfway to its target and will be completed in 2015.
Not only will it herald a new era in Tasmanian agriculture that will contribute to world food security, it will breathe new life into marginal towns and communities throughout the state.
BELOW: Tasmanian Sustainable Irrigation Development
IPA partnered with the Department of Infrastructure and Transport to award a $25,000 grant for research to be undertaken in the area of smart infrastructure.
Nominees were assessed on their research scope and potential application of their research to create greater efficiencies in new and/or existing infrastructure.
Recipient: Colin Duffield, Associate Professor, University of Melbourne for Quantification of design innovation for infrastructure projects
This research aims to quantify the benefits of design innovation brought to bear on service outcomes and sustainability through the use of different procurement techniques (including PPPs and collaborative contracts) and a competitive bidding process. A key outcome of the study will be the establishment of a refined and industry-validated model for evaluating design value.
This research will be the first study in Australia that seeks to quantify the value proposition relationship between an early investment in design and the economic and service outcomes delivered over time.
Infrastructure Partnerships Australia would like to thank our sponsors for this year’s event and particularly acknowledges the generous support of our Oration sponsor, the Bank of Tokyo-Mitsubishi UFJ.
Thank you to our category sponsors: • Hansen Yuncken • Plenary Group • Rider Levett Bucknall • Evans & Peck • The Federal Department of Infrastructure and
Transport • The SMART Infrastructure Facility.
