Preferred Tenderer for Replacement Research Reactor Announced

Issue Date:  06 May 2000
Issued By:  Leighton Holdings Limited

Please find attached copies of media releases made today by both the Minister for Industry, Science and Resources and ANSTO in relation to the announcement of the INVAP alliance as the preferred tenderer for design and construction of the replacement research reactor at Lucas Heights.

The alliance comprises INVAP SE, Evans Deakin Industries Limited(Evans Deakin) and our subsidiary John Holland Construction & Engineering Pty Ltd (John Holland). The project is expected to have a total cost of $278.5m (in 1999 dollars).

INVAP will supply the nuclear research technology while John Holland and Evans Deakin have formed a joint venture to undertake design and construction work for facilities associated with the project. The value of this work is expected to be in the order of $140m. John Holland's 60% share of the joint venture is expected to be worth approximately $85m.

A J Moir COMPANY SECRETARY

Preferred Tenderer for Replacement Research Reactor Announced

Issue Date: 6 May 2000
Issued by: Senator Nick Minchin, Minister for Industry, Science and Resources

The Minister for Industry, Science and Resources, Senator Nick Minchin, today announced the preferred tenderer for the design and construction of the replacement research reactor at Lucas Heights.

The preferred tenderer is the Argentinian company, INVAP, in alliance with Australian companies, John Holland Construction & Engineering Pty Ltd and Evans Deakin Industries Limited.

"While the existing HIFAR reactor continues to be safe, it was commissioned in 1958 and is now technologically obsolete. A replacement reactor is required so Australia can continue to benefit from radioactivity in the areas of medicine, environment, industry, mining, agriculture, science and the national interest," Senator Minchin said. "After a tender process that has been certified as rigorous by two separate audit groups, ANSTO has selected INVAP as the preferred tenderer as its bid offered high performance for both neutron beam facilities and irradiation facilities, together with the best building layout.

"In teaming with two reputable Australian partners, INVAP also offered the highest value added local content of 53 percent.

"The bid has met the stringent international guidelines on nuclear safety.

"INVAP has a solid track record constructing research reactors, with five constructed around the world over the past two decades. Argentina has ratified the Non-Proliferation Treaty and is are responsible and active participant in the activities of the International Atomic Energy Agency. Argentina has six research reactors in operation, while it produces around 1O per cent of its electricity from nuclear power.

"INVAP's bid was within the budget for the reactor facility and the final contract will not exceed $278.5 million (in 1999 dollars)."

ANSTO will now enter into pre-contract negotiations with INVAP, to be followed by detailed design and site works, with construction likely to commence early in 2002. The reactor is scheduled to be commissioned by September 2005.

The construction of a replacement reactor was unanimously supported by both the Coalition and Labor members of the Parliamentary Public Works Committee in August 1999.

"The safe use of radioactivity has great benefits for Australia in medicine, industry and research. We are committed to seeing Australia has a safe replacement research reactor by 2005," Senator Minchin concluded.

Contact:
Steve Ronson, Senator Minchin's office,
02 6277 7580

Professor Helen Garnett, ANSTO,
0416 222 000
Internet address: www.ansto.gov.au

Preferred Tenderer for ANSTO's Replacement Reactor

Issue Date: 6 May 2000
Issued by: ANSTO

The Australian Nuclear Science and Technology Organisation (ANSTO)announced today that the Argentine company, INVAP SE, in alliance with John Holland Construction & Engineering Pty Ltd and Evans Deakin Industries Limited, has been selected as the preferred tenderer for the replacement nuclear research reactor which is to be constructed at ANSTO's site at Lucas Heights, near Sydney.

The announcement follows an exhaustive evaluation of offers from the four companies which had pre-qualified to participate in the tender.

In making the announcement, the Chief Executive of ANSTO, Professor Helen Garnett, said "The reactor satisfies the condition precedent of meeting all documented safety requirements and will deliver high performance for both neutron beam facilities and irradiation facilities."

Professor Garnett added, "The replacement reactor will ensure that, for many years to come, all Australians will be able to benefit from reactor operations in areas such as nuclear medicine, the environment, industry, science, education and government."

Professor Garnett said that INVAP SE, is a State Corporation that has links to the Argentine National Commission for Atomic Energy. INVAP's business interests span nuclear technology, space technology, medical therapy, and environmental technology.

Professor Garnett went on to say that the offer from INVAP was within the budget for the reactor facility, and that the parties will now enter into pre-contract negotiations.

Pam Keenan
COMMUNICATIONS MANAGER
(02) 9717 3770
0418 284 813