Leighton-Kumagai JV Awarded HK$1.1 billion (A$181 million) Aqueducts Project in Hong Kong

Issue Date:  16 June 1997
Issued By:  Leighton Asia Limited

Leighton Contractors (Asia) Limited, in joint venture with Japanese contractor Kumagai-Gumi Co Ltd, was today awarded a HK$1.09 billion (A$181 million) contract to design and construct two aqueducts in the New Territories, Hong Kong for the Water Supplies Department of the Hong Kong Government. Leighton's share is HK$545 million (A$90.5 million).

The contract involves the construction of an 11.9 kilometre, steel lined treated water aqueduct and a one kilometre raw water aqueduct between Tai Po and Butterfly Valley as part of the Metropolitan Area and North Eastern New Territories water supply project.

The contract also includes site formation works, construction of access roads, mechanical and electrical building services works. Work will commence immediately and the project is scheduled for completion in 2000.

Leighton Contractors (Asia) Limited is a division of Leighton Asia Limited. This new contract brings Leighton Asia Limited's uncompleted work in hand to HK$2.93 billion (A$488 million) and re-affirms the company's commitment to Hong Kong after June 30.

Managing Director of Leighton Asia Limited, Mr John Faulkner, said that operations in Hong Kong contributed around 70% of the company's revenue, and he was confident of achieving similar performance levels after 30 June.

"There is no shortage of construction opportunities in Hong Kong. The need for infrastructure, such as the aqueducts project, will continue.

"We have the technical skills and management capacity to sustain a high workload in Hong Kong and we have a well deserved reputation for major civil engineering projects in the region," Mr Faulkner said.

"Our current work in hand includes a number of projects that will be completed well after the handover," he said.

Leighton Asia Limited, a division of Australia's largest construction group, Leighton Holdings Limited, has been successfully operating in Hong Kong since 1975. It has become one of Asia's largest broad-based construction contractors, with expertise in all aspects of civil, marine, building and foundation engineering and construction. It also undertakes contract mining in selected markets.

In addition to Hong Kong, Leighton Asia operates in Malaysia, Thailand, Vietnam, the Philippines and China and has over 5,000 employees throughout the region.

Issued by: Leighton Asia Limited

For further information, please contact:
In Hong Kong
John Faulkner
Managing Director
Leighton Asia Limited
Phone: (852) 2823 1111

In Australia
Matt Sullivan
Manager, Corporate Communications
Leighton Holdings Limited
Phone: (612) 9925 6666