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LEIGHTONQ2 Second Quarter Update 08/09

Leighton Holdings Limited

In this issue 2009 Second Quarter Report This quarter’s fi nancial highlightsOur risk management strength explainedFeature article: Weathering the Perfect StormUpdates on 10 current projects

CITY OF DREAMS IN

MACAULeighton Asia, in joint

venture with John Holland and China State

Construction Engineering, has a contract to manage

the construction of the City of Dreams in

Macau for Melco Crown Entertainment Limited.

The City of Dreams will be an integrated entertainment resort

featuring entertainment venues, a wide variety of

accommodation (including Crown Towers, Grand

Hyatt Macau’s twin towers, Hard Rock Hotel and an

apartment hotel), regional and international dining

and world-class shopping. One of the entertainment

venues – The ‘Bubble’ theatre, shown here in

construction, will provide visitors with an immersive

multimedia experience based on the legend of the

dragons. The show is being designed and produced as

a ten-minute spectacular featuring special effects

and projected high defi nition video content.

FEATURE ARTICLEWEATHERING THE PERFECT STORM

Wal King shares his thoughts on

why he believes the Leighton Group is

well placed to ride out the turbulence

created by the global fi nancial crisis.

22009 SECOND QUARTER REPORT

CEO Wal King gives

an overview of the

result and the outlook

at half-year.

3Q2 HIGHLIGHTS

Key performance indicators for the

second quarter of 2009 fi nancial year.

NEWS & MEDIA RELEASES

COMMUNITY INVESTMENT

PROJECT FEATURES

Projects featured this quarter:

10 Kowloon Southern Link

12 Wynn Encore

14 City of Dreams

16 Off shore Oil & Gas Projects in India

18 Bina Refi nery Jamnagar

20 Palm Springs Residential Towers

22 Agra to Bharatpur Highway

24 Sugarloaf Water Pipeline

26 Kingsgrove to Revesby

Rail Quadruplication

28 Northern Hume Highway

Duplication

30 Callie Gold Mine

10In

sid

e..

. 5 32

34RISK MANAGEMENT STRENGTH

“Bill Wild, Leighton’s Chief Operating Offi cer, looks at our strategy.”

1

Leighton Holdings Limited is the parent company of Australia’s largest project development and contracting group. The Group’s companies provide construction, mining and operation and maintenance services to the infrastructure, resources and property markets. The Group is the world’s largest contract miner and its companies are active in Australia, Asia and the Gulf region.

Produced by Communications, Leighton Holdings LimitedDesigned by Frost*Design, SydneyPrincipal Photography by Kraig CarlstromAdditional Photography by Karl SchwerdtfegerPrint Management by MixIncPrinting by Geon

Leighton Holdings Limited ABN 57 004 482 982Head Offi ce472 Pacifi c HighwaySt Leonards NSW 2065 AustraliaT: +61 2 9925 6666F: +61 2 9925 6005www.leighton.com.auE: [email protected]

UPDATE

NEW PROJECT ANNOUNCEMENTS

The Leighton Group is continuing to win new work despite the slowdown in the global economy. Demand for the Group’s mining services remains solid with two major mining extensions awarded since 31 December.

Thiess has been awarded a US$1.5 billion extension in February at the PT Arutmin coal mines in Indonesia. Thiess Indonesia’s operations commenced at Satui in 1998, and at Senakin in 1989, with both operations being moved to a single contract in 2000. The extension to the existing ‘life of mine’ contract will see the operations on both sites ramped up over the coming months to increase production to 12 million tonnes of coal per annum and 120 million cubic metres of overburden per annum.

Thiess’ scope of work includes mine planning, overburden removal, coal mining and transportation, plus operation of the coal processing plants and barge loading ports.

In March, Leighton Contractors was awarded a $400 million extension to an existing mining contract at Orebody 23/25 by BHP Billiton. The contract extension at the mine will see HWE Mining, a wholly owned subsidiary of Leighton Contractors, continue to provide complete mining services at the operation until June 2013.

HWE Mining fi rst commenced operations at Orebody 23/25 in 1998. The mine currently produces 10 million tonnes per annum of iron ore and HWE Mining employs over 150 people at the mine. Orebody 23/25 is located near Newman some 360km south-east of Port Hedland in the Pilbara region of Western Australia.

For the Leighton Group, there will undoubtedly be some impacts from the global fi nancial crisis, however the company is well placed given its record level of work in hand. Wal King discusses the impact of the slowing global economy and the outlook for the Group in ‘Weathering the Perfect Storm’ on page 6.

2

2009 SECOND QUARTER REPORT

THE DIRECTORS OF LEIGHTON HOLDINGS LIMITED ANNOUNCED A 20% INCREASE IN PRE-TAX OPERATING PROFIT BEFORE IMPAIRMENTS TO $387 MILLION BUT A 56% DECREASE IN AFTER TAX GROUP PROFIT TO $111 MILLION DUE TO THE RECOGNITION OF $239 MILLION OF PRE-TAX ASSET IMPAIRMENTS. A FULLY FRANKED DIVIDEND OF 60 CENTS PER SHARE WAS ALSO ANNOUNCED BY THE DIRECTORS VERSUS A 50% FRANKED INTERIM DIVIDEND OF 60 CENTS LAST YEAR.

Chief Executive, Mr Wal King, said that he was disappointed to report a fall in profi t which was due to the write down of investments in ConnectEast, RiverCity Motorway, BrisConnections, Devine and Macmahon announced in January, and a reduced property development contribution.

“The operating result refl ected good contributions from the construction of infrastructure projects in Australia, the contract mining of iron ore and coal in Australia, and construction in the Gulf region through the 45% stake in the Al Habtoor Leighton Group,” said Mr King.

