The National Broadband Network (NBN) Co and Silcar Pty Ltd have reached an agreement that will enable the first large-scale deployment of optic fibre for the NBN.

 

The agreement covers construction worth $380 million over the next two years, with the option of a further two years at an additional value of $360 million.

 

It involves  construction of the fibre network in Queensland, New South Wales and ACT, representing almost 40% of the national construction activity planned over the next two years.

 

The NBN Co has expressed relief that the design and construction pricing agreed with Silcar falls within the NBN Co’s corporate plan.

 

The agreement follows the cancellation by NBN Co of the tendering process for the project after no bids were received with acceptable costings, and was reached after eight weeks of ‘intensive negotiations’ with Silcar, with the final detailed contract to be concluded by June 17.

 

"We selected Silcar based on objective criteria, and on their performance in the field as the construction company responsible for the rollout in the Armidale First Release Site. NBN Co's Head of Corporate Services, Kevin Brown said.

 

The agreement includes nine of the 19 NBN Second Release Sites previously announced by NBN Co – extensions to existing works in Kiama, Townsville and Armidale and new sites in Springfield Lakes, Toowoomba and inner northern Brisbane, Riverstone in western Sydney, Coffs Harbour, and Gungahlin in the ACT.

 

Silcar Pty Ltd is a 50/50 joint venture between Siemens Limited, a global leader in electrical engineering and electronics, and Thiess Services, a 100% owned subsidiary of Thiess Pty Ltd, Australia's largest mining construction and mining services company.