Minister for Small Business, Customs and Construction, Senator Chris Schacht

MT74/MR149

5 June 1995

CONSORTIUM APPROACH TO WIN ASIAN INFRASTRUCTURE PROJECTS

Announcing Government loan assistance for an Australian bid to win a major port construction job in Indonesia, the Minister for Construction, Senator Chris Schacht, and the Minister forTrade, Senator Bob McMullan, said in Canberra today that the consortium approach to winning major infrastructure projects in Asia is the way to go.

Under the Government's Asian Infrastructure Consortia Program (AICP), a consortium of McMillan Britton & Kell Pty Ltd, G F Macknight Consulting Pty Ltd, P& O (Australia) Ltd, GEC Alsthom Australia Ltd, McMahon Holdings Ltd, and HMA Joint Venture will receive a $500,000 loan.

Senator Schacht said the AICP has played a crucial role in encouraging the formation of the consortium and optimising the Australian content of the overall project.

"The loan will assist the consortium complete a feasibility study as part of its bid to win the design and construction of a major port in west Java, Indonesia," Senator Schacht said.

"This project is valued at more than $1 billion and, if the Australian bid is successful, the consortium will construct and equip the port in stages over the next 10 to 15 years."

Stage one, due to start in the next few months, involves construction of a 600 metre wharf and container handling facilities worth around $288 million. The completed project will include 2.4 kilometres of wharf for container handling and a three-berth bulk handling facility.

Senator McMullan said the AICP has been well received by industry, and it is obvious the consortium approach will result in more competitive and comprehensive bids for major jobs in Asia.

"This project fits into our broad trade strategy - diversifying our exports and integrating with the region," Senator McMullan said.

The two AICP applications approved so far cover projects worth around $2.5 billion, and a further eight applications currently being processed are for projects totalling more than $3 billion.

Further information:

Senator McMullan's office: John Flannery, (06) 277 7420

Senator Schacht's office: Carol Sutherland, (06) 277 7080