Chinese government-owned firm in bid to build Hobart stadium

Original source (on modern site)

A subsidiary of China's state-owned construction mega-company has been selected as one of two firms to tender for the right to build Hobart's new waterfront stadium.

Constructure Joint Venture and BESIX Watpac have been selected to take part in the tender process for the $1.13 billion Macquarie Point Stadium, after success in the expression of interest phase.

One partner in Constructure Joint Venture is China Construction Oceania, the Australian-based subsidiary of the Chinese government-owned China State Construction Engineering Corporation.

Constructure Joint Venture also includes Italian firm Webuild S.p.A, and McConnell Dowell, who built Hobart's Bridgewater Bridge.

The China State Construction Engineering Corporation has "38 second-tier subsidiaries, 8 listed companies, and more than 360,000 employees", according to its website.

China Construction Oceania is also involved in the construction of Victoria's North-East Link project.

The ABC revealed earlier this week that BESIX Watpac was one of two firms set to proceed to the request for tender stage.

BESIX Watpac was also selected by the Queensland government this week to be one of two final tenderers for the proposed Brisbane Stadium.

The interior of One New Zealand Stadium, in Christchurch.  (Supplied: One New Zealand)

The Australian-based firm was involved in the construction of the recently completed $600 million stadium in Christchurch, New Zealand.

The Tasmanian government hopes to award a contract to build the stadium by the end of 2026.

The stadium is expected to be completed by the end of 2030.

However, it will not be ready to host AFL fixtures until the start of the 2031 season.

Tender process to test approach, capability and local involvement

Minister for Macquarie Point Urban Renewal Eric Abetz called the selection of two tenderers "another important step forward for the Macquarie Point Multipurpose Stadium".

"We have seen strong interest from major contractors capable of delivering a project of this scale and complexity," Mr Abetz said.

Earlier this week, Macquarie Point Development Corporation chief executive Anne Beach declined to reveal how many companies had expressed interest in the build, but told reporters that multiple companies had.

The first stage of the tender process will see the government seek "covering delivery approach, capability, commercial settings, program and local industry participation".

Mr Abetz indicated he was keen on pursuing opportunities for local businesses and workers in the build.

"We are delivering for Tasmania by turning a wasteland into a year-round events and function precinct that will provide benefits for all Tasmanians," he said.

Macquarie Point Development Corporation chief executive Anne Beach said international firms brought "the balance sheet, the risk management and the experience that helps us".

Ms Beach said she was confident Besix Watpac had the capacity to deliver on both the Brisbane and Hobart Stadiums, particularly given that the other submission was a joint tender. 

"They've done that so far, but we'll be scrutinising that very heavily in the next stage,"

she said.

Calls for local businesses to play a part

Earlier this week, the master plan for the Macquarie Point Site was unveiled, detailing planned commercial zones to the south of the stadium and a residential area to the north.

The stadium, which is a requirement of the deal for the Tasmania Devils Football Team, has received a $240 million contribution from the federal government and a further $15 million from the AFL.

It was approved by the parliament in December last year, after the Tasmanian Planning Commission (TPC) recommended it not be built.

Despite the TPC's recommendation, Tasmanian Labor last September reaffirmed its support for the project.

Labor spokesperson for stadiums and sport, Luke Edmunds, said the progress on the project was welcome, but expressed concern the stadium might be overlooked by major Australian firms vying to be a part of the Brisbane Olympic project.

Mr Edmunds also took aim at the Tasmanian government's track record on managing major infrastructure projects, following a series of delays and cost blowouts in the delivery of the two new Spirit of Tasmania ferries.

"You could hardly blame anyone for wanting to work with [the] Queensland government instead of Eric Abetz," he said.

For the state's peak construction body, engaging local businesses was a central concern.

Master Builders Tasmania chief executive Jenna Cairney said it was expected that Tasmanian firms would not be the main contractor, due to the scale of the project.

However, she said local workers should still be sought.

"It needs to be genuine deep engagement, looking at what and how Tasmanian businesses can contribute to this project."