Germany’s Bilfinger+Berger, together with Hong Kong and German partners, is set to build the US$340M Cross City road tunnel in Sydney, after the group was named preferred bidder by the New South Wales government in Australia.

The team, comprising Bilfinger’s Australian subsidiary, Baulderstone Hornibrook, Hong Kong’s Cheung Kong Infrastructure Holdings and Deutsche Bank, beat off a stiff challenge from rival groups Multiplex and Transfield.

The consortium is expected to sign its 30-year design-build-finance-operate concession with the New South Wales state government by the middle of this year. Construction of the 2km twin tunnel, linking Darling Harbour with the eastern distributor would start in early 2003. Completion is due by early 2005.

Cheung Kong Infrastructure, owned by billionaire Li Ka-shing, said it expects to achieve up to a 20% return from its 50% ownership of the development consortium.

Announcing the selection of the Bilfinger+Berger team, NSW roads minister Carl Scully said 300m has been added to the length of the tunnel to boost the tunnel’s capacity by an extra 17,000 vehicles a day. The increase means the tunnel operators are set to reap US$8.2M a year if the tunnel handles the forecast 95,000 vehicles a day by 2006.

But the cost of the scheme has risen by US$127M following a raft of changes to the original proposals. These include the additional 300m, plans to make the tunnel 30m deeper at its eastern end to pass under the eastern distributor road and the cost of an additional extra lane on the western distributor road.

Mr Scully said: "The modified proposal will virtually eliminate disruptive construction activity in William Street, while providing better traffic flow and connections to the general road network."

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Cross city road tunnel in Sydney