AUSTRALIA INDIAN BUSINESS COUNCIL NATIONAL CONFERENCE INFRASTRUCTURE BRUCE MUNRO

1. IABC 2010 CONSTRUCTION MINING AUSTRALIA INDIAN BUSINESS COUNCIL NATIONAL CONFERENCE INFRASTRUCTURE BRUCE MUNRO SERVICES

2. OUTLINE Introduction What do we define by Infrastructure About Thiess Australia’s Infrastructure Challenges India’s Infrastructure Challenges Future Outlook Hinze Dam, QLD

3. INTRODUCTION In early 2009 at the height of the GFC President Obama addressed the Congress and said, “History reminds us that at every moment of economic upheaval and transformation, this nation has responded with bold action and big ideas”. • infrastructure becomes a stop start policy response to economic problems • Which means a less than “best practice” delivery with resultant cost inefficiencies.

4. INFRASTRUCTURE – WHAT DO WE MEAN • TRANSPORT • road, rail, airport, port - goods to market, trade • UTILITIES • water, power, communities, sewerage – support industries and improve the quality of life • SOCIAL • schools, hospitals, universities, cultural, entertainment and recreational facilities • improve the quality of life and our standard of living. • Infrastructure is nation building and nation changing • To put it in perspective, +1B “middle class” consumers in the next 20 years.

5. ABOUT THIESS • Founded 1934 • Annual turnover A$6.5 billion (INR 25,000 CR) • Work in hand A$18 billion (INR 68,000 CR) • More than 18,000 employees • 230 current projects • Operations in Australia, New Zealand, Indonesia, India and UAE • Owned by Leighton Holdings Ltd Prominent Hill, SA

6. OUR CAPABILITIES Construction (50%) Roads Process Rail Building Tunnelling Mining (35%) Mine planning and optimisation Mine operation Beneficiation and materials handling Rehabilitation Services (15%) Utilities Waste and remediation Telecommunications Transport services Facilities management

7. AUSTRALIA’S INFRASTRUCTURE CHALLENGES • Infrastructure provides a foundation for social and economic interactions. • Large scale investment required to sustain development. • Prior to the Global Financial Crisis (GFC), there was a view that the Australian economy was experiencing capacity constraints. Epping to Chatswood Rail, NSW To build, or not to build: Infrastructure Challenges in the years ahead and the role of Governments”. Address to the Conference on the Economics of Infrastructure in a Globalised World: Issues, Lessons and Future Challenges. Ken Henry, Secretary Treasury 18 Mar 10

8. AUSTRALIA’S INFRASTRUCTURE CHALLENGES • The Government tasked Infrastructure Australia to conduct a national audit of the nation’s infrastructure. • The process revealed a systematic lack of long-term infrastructure planning, with major project proposals requiring significant development before they could even be assessed. • The minerals boom also demands significant infrastructure investment, such as dedicated rail lines and bulk export ports, and requires enabling Government legislation. • Infrastructure assets are typically large fixed assets with significant capital costs; they take a long time to construct and, are effectively irreversible. Lane Cove Tunnel, NSW To build, or not to build: Infrastructure Challenges in the years ahead and the role of Governments”. Address to the Conference on the Economics of Infrastructure in a Globalised World: Issues, Lessons and Future Challenges. Ken Henry, Secretary Treasury 18 Mar 10

9. AUSTRALIA’S INFRASTRUCTURE CHALLENGES • Working group called Infrastructure Australia was established by Australian Federal Government. Strategic Priorities: • Expand Australia’s productive capacity • Increase Australia’s productivity • Diversify Australia’s economic capabilities • Build on Australia’s global competitive advantages • Develop our cities • Reduce greenhouse emissions • Improve social equity, and quality of life, in our cities and our region

10. INDIA’S INFRASTRUCTURE CHALLENGES • Simply look at the numbers:-+ 10th 5 year plan (2002 – 2007) – Rs 9 lakh crore [A$240B]+ 11th 5 year plan (2007 – 2012) – Rs 20 lakh crore [A$526B]+ 12th 5 year plan (2011 – 2017) – Rs 40 lakh crore [> A$1T] • Thiess participation in mining activities • Contract with Abhijeet Group Nagpur for mining $800M • In negotiations with NTPC for Parki Barwadih • Other interests • Participated in bid for Sasan UMPP • Leighton has taken equity in toll roads and constructed, plus involvement in industrial residential and commercial Buildings, oil & gas and potential put part on power developments.

