The ASI has welcomed the announcement by the NSW Government on 23 October naming the John Holland MPC Group Joint Venture as prime contractor to design and construct the $467 million, 270km River Murray to Broken Hill pipeline.

ASI Chief Executive, Tony Dixon said it is a testimony to the capability of the local supply chain and the commitment of the NSW Government that it will be providing most of the steel after being given fair opportunity to compete under the State’s new procurement guidelines.

The revised NSW Government procurement framework requires steel to meet Australian Standards and to be sourced from independently verified steelmakers with the source of the steel able to be readily identified, and steelwork to be specified to the new Australian standard AS/NZS 5131.

This project is one of the first to be supplied under the NSW Governments new procurement policy. The Broken Hill pipeline will be constructed substantially from steel rolled in Australia.

“This is a great win for regional western NSW Wentworth and Broken Hill economies as well as for further confidence injected into the Illawarra region where the steel will be milled,” he said.

“With the NSW Government’s recent reforms to its procurement policies developed in consultation with industry taking more account of broader economic factors, we look forward to greater benefits flowing from these types of nation building projects going forward.”

He said that work undertaken in conjunction with the ASI estimated the project would contribute up to $28.4 million to the NSW Gross State Product (GSP) and up to $127.1 million to Australian Gross Domestic Product (GDP), with potential to provide around 162 full time equivalent (FTE) jobs in NSW and 748 FTE jobs across Australia, when the domestic steel supply chain is used.

“With the NSW Government’s reforms to its procurement policies also taking more account of these types of metrics and the flow-on benefits like ensuring that the existing high skills base is available for ongoing maintenance, it can only strengthen invaluable industrial capability in the State as the largest purchaser of Australia steel,” he said.

“We congratulate the John Holland MPC Group Joint Venture on gaining the new project work and the NSW Government for its leadership in opening up valuable opportunities for local industry.”