“Total revenue, including joint ventures and associates, was up 40% to $9.1 billion ($6.5 billion last year) while revenue from joint ventures and associates increased by 48% to $2.6 billion. The Group’s major markets generating revenue were infrastructure $5.2 billion, resources $2.5 billion and building and property $1.5 billion,” said Mr King.

“Work in hand as at 31 December 2008 stood at $37.5 billion which compares with $30.3 billion at 30 June 2008 and $26.7 billion at 31 December 2007. The order book was boosted by the award of some $14 billion worth of new work, extensions and variations during the period.

“The major construction projects awarded included the $4 billion Airport Link Project in Brisbane, the $721 million Royal North Shore Hospital in New South Wales, and $3.5 billion for the Dubai Pearl and $2 billion for the New Concourse 3 at the Dubai Airport in the Al Habtoor Leighton Group. New mining contracts or extensions were awarded at the Bayan FKP coal mine in Indonesia, and the Curragh North and Moorvale coal mines in Queensland,” he said.

“The Group’s longer term outlook remains solid based on a record level of work in hand, a strong competitive position and a forecast rebound in the Group’s core markets from the current uncertainty of the global fi nancial crisis. While the timing of recovery in the various markets will vary, the long-term outlook is positive and the Group is well positioned to take advantage of the opportunities that will be presented.

Continued over →

Leighton Holdings Limited recently released its half yearly results for

the 2008/09 fi nancial year.

LE IGHTON SECOND QUARTER UPDATE 08/09

WAL KING

CEO

31 Dec 2008 31 Dec 2007 %

$’000 $’000 Change

Revenue – Group 6,551,116 4,780,735 37%

– Joint Ventures and Associates 2,595,205 1,755,074 48%

Total Revenue # 9,146,321 6,535,809 40%

New Contracts, Extensions & Variations 14,051,455 12,347,103 14%

Value of Work in Hand # 37,532,775 26,657,038 41%

Profi t before tax 147,651 321,712 (54%)

Income tax expense (37,579) (70,989) (47%)

Profi t after tax 110,072 250,723 (56%)

Profi t attributable to minority interests 1,078 (473) 328%

Profi t attributable to members 111,150 250,250 (56%)

Earnings per Ordinary Share 38.2¢ 86.0¢ (56%)

Dividends per Ordinary Share 60.0¢ 60.0¢ 0%

31 Dec 2008 30 June 2008 %

Balance Sheet information $’000 $’000 Change

Total Capital and Reserves * 2,368,450 1,484,991 59%

Total Assets 7,770,675 6,464,227 20%

Cash net of recourse borrowings + (25,537) (81,848) 69%

Undrawn Facilities and Guarantees 988,634 1,216,241 (19%)

Profit before tax$million

133

163

246

322

148

04

/05

05

/06

06

/07

07

/08

08

/09

Work in Hand#

$million

1501

9

1481

1

2009

6

2665

7

37

53

3

04

/05

05

/06

06

/07

07

/08

08

/09

Total Revenue#

$million

3515

4696

5725

6536

914

6

04

/05

05

/06

06

/07

07

/08

08

/09

Profit attributable tomembers

$million

95 118

190

250

111

04

/05

05

/06

06

/07

07

/08

08

/09

3

Q2HIGHLIGHTSThe underlying strength of the Group’s core

business is still apparent, despite the impact

of asset impairments.

* Excludes minority interests # Includes the Group’s share of Joint Ventures and Associates + Excludes Leighton Notes and Limited Recourse Borrowings


“The total engineering construction market is expected to continue growing into 2009 based on the substantial capital works programs of the various State Governments and investment in mining and heavy engineering projects. Two consortia including Thiess and John Holland have been shortlisted for the design, construction, fi nancing, operation and maintenance of Victoria’s $3 billion Desalination Plant Project,” said Mr King.

“The Federal and the State Governments have ambitious infrastructure plans aimed at stimulating the economy and overcoming previous underinvestment. The fast tracking of funds from the Federal Government’s $8.7 billion Education Investment Fund and the $5 billion Health and Hospitals Fund should stimulate construction opportunities,” he said.

“The longer term outlook for commodity volumes remains positive despite a substantial reduction in prices. While recent cutbacks have been announced by some iron ore and coal producers, the fundamentals for long term growth and therefore for the Group are sound.

“In Mongolia, Leighton Asia secured a preliminary mining contract for the Ukhaakhudag coal project and has recently been awarded a $350 million mining contract over 6 years to remove overburden and mine coal. In February 2009, Thiess was awarded a US$1.5 billion extension at the PT Arutmin coal mines in Indonesia,” said Mr King.

“The Group further strengthened its fi nancial position during the period with the successful completion of a $700 million equity raising in September and a US$280 million private placement. The majority of the funds are being used to invest in plant and equipment which will primarily be used in the contract mining activities in Australia and Indonesia.

“As at 31 December, total assets were $7.8 billion and net assets were $2.4 billion. Gross cash is $800 million with short term borrowings of $183 million. Limited recourse borrowings stand at $772 million and undrawn facilities and guarantees were up to $989 million,” he said.

“For the 2009 fi nancial year the Group expects to report full year revenue approaching $19 billion and a good underlying operating result after tax of approximately $650 million. The Group is forecasting to report net profi t after tax of approximately $480 million, which includes the write down of investment values already recognised and to maintain the full year dividend at the same level as last year. The fi nal result and full year dividend are, however, subject to market conditions for the remainder of this fi nancial year,” said Mr King.

“We remain committed to our strategy of diversity and will continue to pursue opportunities to further diversify and grow the business in the longer term. These opportunities, combined with a rebound in the Group’s core markets, auger well for the next few years.

