Prime Minister StartS Construction for New Defence Headquarters near Bungendore, NSW

Prime Minister John Howard today launched construction for the Defence Headquarters Joint Operations Command (HQJOC) facility near Bungendore, NSW.

Mr Howard used a ceremonial spade to “turn the first sod” at the 220-hectare site, on former sheep-grazing land.

Mr Howard said that the new facility “could not arrive at a better time for Defence or the nation”.

“This new headquarters will bring together for the first time all the key elements necessary for the planning and command and control of Australian Defence Force operations and other designated activities - at a time of unprecedented military operational activity,” Mr Howard said.

Guests at the ceremony included the Chief of the Defence Force (CDF), Air Chief Marshal Angus Houston, representatives of the consortium carrying out construction, and local dignitaries and landowners.

The HQJOC contract is significant for its use of private financing arrangements to construct and maintain an Australian Government facility.  Praeco Pty Ltd, a consortium comprising Leighton Contractors Pty Limited and ABN AMRO Australian Limited, won the contract to build the facility and to provide a range of support services over a 30-year term.

Under these private financing arrangements, Defence will pay Praeco an annual service payment, commencing after the facility is completed in July 2008.  The first full-year payment will be $39.99 million in 2009-10. The net present value of the 30-year contract for the new headquarters and supporting services to be provided by Praeco is $572 million.

Leighton Contractors has begun construction of a three-kilometre primary  access road linking the headquarters site to the Kings Highway between Bungendore and Queanbeyan.  Earthworks on the main site will start soon.

The project is on course to deliver a fully-operational HQJOC facility by the end of 2008.

The new integrated structure for the HQJOC will improve Defence command and control.  It will merge the strategic and operational levels of ADF planning, and enable better planning and integration with other government departments and agencies when required.

The tender evaluation to select a Prime System Integrator to deliver, install, test and commission the 45 Command, Control, Communications, Computing and Intelligence (C4I) Systems required for HQJOC is nearing finalisation. The successful tenderer is expected to be announced soon.

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