UGL Awarded $120 million Melbourne Water Corporation Contract

February 3rd, 2010

UGL Limited (UGL) announced that it has been nominated by Melbourne Water Corporation as preferred construction partner, in Joint Venture with Baulderstone, for the planned upgrade of the Eastern Treatment Plant in the south east suburb of Carrum.

UGL and Baulderstone will form an Alliance with Black & Veatch, KBR and Melbourne Water to undertake this $380 million project. UGL’s share of the project is approximately $120 million. Melbourne Water is owned by the Victorian Government and provides wholesale water, sewage and recycled water services, and manages waterways and major drainage systems in the Melbourne metropolitan area and beyond. This upgrade will significantly improve the quality of treated water discharged into Bass Strait.

The project is subject to a final round of Government approval and is expected to commence by the middle of this year. A contract with Melbourne Water is expected to be finalised once this approval has been received.  The upgrade will be completed by the end of 2012 followed by a further two years of operations and maintenance services. UGL and its Alliance partners will provide design and construction services and will also participate in the initial operation and maintenance phase of the project in conjunction with Melbourne Water.

UGL’s Managing Director and CEO Richard Leupen said the company stands to benefit from increased spending in the infrastructure sector with a healthy pipeline of tendering opportunities currently being pursued.  He said UGL’s strategy of pursuing Alliance style projects gives UGL the capabilities and scale to pursue larger infrastructure projects.

The project with Melbourne Water also further strengthens UGL’s recurring revenue base.

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