McConnell Dowell 2018 Annual Review

The market in New Zealand continues to gain momentum with Government investment in large-scale projects. A higher level of market activity is expected over the coming period. The New Zealand and Pacific Islands business unit successfully completed key projects within the region including the Kawarau Falls Bridge, Russley Road Overpass in the South Island, and the Mangere Biological Nutrient Reactor Upgrade in the North Island. The Mangere BNR Project represents a critical piece of Auckland Infrastructure and McConnell Dowell secured the Supreme Award from the Civil Contractors New Zealand Excellence Awards 2018. The revenue of the business unit declined to AUD174 million (2017: AUD270 million). Operational performance was strengthened during the year as good progress was made on the City Rail Link project in the Auckland CBD, Sumner Road rebuild and the Christchurch Southern Motorway. One highlight of the year was the signing of the Interim Partner Alliance Agreement for Wynyard Edge Alliance set up to deliver the infrastructure required for the 36th Americas Cup in Auckland. Contracts were confirmed for the Lyttelton Harbour Wastewater Project, and significant Sumner Rd rebuild variations in New Zealand, Te Mato Vai (Cook Islands) and Pago Pago Airport Apron (Phase 1) and Runway Overlay in American Samoa. A change to a Labour led coalition Government has resulted in a reassessment of required infrastructure, and the core markets are expected to remain relatively stable in the near term with larger capital projects returning to the medium-term pipeline. The business is positioned to secure several targeted projects in the marine, water and transport sectors to underpin revenue growth in 2019. Active Projects City Rail Link, Auckland Army Bay Outfall Upgrade, Auckland Diamond Harbour & Lyttelton Waste Water, Canterbury Lyttelton Tunnel Deluge Upgrade, Canterbury Christchurch Southern Motorway Stage 2, Christchurch Te Mato Vai, Rarotonga, Cook Islands Pago Pago Runway Overlay, American Samoa Pago Pago Airport Apron (Phase 1), American Samoa New Zealand & Pacific Islands Business Unit Fraser Wyllie Managing Director, New Zealand & Pacific Islands