The firm has been tapped for the development of a new $800 million defence training area as part of a joint military initiative between Australia and Singapore, Defence Minister Linda Reynolds has announced.
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CPB Contractors has secured a $23.5 million contract to deliver the first phase of works for a new defence training area near Greenvale in north Queensland.
Upon completion of the development phase of the contract, CPB Contractors will then be tasked with developing facilities valued at approximately $800 million, with the work expected to commence in mid-2022.
The project forms part of the Australia-Singapore Military Training Initiative (ASMTI), which aims to deliver advanced military training areas in central and north Queensland that will house training exercises involving the Australian Defence Force and the Singapore Armed Forces (SAF).
The development is expected to generate employment opportunities for the local community, with the workforce projected to peak at 350 workers.
“These advanced training areas being delivered under the ASMTI will benefit the ADF and the [SAF], while enhancing our bilateral relationship and providing significant local economic opportunities for north Queensland,” Minister for Defence Linda Reynolds said.
“When this initiative reaches maturity, up to 14,000 SAF personnel will conduct training in central and north Queensland for up to 18 weeks a year for 25 years, which will provide enduring economic benefits to the region.
“This initiative will be key to bolstering growth and supporting local jobs in north Queensland as the economy continues to recover from the COVID-19 pandemic.”
Minister for Defence Industry Melissa Price also reflected on the expected benefits of the project for the community, revealing that CPB Contractors has committed to sourcing approximately 90 per cent of work from the north Queensland region surrounding the proposed training area.
“This is a massive investment that will ensure local business can take advantage of the opportunities arising from construction of the new defence training area,” Minister Price said.
“CPB Contractors has also committed to sourcing four per cent of the contracted price from Indigenous enterprises and at least 4 per cent of the full-time work force from Indigenous Australians.”
Herbert MP Phillip Thompson OAM added, “This news comes at such an important time as the local economy continues to recover from the impacts of the COVID-19 pandemic.
“CPB Contractors will soon begin engaging with local industry, with initial design for works commencing early next year.
“I encourage local businesses to be ready to benefit from the opportunities this initiative will provide.”
Townsville-based senator for Queensland Susan McDonald said the project is part of the federal government’s broader effort to support local industry.
“This initiative is already delivering significant economic benefits for Queensland through the ASMTI,” Senator McDonald said.
“This will only continue to increase when construction commences in mid-2022.”
The government has invited local businesses to submit proposals for other early works packages to be delivered between 2020 and 2022, which include fencing and signage, contamination remediation, and construction of firebreaks.
Market sounding proposals for the early works packages — valued at between $50,000 to $4 million — will be accepted until 31 December 2022.
[Related: Defence awards contract to Perth SME]