Thiess Joint Venture Awarded Major Telecommunications Contract in Indonesia

PT Thiess Contractors Indonesia (a subsidiary of Thiess Contractors Pty Limited) in a Joint Venture with Kopnatel has been awarded a AUD$200M telecommunications contract in Central Java, Indonesia by PT Mitra Global Telekomunikasi Indonesia.

This is the largest single contract awarded as part of the AUD$925M project for the implementation of a telecommunications network into Central Java by March 1999.

The contract awarded to Thiess requires the installation of more than 300,000 customer access telephone lines. This will involve the complete design, procurement, installation and commissioning of the main cable, including ducts, copper and fibre optic cable, and local telephone hookup to businesses and residents.

Thiess Contractors' Managing Director, Mr Martin Albrecht, said the contract emphasises the company's ability to adapt its skills and resources across a range of industries.

"The contract forms part of our long term strategy to build on existing skills and diversify into other markets," he said.

Thiess' current workload in Indonesia includes large scale mining, industrial and resource projects which demand skills in project management, logistics and planning, and the management of design and procurement, all of which are relevant to this contract.

"We look forward to working with major Indonesian and international investors, including Telstra, to deliver what is a significant portion of Indonesia's telecommunications infrastructure," said Mr Albrecht.

PT Thiess Contractors' Manager Indonesia, Mr David Stewart, said that the contract reinforces Thiess' commitment to Indonesia over the past ten years.

"The contract is a significant addition to the company's already substantial work in hand in Indonesia, which at 30 June 1996 stood at AUD$150M," he said.

Thiess has projects underway in Kalimantan, Java, Sumatra, Sulawesi and Irian Jaya.

PT Mitra Global Telekomunikasi Indonesia (MGTI) is the franchise holder to supply and operate the local telephone network in Central Java. The corporation's ownership comprises 30% Indosat, 20% Telstra, 15% NTT Japan, 32.5% Infotel, 1.25% Sumitomo Corp and 1.25% Itochu.

Central Java lies approximately 600km east of Jakarta, Indonesia's capital, and has a population of 32 million. Currently 1% of the population (1 line per 100 users) has access to telecommunications facilities. This figure is likely to increase significantly to between 7 - 10% during the next decade.

Central Java has a 'sister state' relationship with Queensland, and its capital Semarang has a 'sister city' relationship with Brisbane.

Thiess will employ a local workforce of up to 2000 people, both direct employees and subcontractors.

Work will commence immediately and is planned for completion in December 1998.

Issued by: Thiess Contractors Pty Limited
ACN 010 221 486

For further information:
Mr Martin Albrecht, Thiess Contractors Pty Limited, Managing Director,
Ph: (07) 3275 8500

Mr Ray Wilson, Thiess Contractors Pty Limited, General Manager, Development & Technical Services,
Ph: (07) 3275 8500