Engineering and construction group Decmil (ASX:DCG) has been awarded a $98 million contract to build stage two of the Albany ring road project in Western Australia.
The stage two contract is valued at $98 million, and adds to the previously awarded stage 1 contract, worth $55 million. The total value of the Albany project is now $154 million.
The project consists of an 11.5km freight route, which will extend south from the Menang Drive and Albany Highway intersection, running parallel to Link Road and connecting to Princess Royal Drive.
The new road will be constructed around the city of Albany, linking to existing roads and improving access to the Mirambeena industrial area.
Decmil has been on site in Albany since October 2020, while the total contract is expected to be completed in late 2024.
“In addition to delivering quality work within budget and on schedule, the project has also generated significant training and indigenous participation,” said chief executive officer Rod Heale.
Meanwhile, Decmil has revised its debt arrangements with PURE Asset Management and the Franco controlled Horley to reduce the coupon rate and extend the loan maturity.
Mr Heale said the modified loan terms reflect Decmil’s long-term outlook and enhances its funding certainty, as Decmil builds its order book with new contract awards.
“These new terms will allow Decmil to progress its positive trajectory, as we grow our revenue base and efficiently complete our current suite of projects.”
Shares are trading 23.7 per cent higher at 12 cents.