“Work in hand is expected to be maintained at around similar levels which should lead to revenue and profi t growth in the longer term. The Group expects to continue to earn a good return on shareholders’ funds and to provide positive returns to shareholders,” said Mr King.

A copy of the company’s “December Quarterly Update and Half Year Report”, including fi nancials, is available at www.leighton.com.au along with an archived webcast of the presentation to investors.

4

01

02

01 Mining operations continue to be strong in Indonesia.Thiess

02 A traditionally-dressed local couple pose in front of the fi rst Caterpillar truck assembled in Mongolia.Leighton Asia

2009 SECOND QUARTER REPORT CONTINUED


5

RISK MANAGEMENTSTRENGTHSTRENGTH

DUE TO THEIR SCALE AND COMPLEXITY, MANY LEIGHTON GROUP PROJECTS HAVE SUBSTANTIAL INHERENT POTENTIAL RISKS. From tunnelling under major cities, constructing high rise buildings and bridges, to mining underground or in open-cut pits, the potential for disaster is ever present. Primary among these are the potential to cause loss of life or injury for employees and the public, major disruptions to the community through structural or operational failure, and signifi cant loss

of shareholders’ funds through contractual or fi nancial exposure.Risk management is embedded in the company’s day-to-day business and is a critical

element of the Leighton Group’s successful overall strategy. While each subsidiary company operates autonomously and under a very competitive

business culture with a strict regime of probity protocols, they share a common approach to risk management which refl ects the Group’s approach to risk management over many years.

Leighton Holdings’ risk management process actively promotes initiatives to better identify, control and respond to potential threats.

Among the key risks are: – Safety in design and construction.– Tendering new work.– Project execution, including technical, productivity and commercial issues.– Market factors, including client risk.

Leighton Holdings provides guidelines and sets minimum standards for each of the operating companies’ risk management processes. It also undertakes business audits to review and report on the management of risk across the Group’s companies.

This approach has achieved consistent project outcomes which have contributed to Group profi tability.

The Group applies the same Enterprise Risk Management rigour to the management of longer-term and wider-ranging business and strategic risks. Each operating company is required to identify, assess and prepare treatments for potential strategic risks when they develop their business and strategic plans. These risks – and any opportunities they highlight – are presented to the Board and Group Executive. For example, each operating company is currently actively examining the impact of the global fi nancial crisis on its ability to fund and deliver infrastructure projects and is developing strategies to respond.

We take a similar approach to potential catastrophic risks – those scenarios that are very unlikely to occur but which could have serious consequences for the company. Leighton Holdings has developed a framework not only to identify those risks, but also to maintain and improve the Group’s planning for and response to a catastrophic scenario in the unlikely event it happens. We have processes in place to minimise the likelihood of catastrophic incidents and to improve our ability to deal with them. We support these processes with a comprehensive program of training and review.

Our success is largely measured by how well we anticipate, control and respond to risk.

One of the Leighton Group’s great strengths is its ability to manage and

deliver complex projects, says Chief Operating Offi cer Bill Wild.

BILL WILD

CHIEF OPERATING OFFICER

03LEIGHTON FOURTH QUARTER UPDATE

ON THE FINANCIAL MARKETS“The Leighton Group, like all businesses, is being been aff ected by the global fi nancial crisis where we’ve seen a whole lot of factors combine to create a perfect storm. The world is facing its most serious downturn in 60 years, as the US housing sub-prime crisis has evolved into a global fi nancial system breakdown, recession in advanced economies and signifi cant slowdown in emerging economies.

“Why has this happened? Because US banks lent money to people who didn’t have the income to service the loans to buy homes. Home prices were forced up, too many homes were built and when the merry-go-round stopped, lots of people fell off .

“Now, if the US banking system had better prudential regulations those loans would never have been packaged up as sub-prime debt. Banks wouldn’t have gotten burnt by having to write off those poor assets and we wouldn’t have a credit crisis. That’s why we don’t have as big a sub-prime crisis in Australia because our banks were better regulated and made commercial lending decisions.

“So now Leighton and everyone else is caught up in the middle of this perfect storm which, despite our strong underlying performance, impacted our recent results. The result was down mainly due to the impairment of listed toll road assets and associate companies. And in this volatile world we are experiencing, asset values are a big issue.

“In terms of the overall fi nancial market, it’s a bit like a major earthquake which started with the US sub-prime crisis and what we are now suff ering is the aftershocks. Those aftershocks will continue through this year and my belief is we’re now near the bottom, but you’d be brave to call the exact bottom of the cycle just yet. So I think the market will continue to be volatile for a while yet.

“However, whilst there is a negative economic outlook overall, there are anomalies. We still see signifi cant momentum in our business from the bottom up built on opportunities that are still emerging.

ON GOVERNMENT INFRASTRUCTURE SPENDING IN AUSTRALIA“There remains a full pipeline of opportunities for infrastructure projects. The engineering construction market is expected to continue growing in 2009 based on the substantial capital works programs of the various State Governments and investment in mining and heavy engineering projects.

“You’ve got to congratulate the Federal Government for demonstrating leadership with its response in terms of its stimulus packages and infrastructure. Infrastructure Australia, under Sir Rod Eddington, is of course moving forward with a list of priority infrastructure projects but the big question mark is, ‘Can the State Governments move quickly enough to be able to put those projects into the fi eld to create employment?’

“Infrastructure projects are notoriously diffi cult in terms of getting regulatory approval, getting engineering approvals and so on. This is going to take very positive action by the States to overcome.

“But it can happen if leadership is there. The Queensland Government has provided great leadership in taking projects into the fi eld and cutting through the red tape. That’s what is needed to get these projects off the drawing board and to have projects ‘shovel ready’ so that

work can start when the funding starts to fl ow. Continued over →

6LE IGHTON SECOND QUARTER UPDATE 08/09

Wal King shares his

thoughts on why he believes

the Leighton Group is

well placed to ride out the

turbulence created by the

global fi nancial crisis.

