Downer lands multi-million dollar defence redevelopment contract in South Australia

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Image credit: Downer Group's Facebook

Engineering firm Downer EDI Limited has secured a contract for the planning phase of the Australian Defence Force’s Woomera Redevelopment Program in South Australia, marking a significant milestone in the country’s defence infrastructure development. 

In an ASX announcement, the company stated the planning phase is set to commence in September 2023, with the project having an estimated value ranging from $500 million to $750 million, subject to further government review.

Under the terms of the contract, the Downer CPB joint venture will embark on design development activities that will serve as the foundation for the Australian Defence Force’s submission for government approval.

Pending the green light from Government and Parliamentary approval, as well as successful negotiations with the Downer CPB joint venture for the Delivery Phase, the project will undertake the construction of buildings, services, and infrastructure works, aligning closely with the objectives outlined in the Defence Strategic Review.

The construction phase is scheduled to kick off in early 2026 and is projected to conclude by early 2029.

The revenue generated from this undertaking will be equally distributed between Downer and their joint venture partners, CPB Contractors.

Peter Tompkins, the CEO of Downer, expressed his enthusiasm for this contract, which reinforces Downer’s enduring 80-plus-year relationship with the Department of Defence. 

Tompkins stated, “Downer is Australia’s largest sovereign Defence partner, providing program management of Defence base redevelopments and upgrades, integrated facility and asset management across the Defence estate, and technical and professional services.”

He added, “Downer is proud of the role we play in supporting the growth of Australia’s Defence capability and local industry participation.”

Tompkins emphasised Downer’s commitment to collaborating closely with the Department of Defence to develop these critical facilities. 

He said these facilities will not only bolster defence capability for the next three decades but also offer an opportunity to engage Indigenous and Small-to-Medium Enterprises throughout regional South Australia, fostering economic growth and community development in the region.