1000 Victorian jobs have been secured today after Victorian-based company Tyco Water was awarded a $150 million contract to build 84 kilometres of pipe for Victoria's Desalination Project.
Tyco Water will build the pipe at its Somerton factory creating 50 new jobs and securing 50 existing jobs, while BlueScope Steel will provide the majority of steel for the pipes protecting around 900 jobs at its Hastings facility.
Water Minister Tim Holding said he was delighted that the first contract awarded by AquaSure, the consortium that will build the desalination plant and associated infrastructure, would benefit Victorian manufacturing and Victorian jobs.
"The Brumby Labor Government is building Australia's largest desalination plant to turn sea water into drinking water so Victoria does not run out of water," Mr Holding said.
"The desalination plant will be operational from the end of 2011 and is critical to securing water supplies for Melbourne, Geelong and towns in Western Port and South Gippsland. I expect this project and other water projects like the Sugarloaf Pipeline will see our water storages begin to recover in 2012 and restrictions progressively eased.
"At the same time as securing our water supply, during construction of the desalination project we are securing 1700 direct jobs and as many as 3050 indirect jobs in a tough global economy.
"Construction of the Victorian Desalination Project is expected to inject $1 billion into the Victorian economy and using Victorian and Australian companies wherever possible is an important aspect of developing this critical water project."
Tyco Water, Australia's largest pipe manufacturer, will produce around 6200 straight pipes for the pipeline which will transfer water from the plant site near Wonthaggi to Melbourne's existing water network near Cardinia Reservoir.
Last year's $40 million expansion of Tyco's facility to produce larger-diameter pipes has helped it secure contracts for major water infrastructure projects across Australia.
Tyco Water has worked on a number of projects for the Brumby Labor Government's Water Plan including the Sugarloaf Pipeline, Goldfields Superpipe and Wimmera Mallee Pipeline.
Mr Holding said he was pleased that BlueScope Steel would produce around 80 per cent of the steel for the pipes.
"It is great news for Victoria that the majority of steel will be produced here," he said.
The Brumby Government reached financial close on the contract with AquaSure consisting of Suez Environnement, Degremont, Thiess and Macquarie Capital Group last week.
AquaSure will begin construction on the desalination project in October, which will include the plant at Wonthaggi, the transfer pipeline, underground power and renewable energy projects.
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