WAL KING

CEO

In an extract from a series of media interviews given after the recent Half Year results announcement, Leighton Holdings’ CEO, Mr Wal King, gives his view of the global fi nancial crisis, the state of the Leighton Group’s markets and the outlook for the future.

7

MONGOLIA

In February, Leighton Asia secured a A$350 million, six year mining contract for the Ukhaakhudag coal mine project in Mongolia.

Mongolia is the largest land-locked country in the world and is bordered on the north by Russia and on the south, east and west by China. With an area of around 1.5 million km2 – nearly the same as Queensland – and a population of around 2.7 million people, Mongolia is strategically positioned to be a major supplier of resources to China.

The mining sector is already Mongolia’s single largest industry, accounting for 20% of GDP and more than 40% of export earnings. Mongolia has massive amounts of coal with the Tavan Tolgoi deposit estimated to have reserves of around 6.5 billion tonnes.

Leighton Asia established its offi ce in Ulaanbaatar in August 2007, and is currently working on site at Ukhaakhudag undertaking the initial mine development works and has established a mining team that will commence the mining contract in March 2009. The contract works includes the removal of overburden and mining of the coal, plus provision of mining planning and engineering services.

Leighton Asia is well positioned to develop a contract mining business in Mongolia where little local expertise is available.

8

“The States also need to look at the best procurement models to get projects in the fi eld quickly and, in this environment, alliancing is probably the best model. Leighton Group companies have signifi cant experience in alliancing on road, rail and utilities projects and I believe this is the best way forward in the current climate.

ON MINING AND THE RESOURCES BOOM “There’s a lot of talk about the state of the resources market but some of the comments about declines in mining are over exaggerated. One blowfl y doesn’t make a summer and one mine closure in Queensland doesn’t signal the end of the mining industry. There are lots of anomalies in the current environment, but the mining industry in Australia is still very much alive and well.

“Iron ore remains strong on the back of BHP Billiton work. Coal volumes – particularly thermal – have stayed pretty strong over recent months but we’ve seen a level of slowing in coking coal. However, the longer term outlook for volumes remains strong despite the substantial reduction in commodity prices. And the Leighton Group gets paid for the volume it mines, not on the price so we think the outlook for contract mining remains solid.

“Some adjustments are going on in terms of high cost producers and that’s inevitable. But the Group’s operating companies work mainly for blue chip clients on low cost mines and the fundamentals for growth are strong. We therefore don’t expect the Group’s mining volumes to be signifi cantly aff ected in 2009 or beyond.

ON THE PROPERTY MARKET“The Australian property market generally has been hit hard by the global fi nancial crisis. Leighton Properties has been no exception and will make no contribution to profi t this year.

“The commercial and industrial property markets are expected to continue to feel the eff ects of the global fi nancial crisis for some time, primarily due to a lack of credit to support property transactions and a fall off in demand due to the impact on employment of the economic slowdown.

“Commercial property commencements are expected to fall until 2010. But they should still remain above long term averages because the market hasn’t seen the sort of overbuild that was recorded before the last property downturn.


WEATHERING THE PERFECT STORM CONTINUED

“Leighton Group

companies have

signifi cant

experience in

alliancing on road,

rail and utilities

projects and I

believe this is the

best way forward in

the current climate.”

WORK PIPELINE

“The Leighton Group has a very strong pipeline of work at the moment. To give this some perspective, when I started with Leighton we had turnover of around $17 million a year. This year our revenue will be $19 billion and our forward order book and our opportunities look strong,” said Mr King.

“Work in hand as at 31 December was at an all time high of $37.5 billion, up 24% since June 2008. Projects won since then have taken the work in hand to around $39 billion, and this doesn’t include our work beyond 5 years.

“Major new construction work includes $4 billion for the Airport Link project in Brisbane, $721 million for construction of the Royal North Shore Hospital in Sydney, $438 million for the Ocean Park and Lai Chi Kok tunnels in Hong Kong and, in February, a US$1.5 billion extension at the Satui and Senakin coal mines in Indonesia.

“We’re also very advanced on probably another four or fi ve billion dollars worth of projects. But as some projects come through the door others will be completed and the work in hand might peak and drop back for a while, but that’s not the end of the world.

“When I think of the way we’ve grown from $17 million a year to over $19 billion I know we’re in a strong position to keep our momentum going,” he said.

9

ON ASIA AND THE MIDDLE EAST“Whilst growth has slowed across Asia in recent months – like everywhere else – the countries of the region are well placed to recover quickly. China has instigated a massive A$900 billion stimulus package and put in place a range of pro-growth macro-economic policies.

“A core element of the package is construction focused which should benefi t steel demand in China and hence exports of Australia’s iron ore.

“Hong Kong’s strong fi nancial position provides scope for a fi scal stimulus and the Government has announced a package that includes signifi cant investment in infrastructure. Leighton Asia is well placed to participate in the delivery of that infrastructure.

“In Mongolia, which has massive coal reserves and is strategically located close to China, we see signifi cant opportunities (see breakout box).

“Indonesia remains primarily a resources related market for the Group and the country’s large, quality reserves of coal and its proximity to export markets should support existing work levels. In February, Thiess was awarded a US$1.5 billion contract extension for the operation of the Senakin and Satui coal mines in South Kalimantan.

“It’s very fashionable to predict the end of Dubai and people have been waiting for that to happen, but Dubai is not the Middle East. Dubai is a part of the Middle East as New South Wales is a part of Australia

“We continue to have a strong order book, despite a slow down in Dubai. We have a 45% stake in the largest construction company in the Middle East with the Al Habtoor Leighton Group and they had more than $11 billion of work in hand at 31 December.

