Transgrid awards $2.9bn contracts to two HumeLink delivery partners

One of New South Wales’ largest energy infrastructure projects to date has reached a major milestone, taking it a step closer to being built. 

Transgrid has announced two delivery partners for its proposed HumeLink transmission project, which will help secure energy supply for the millions of Australians once ageing coal-fired power stations are retired. 

The delivery of HumeLink will involve the construction of a 385-kilometre new transmission line, built in two sections (east and west), along with new or upgraded infrastructure at four substation locations – subject to the Australian Energy Regulator’s revenue determination and completion of finance arrangements. 

“HumeLink is a vital link in the National Electricity Market which will reinforce and support the critical southern network of NSW and Victoria. A secure national electricity grid is dependent on the acceleration of major transmission projects needed to realise the Federal and NSW governments’ vision for Australia’s clean energy future,” Transgrid CEO Brett Redman said. 

Following the announcement of shortlisted builders in 2022, Transgrid has awarded $2.9 billion in contracts to two reputable Tier 1 delivery partners: 

• HumeLink East: ACCIONA and GenusPlus Group Ltd Joint Venture 
• HumeLink West: CIMIC Group companies UGL and CPB Contractors 

The contracts are structured in two stages. The first stage will involve early works – which will commence immediately and be completed in mid-2024 – including detailed design, investigation, procurement and project mobilisation. Stage two of the delivery partner contracts will include main construction works that are set to begin once all project approvals are secured and the final investment decision is made – expected in mid-2024. 

“We are pleased to be chosen to deliver the initial works for the western section of HumeLink. The project will increase the amount of renewable energy that can be delivered across the national electricity grid, delivering reliable and sustainable power. It will also support economic growth and local jobs and skills,” CIMIC Group Executive Chairman Juan Santamaria said. 

“UGL is a leader in the design, constriction, commissioning, and operation of high voltage energy assets, having installed more than 6,000km of transmission lines and more than 200 substations across Australia. We’re pleased to continue our longstanding relationship with Transgrid and bring our decades of experience to the delivery of this nationally significant project,” UGL Managing Director Doug Moss said. 

“As a leader in major infrastructure construction, we bring extensive regional delivery experience to this important project and, as our team work collaboratively with local businesses and communities to maximise the economic benefit this project brings, we’ll also be working with local partners to ensure a positive skills legacy is achieved for the area,” CPB Contractors Managing Director Jason Spears said. 

“ACCIONA has been delivering complex and sustainable projects to enhance the loves of Australians for over 100 years. And we are delighted we are continuing to do so with a project that will not only expand the capacity of the electricity network in southern NSW, bring greater reliability and affordability for household, but also bolster the integration of renewable energy into the grid,” ACCIONA CEO Australia and New Zealand Bede Noonan said. 

“We are delighted to be selected to deliver HumeLink East, alongside our joint venture partner. Together we will support Transgrid as Genus continues to grow its national footprint. We very much value the relationship we have forged with Transgrid and look forward to building on this into the future,” GenusPlus Group Managing Director David Riches said. 

HumeLink map (source: Transgrid)

HumeLink will provide major opportunities for jobs and suppliers at regional and national levels, with the project representing a once-in-a-generation investment in Australia’s energy future and it is expected to deliver over $500 million in net benefits for Australians. 

Transgrid has consulted with participants in the domestic and international construction markets to ensure the project achieves long-term sustainable outcomes that will benefit electricity consumers and support jobs, training and investment in regional and rural New South Wales communities. 

Given the scale of the HumeLink project, Transgrid acknowledges the sensitivities of communities and landowners, and have rigorously ensured that: 

• Significant community, stakeholder and consumer representative engagement has been undertaken and selected the most beneficial route that appropriately balances cost, environmental impacts and amenity impacts for local communities 
• Every practicable opportunity has been considered to reduce the cost to consumers, including embedding innovation in the design and technical solutions to deliver the most cost-efficient outcome, locking in long-lead equipment on a program basis to reduce cost and time and engaging reputable delivery partners via a competitive process 
• The contracting model aligns to Transgrid’s objectives with those of the delivery partners and consumers, with in-built incentives to deliver the HumeLink project at the lowest cost 

“Transgrid and its delivery partners will continue to engage with landowners, communities and stakeholders on HumeLink and VNI West and invest in local regions to enhance job, education and training opportunities and help boost local economies,” Mr Redman said. 

HumeLink is estimated to support approximately 1,600 jobs over its life. The project will focus on local industry participation as well as employing a local workforce, with an Indigenous procurement and participation target of 2.5 to 5 per cent. 

Source: Transgrid (1, 2); CPB Contractors; UGL; ACCIONA Australia; Roads and Infrastructure Australia