NBN rollout to transition to new contractors in WA and SA
NBN Co and the Syntheo Joint Venture have mutually agreed that contracts due to expire in September 2013 and November 2013 in South Australia and Western Australia will not be extended.
Syntheo will complete construction work in progress, which is expected to conclude in early 2014.
SA Power Networks will become the prime NBN contractor in South Australia, in addition to Syntheo completing work in progress. Downer EDI has begun construction in Western Australia, and NBN Co is scoping the prospect of bringing on additional construction capacity in the coming months in both states.
As part of today’s agreement, Syntheo has committed to repaying NBN Co advances for overheads.
Furthermore, Lend Lease has advised the Australian Stock Exchange that it has reached a new commercial arrangement with Syntheo joint venture partner, Service Stream Limited. As a result, Lend Lease will control the delivery of Syntheo’s remaining obligations under the agreement with NBN Co, subject to the satisfaction of approval conditions.
NBN Co Chief Executive Mike Quigley said this change is not expected to affect the overall cost of the project or the long-term completion of the build by 2021.
NBN Co has ten contracted construction and operations delivery partners. Until March, Syntheo was also responsible for the rollout in the Northern Territory, at which time NBN Co assumed direct responsibility for delivery there.
Service Stream’s obligations for the additional contracts it has directly entered into with NBN Co to deliver the NBN – to new developments in NSW, WA, SA & NT, and for Field Services Delivery (FSD) and Network Augmentation and Restoration Activities (NARA) in Victoria, WA, SA and NT – are unaffected by today’s announcement.
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