“The Al Habtoor Leighton Group has more work on now, even after some cancellations, than it had on before. We’ve also expanded our services business in the Middle East with Thiess Services signing a 15 year waste management concession contract with the Abu Dhabi Government in February worth $475 million.

“We expect there may be some more cancellations but we also expect to be awarded more work. But as of today the cancellations that we’ve had are less than the new work that we’ve been awarded.

CONCLUSION“The long term outlook for the Leighton Group remains positive despite the short term uncertainty arising from the global fi nancial crisis. You really have to look through to the operating performance of the company; the revenue, the uncompleted work and the balance sheet, all of which remain strong.

“Total revenue was up by 40% to $9.1 billion at the half and will be up substantially for the full year. Our work in hand was a record $37.5 billion at 31 December. We further strengthened our balance sheet last year and still see plenty of opportunities across our core markets to carry the business forward.

“Once this perfect storm passes I expect the Leighton Group to emerge in an even stronger competitive position, well positioned to continue growing and providing good returns to shareholders.

11

THE KSL WILL CONNECT THE WEST RAIL LINE WITH THE EAST RAIL LINE, BETWEEN NAM CHEONG STATION AND EAST TSIM SHA TSUI STATION. THE KSL PROJECT IS DIVIDED INTO THREE MAIN CIVIL CONTRACTS, WITH LINK 200’S KDB 200 SECTION CONSISTING OF THE DESIGN AND CONSTRUCTION OF THE AUSTIN STATION AND A 1.1KM SECTION OF TWIN BORED TUNNELS. This successful project is drawing to completion and is anticipated to be handed over to the client on schedule in the second

half of 2009. The new four-level Austin Station is constructed within an internally braced perimeter of diaphragm walls with the track 20m below ground level. North of Austin Station is a 100m long section of cut and cover tunnel connecting to the adjacent tunnel contract. One of the important aspects to the construction of the station box and cut and cover tunnel works was maintaining traffi c fl ow along several busy roads that crossed the excavations.

The twin 1.1km long tunnel component of the project was constructed using a Herrenknecht slurry tunnel boring machine (TBM). This TBM created two 8m diameter tunnels, which were lined with precast segment rings, reducing the inside diameter to 7m. The tunnels start side by side at the south end of the station box before gradually reconfi guring to a stacked arrangement with one 7m above the other, beneath Canton Road, a very busy tourist and shopping area in Tsim Sha Tsui. At the south of Canton Road they unwound as they traversed a 250m radius turn through 90 degrees, to run beside each other to the retrieval shaft in Salisbury Road outside the Sheraton Hotel. The TBM initially drove the ‘up track’, which was the lower tunnel, reaching a depth of 30m below Canton Road. On completion of the up track the TBM was recovered at the retrieval shaft and then turned around to drive the ‘down track’ which, along Canton Road, was 7m above the up track and 7m below the road surface. The TBM handled the extremely variable ground conditions, including hard rock, decomposed rock, sand, alluvium material and marine deposits extremely well, with minimal impact on the adjacent structures.

The TBM successfully completed tunnelling in March 2008. By late April it had been retrieved for the second time, dismantled and handed back to Herrenknecht. John Holland was largely responsible for the TBM operation and management of the bored tunnels. An integrated TBM team worked two shifts – night and day – with a four-hour maintenance shift, generally in the early hours of the morning.

One of the major benefi ts off ered by Link 200 was changing the client’s original design concept in front of the prestigious Peninsula Hotel from a cut and cover construction to a continuation of the bored tunnelling past the hotel and over, and less than 2m away from, the existing MTR railway tunnels running below Nathan Road, into the retrieval shaft. This greatly reduced disruption to the surrounding businesses and traffi c, so much so that the local police and relevant government departments gave the project team an award for the management of traffi c on the project.

The project team initiated an integrated area safety management system for the project, setting out the various areas of operation, colour coding them, and identifying the teams responsible for each of these areas, from the individual responsible for each area (the site agent) through the senior engineers and foremen, down to the gangers. Everyday each of these teams produces a report on safety related issues which was circulated internally.

This system has now been adopted throughout the rest of Leighton Asia’s projects. Consequently, Link 200 was awarded the Considerate Contractors award by the Hong Kong Government in both 2007 and 2008 for safe and considerate management of the project. In late 2008 the project obtained the highest ever ‘DNV’ safety audit rating in Hong Kong. This international safety management system audit evaluates the project’s safety management systems and the condition of the site based on a six-monthly review. The audit system has been used on railway projects for about 10 years, so this is a signifi cant achievement.

The project recently won an environmental award for outstanding environmental management for design, use of recycled water, hydro-seeding stock piles and overall performance as a considerate neighbour. Link 200 was particularly alert to potential noise issues at various locations around the project, particularly in the area around the TBM launch shaft where all of the excavated materials exited the tunnels, and where all the tunnel lining supplies were delivered. An hydraulic noise enclosure was constructed there, permitting these activities to take place without disturbing local residents, even through 24 hour work days.

Success is primarily measured by client satisfaction. There are many new rail projects coming up over the next two or three years that MTR Corporation, who is not only the KCRC’s Project Manager for KSL, but is also responsible for all railway infrastructure in Hong Kong, will be tendering out. The successful outcome for this project will make the team a contender to be one of the contractors for these future projects.

LEIGHTON ASIA AND JOHN HOLLAND

KOWLOON SOUTHERN LINK Hong Kong’s Kowloon-Canton Railway Corporation awarded Leighton

Asia and John Holland, in a joint venture with Balfour Beatty

and Kumagai Gumi (called the Link 200 joint venture), a $358 million

design and construct contract for the Kowloon Southern Link (KSL)

project – KDB200 – in July 2005.