11. FUTURE OUTLOOK • We could ask the economists who have predicted 8 out of the last 3 depressions. Or we could use a bit of common sense. • A recent report for the Business Council of Australia on building Australia’s future infrastructure needs stated that “given the constraints faced by Governments, Australia may struggle to invest in the infrastructure we need for future growth”. • It also said that “it will be important to avoid the stop/start investment in infrastructure in the past, and ensure that we do not only invest in infrastructure in response to a crisis”. • If Australia stops investing in the infrastructure to make our cities work and to get our resources to market we will fall behind our international competitors and lose market share, even as our major customers in Asia pick up growth.

12. CONCLUSION • The economic imperative calls for consistent and continuous project implementation, including an assessment of project coordination. • Effective infrastructure development requires Government and private parties to demonstrate vision and determination, cooperating in the long-term planning and implementation of projects intended for the economic prosperity for all.

13. ROYAL NORTH SHORE HOSPITAL , NSW Thiess undertook the RNSH project together in a fully integrated Joint Venture. > The contract involves the financing, design, construction, operation (with the exception of the provision of clinical services) and maintenance of the facility for a period of 28 years. > This Public Private Partnership has enabled architects and planners to draw on the best ideas from around the world and deliver an expandable design that can grow and change in response to healthcare needs >

14. Thiess undertook the ECRL project together in a fully integrated Joint Venture. EPPING TO CHATSWOOD RAIL LINE , NSW > One of the largest publicly-funded infrastructure projects completed in NSW > 12.5km of underground passenger rail line > Two TBM tunnels, three underground station caverns, coffer dam construction through river in national park > Opened in 2009 and is fully integrated into Sydney’s CityRail network > Excavation of the rail tunnels took almost two years to complete > Now used by more than 12,000 rail passengers a day

15. The Project included the design and construction of Melbourne’s newest motorway between Mitcham and Frankston for the ConnectEast Group. Eastlink , VIC > The project involved construction of 45km of freeway, twin 1.6km tunnels under the Mullum Mullum Valley and 88 bridges, including 11 pedestrian bridges and three rail bridges > A dedicated precast facility was established at Morwell in the Latrobe Valley to produce the 22,000 precast items (noise walls, bridge beams, parapets and vent stack panels) > The project was Australia’s largest urban road development and was named Project of the Year at the 2008 National Infrastructure Awards.

16. // SUMMARY AIRPORT LINK , QLD Airport Link is the largestPPP project ever awardedin Australia. > Australia’s largest ever road infrastructure project > Comprises two tunnels and a new airport connection – two 5.1km tunnels and a 1.5km busway tunnel > Deepest section of tunnel is 55 metres > By 2026 Airport Link will carry 150,000 vehicles per day and the Northern Busway will carry one bus every 20 seconds

17. Part of Sydney’s orbital road network it involved the construction of a twin 3.6km tunnel plus 3.5km of bridge and road upgrades. Lane Cove Tunnel, NSW > The project also included two new lanes across the Lane Cove River, transit lanes on the Gore Hill Freeway, new ramps at Falcon Street, together with a new continuous cycleway and pedestrian path from North Ryde to Naremburn. > Seven roadheader machines were used to excavate the tunnels from access points at Marden Street in Artarmon, a mid-tunnel site and from Mowbray Road at Lane Cove.

18. AquaSure – Thiess, Macquarie,Suez Environnement and its affiliate, Degrémont – is financing, designing, building, operating and maintaining the project. VICTORIAN DESALINATION PROJECT , VIC > Reverse osmosis desalination plant, marine tunnels, 84km water transfer pipeline and 87km underground powerline > Operating and maintaining the facility for 27 years > Utilising the expertise of Thiess Tunnelling > Capable of supplying up to 150 billion litres of water a year – a third of Melbourne's annual needs – with capability to expand to 200 billion litres a year

19. The W2W Alliance participants have formed a strategic Program Alliance to delivery and commission the brownfield project. Metropolitan Wastewater Treatment Plant, WA > The odour control upgrade at Woodman point will not only reduce odour emissions by 50%, it will also save the Water Corporation about $660,000 each year in chemical costs > The program includes conceptual design, engineering, procurement, construction and commissioning services for capacity upgrades at wastewater treatment plants in the Perth metropolitan area

20. The Project is a key component of the Western Corridor Recycled Water (WCRW) project, the largest recycled water project in the Southern Hemisphere. Bundamba Advanced Water Treatment Plant, QLD > Thiess, in a joint venture with Black & Veatch and the Department of Infrastructure, was responsible for the design, procurement, construction and commissioning of the Treatment Plant. > It was built in less than 10 months, two-and-a-half times faster than the normal industry construction rate. > The project won the 2008 Global Water Intelligence Award for Water Project of the Year.