DAVID WESTWOOD

PROJECT DIRECTOR

I’ve been working in Hong Kong and in the region for the last 35 years. I joined Leighton Asia as Project Director for KSL, arriving on site about a year ago. We’ve been running pretty well all the way through. I like to think of myself as a conductor of an orchestra, everyone on the site operates and has skills in their specifi c area of expertise. My job is to bring them all together and make them operate as a team.


LEIGHTON ASIA

WYNN ENCORELeighton Asia, in joint venture with China State Construction Engineering,

has a $587 million contract to design and build a second, fully integrated

resort hotel for Steve Wynn in Macau.

STEVE WYNN IS THE WELL-KNOWN LAS VEGAS CASINO AND RESORT DEVELOPER WITH A HISTORY OF HIGHLY SUCCESSFUL HOTEL AND GAMING DEVELOPMENTS IN LAS VEGAS OVER THE PAST 20 YEARS. Leighton Asia started working with Mr Wynn in 2004 on the original Wynn Resorts and that project was a great success. Subsequently, Leighton Asia has been fortunate enough to negotiate three further contracts.

The latest of these is the Wynn Encore, a 42 storey luxury hotel with a fi ve level podium containing all the features associated with a high end facility – restaurants, casinos, retail and spa. The project began in June 2007 and is scheduled for completion in March 2010.

The site is confi ned and is immediately adjacent to the original property which operates 24 hours a day, seven days a week. It is accessed daily by 7,500 employees and 25,000 guests. The team is therefore in constant communication with the client to ensure that the resort customers experience a safe and pleasant environment. This has included the introduction of a special safety hoarding around the new construction works, treated with attractive landscaping and graphics.

One interesting approach to the construction of the development has been the introduction of a special jump form system covering the entire footprint of the hotel tower. A jump form incorporates a mechanized system to lift the formwork used to construct each fl oor of a building progressively.

Whilst this approach might be familiar in Australia it is quite innovative in this part of the world where jump forms are typically used on lift core walls only. It has been implemented using design technology from Australia, fabrication skills in China, and installation and operation by Macau and Hong Kong labour teams. It is a great example of Leighton Asia’s motto – international experience, local knowledge – and provides enhanced program security and a safer environment.

One of the reasons for Leighton Asia’s success on the Wynn projects is the close relationship that has been built with the Wynn Group. This relationship is transparent, with a high level of understanding and communication between the two teams.

For the original development, the objective set by Mr Wynn was to establish “the best gaming destination in Asia”. For the current project the aim is to raise the bar even higher and provide an even greater level of luxury and experience for Wynn customers.

This high level of expectation has been a terrifi c motivational factor for the team. They have enjoyed the challenge of working with a client who has a very clear vision of what he wants which is essentially a customer focused design and a building constructed to 5 star quality.

The Wynn Group appreciates Leighton Asia’s focused can-do attitude, which is very pronounced on this project. The project team has a high level of commitment, accepting every challenge whilst maintaining excellent quality and carrying out their works in a considered and timely manner.

As on any construction project the key performance indicators are time, cost and quality. To date, the project team has managed to tick all of those boxes. Looking to the future the team considers the key measure of its success will be maintaining Leighton Asia’s position as the contractor of choice for the Wynn Group.

MIKE CLARKE

PROJECT DIRECTOR

The most rewarding aspect of the job has been seeing the team develop and establish themselves as a strong, highly capable design-build group. At the outset, few of the team had been exposed to a real design-build environment and the associated challenges. This ability to adapt to change and still perform has been rewarded by Leighton Asia being the contractor of choice for the Wynn Group.

15

THE CITY OF DREAMS PROJECT, WHICH BEGAN IN SEPTEMBER 2006, IS A CASINO AND HOTEL COMPLEX OF ABOUT 620,000 SQUARE METRES THAT WILL BE A DRAW CARD ENTERTAINMENT AND HOTEL TOURIST DESTINATION IN MACAU. The base of the luxurious development will comprise a casino, a retail arcade, several well-known international food and beverage outlets, and some very special entertainment venues. The four deluxe towers rising out of

the complex will be between 28 and 35 stories high. They will provide hotel accommodation as well as apartment style accommodation.

Another high-profi le entertainment feature of the complex will be The ‘Bubble’ theatre. The Bubble theatre will be a multimedia experience running a ten-minute feature for visitors to the City of Dreams. The multimedia show will be based around the legend of the dragons, which actually consists of four separate dragons, each of which rules over one of the four seas. Lawrence Ho, Co-Chairman and Chief Executive Offi cer of MPEL, has given this a very high personal priority to bring visitors to a whole new level of entertainment experiences.

There are about 8,000 staff and workers constructing the City of Dreams at present. The workforce on the project includes about 800 staff . Approximately 7,500 of the overall workforce are from Macau, Hong Kong and China. A milestone of 2.5 million work hours without time lost to injury has just been reached which the joint venture partners are extremely pleased with. Maintaining the labour and staff safety is critical to the project team so handprint security governing entry into the site has been introduced. Around 200,000 workers have attended safety toolbox talks and safety inductions to date. The workers, who are largely without a safety culture background, are now very aware of the joint venture’s expectations, particularly in regards to personal safety equipment.

Motivating staff is one of the challenges of any construction project and is no diff erent on the City of Dreams. It relies on making sure the staff is focused, fi rstly on program and project turnover (the project has a total turnover of about A$2bn) then on key performance indicators, and room and zone handovers. An open management style at the project has been developed which is very important in ensuring the delivery meets a very tight deadline. Any delays to schedule need to be identifi ed early to allow prompt rectifi cation and trust in management is very important in achieving the deadlines.

Getting power on in early September 2008 was a great achievement for the project team, followed eleven days later by the fi rst group of chillers to air condition the casino. The City of Dreams features the fi rst privately owned substation in Macau. It has the capacity to power about 60,000 average Australian houses – the size of a large town.

Bates Smart and Leigh & Orange, who oversee a host of other specialist designers, head the design team. They have provided a great design solution that is not only innovative but functional and coherent. They have embraced the project and have been working with the joint venture team providing design updates and solutions as any construction issue arises.

The initial opening of City of Dreams will be in the fi rst half of 2009, featuring a spacious and contemporary casino, over 20 restaurants and bars, an impressive array of some of the world’s most sought-after retail brands, and The Bubble, a spectacular multi-media attraction, Crown Towers and the Hard Rock Hotel.

City of Dreams is MPEL’s fl agship property which will deliver a totally new entertainment and leisure experience in Macau. The project team is confi dent of delivering a high quality product that will exceed client expectations.

LEIGHTON ASIA

CITY OF DREAMSLeighton Asia, in joint venture with John Holland and China State

Construction Engineering, has a contract to manage the construction

of the City of Dreams in Macau for Melco Crown Entertainment

Limited (“MPEL”).MARK MORAN

PROJECT DIRECTOR

I have been in the building industry for about 35 years. I started out as an apprentice carpenter with EA Watts in 1973, so I come from a fairly strong trade background and have moved up through the ranks. I previously worked for Leighton Contractors back in the mid 80s as a project manager. I spent the last 16 or so years prior to joining Leighton Asia working with Baulderstone Hornibrook in Melbourne and Dubai. Getting on with my team and workers is my focus and the key to successfully getting on top of any project.

17

THE OFFSHORE OIL AND GAS CONSTRUCTION WORK LOAD IN INDIA IS DRIVEN BY TWO MAIN FACTORS. THE FIRST IS A DESIRE FOR INDIA TO BE MORE INDEPENDENT OF FOREIGN OIL RESOURCES. THE INDIAN GOVERNMENT IS SUPPORTING EXPLORATION AND DEVELOPMENT, AND SEEKING TO ENHANCE PRODUCTION FROM EXISTING SOURCES. The second is the heavy demand on port infrastructure which is currently driving an expansion of single point moorings (SPMs). SPMs allow

larger tankers to be brought in and quickly unloaded, therefore reducing the cost to import oil. India is growing quickly and needs the oil so this is a big cost saving measure for the government.

There are a limited number of clients in the Indian off shore oil and gas arena and strong relationships with those clients have been forged on the back of solid performance from the projects that Leighton International has delivered so far.

A highlight for the business over the last year has been winning the US$750m Pipeline Replacement Project 2 (PRP2) for the Oil and Natural Gas Corporation. PRP2 is located in the Mumbai high fi eld and involves the installation of 230km of off shore pipelines. A fl eet of 23 vessels has been deployed to work on the project in the fi rst season and the project has around 500 people off -shore and another 100 people on-shore. It is Leighton International’s biggest off -shore project at the moment and has helped put the company on the “off shore oil and gas map”. The oil and gas team are looking forward to delivering that project over the next three years.

Another major achievement has been the successful completion of a contract for Reliance, involving the installation of three SPMs. It was Leighton International’s fi rst contract for India’s largest private company, Reliance, and we’re very proud of that.

You have to acknowledge that off shore oil and gas work has a high degree of risk associated with it. Working over and under water, with a sophisticated spread of equipment and being subject to the vagaries of the weather has to be factored in. Leighton International

undertakes risk assessments, plans the work diligently, tests those plans, puts in place contingencies – all up front – before starting work. It’s a key component of Leighton International’s business style and it’s a vital part of the success of the off shore oil and gas businesses.

The current economic crisis has had some impact on India. For Leighton International the major impact has been on cash fl ows and they are monitored very closely. In terms of workload the crisis has shown limited signs of aff ecting the off shore oil and gas business but Leighton International continually monitors that as well. It is a dynamic market at the moment and you have to be dynamic to keep pace with it.

A key part of our off shore business is owning the right equipment to execute the projects. The pipe lay barge ‘Leighton Stealth’ was purpose-built three years ago for Leighton International and has been in continuous service installing pipelines, particularly for our SPM projects, ever since. It has been in operation in India, as far afi eld as the Black Sea and later this year it will operate in Saudi Arabia after undergoing a further upgrade. The company also owns the ‘Leighton Mynx’, a crane barge optimised for projects such as SPMs. These cost eff ective and state of the art vessels, along with a wide range of other equipment owned by Leighton, off er a competitive edge in the market.

Leighton International has delivered fi ve out of the six SPMs installed in India over the last three years. Clients are coming to the company because of their confi dence of delivery on similar projects. Leighton International is also highly fl exible, and although the company has found and fostered a niche market it is capable of working on a wide range of diff erent projects. We are accessible to clients 24 hours a day, seven days a week, and work very closely and openly with clients to come up with the best solutions for their requirements. This open approach is not so common in India and clients seem to really appreciate that from Leighton International.

Leighton International has a good level of off shore oil and gas work in hand and has strong relationships with valued key clients. The company has become an employer of choice, and also provides an attractive proposition for off shore oil and gas experienced Indians working abroad, who are keen to return to India. Leighton has an excellent and experienced team of off shore oil and gas people in India and is looking forward to a very bright future over the next few years.

RUSSELL WAUGH

OFFSHORE OIL & GAS PROJECTS IN INDIAThe Leighton India arm of Leighton International is very dynamic

and client focused. Made up of a young, can-do group of people

developing a lot of their own new work, they are setting a benchmark

for the off shore oil and gas industry in India.

RUSSELL WAUGH

DIRECTOR, OIL AND GAS

Russell graduated from the University of Western Australia with a mechanical engineering degree, before undertaking law degrees at Macquarie and later Deakin Universities. He has spent the last twenty years working in the oil and gas industry both on- and off-shore as a project engineer and project manager before taking on the role of General Manager for Leighton International’s offshore oil and gas business. Russell has been working for Leighton International for the last four years. “I’m motivated by challenge and success. I like to deliver quality projects safely and on time for our clients and I like to deliver a strong business performance.” Leighton International fi rst came to India about ten years ago but it’s only been in the last four years that the business has developed a strong presence in the offshore oil and gas sector. Leighton International is one of the largest contractors in the country at the moment in that sector. Two primary business streams are catered to: nearshore and single point mooring (SPM) installations and installing offshore pipelines and structures.

The submarine pipeline was completed within 30 days, requiring an average of 500m of pipe laid each day. The Leighton operation achieved this target successfully for the client.

The safety of workers was considered the project’s highest priority. Off shore oil and gas projects are some of the most complex and high risk projects and require extensive planning and preparatory work to achieve success. A full risk assessment was undertaken at the start of the project. Safety performance was driven by an incentive scheme along with training. In addition, the project mobilised two full-time doctors and support equipment to ensure rapid delivery of anyone requiring emergency treatment to hospital. The project team is very proud to have achieved no lost time due to injury.

The project management devised many programs to maximise the involvement with the local community. The most signifi cant was the implementation of a community care and health awareness program where the project team came together with the local community on a weekly basis to distribute water and food and provide free medical assistance from the project doctor.

The project was executed in a very environmentally sensitive area. The dredging and trenching works in preparation for the shore pull had the greatest potential for impact and these had to be undertaken in a very planned and systematic fashion to avoid disturbing the surrounding mangroves and wildlife.

At the onset of the project, very ambitious goals were set and the Leighton Management System was implemented to track and guide all of the key performance areas including cost, safety, environment, quality, community relations and the client relationship. The project went very well – on time and within the project’s targeted objectives, reinforcing Leighton’s ability to off er its clients value for money, certainty of outcome and performance in safety, quality and environment in this region.

19

THE PROJECT IS LOCATED ON THE NORTHWEST COAST OF INDIA IN THE GULF OF KUTCH. THE PROJECT CONSISTS OF THE INSTALLATION OF 15KM OF 48 INCH SUBMARINE PIPELINE AND 2KM OF 48 INCH ONSHORE PIPELINE TO DELIVER OIL BETWEEN TANKERS AND AN ONSHORE TANK FARM. THE OFFSHORE SINGLE POINT MOORING (SPM) TO WHICH THE TANKER CONNECTS AND THE PIPELINE END MANIFOLD (PLEM), LINKING THE PIPELINE AND SPM, ARE ALSO KEY PARTS OF LEIGHTON’S SCOPE.

The SPM, located 15km off shore, is a fl uid transfer point, enabling the safe transfer of oil between the tankers and pipelines and in this case features a mooring system with six anchor piles and anchor chains to provide tanker stability at the SPM. The PLEM, located on the seabed, connects the 48 inch pipeline with two subsea hoses joined at the buoy.

The project was undertaken by the Off shore Oil and Gas Division of Leighton International’s Indian operation for BORL, a joint venture company comprised of Bharat Petroleum and the Oman Oil Company on the back of a similar and very successful project for Bharat Petroleum completed in 2007 at Cochin.

The installation of the submarine pipeline began with a 2.5km shore pull, where a shore based 300 tonne winch attached to an 83mm cable pulled the 48 inch diameter pipe from the ‘Leighton Stealth’ pipe lay barge, located off shore. To minimise the drag on the bottom of the seabed and eliminate high friction forces, buoyancy tanks were attached to the pipe. The ‘Stealth’ was positioned in a tidal corridor for the pull. Despite the diffi cult currents and tidal conditions, the shore pull was completed in only fi ve days.

The ‘Stealth’ then moved towards the SPM location, continuing to lay pipe as it went. The ‘Stealth’ is like a fl oating production facility, continuously welding pipes onto the line through a highly effi cient welding process including non-destructive testing and a joint coating regime. The pipe is fed out the stern of the barge in a controlled manner through two large hydraulic track tensioners. This type of off shore pipeline installation is called the ‘s-lay’ method because as the pipe travels from the stern of the ‘Stealth’ to the sea bed the pipe’s profi le forms an ‘s’ shape.

LEIGHTON INTERNATIONAL

BINA REFINERYJAMNAGARLeighton International was awarded a $69 million contract for the

construction of a crude oil single point mooring (SPM) and pipeline

system in India by Bharat Oman Refi neries Limited (BORL) in March

2008. Practical completion was successfully reached in early 2009.

THOMAS DOCKRAY

DEPUTY PROJECT MANAGER

I’m a civil engineer and graduated from the University of Queensland. I started my career as a bridge designer before moving into construction and project management. After gaining considerable experience in the Australian market I embarked upon my career in the very challenging, but very rewarding, Asian market with Leighton International. I started in the Malaysian division before moving to the Indian business in 2006 and have had the opportunity to successfully deliver two projects in India. Achieving excellent results and leading a high performance team drive me. Leading a high performance team is more than just writing reports and checking the numbers. You have to set up the project with the right culture to enable members of the team to excel in their role, take responsibility for their actions and to gain their commitment.

THE PROJECT IS BEING CONSTRUCTED OVER A TWO-LEVEL EXTENDED UNDERGROUND BASEMENT CAR PARK AND INCLUDES A CLUBHOUSE WITH A SWIMMING POOL. GURGAON’S POPULATION HAS GROWN QUICKLY AS A RESULT OF INVESTMENT IN CALL CENTRES AND HIGH TECH INDUSTRIES OVER THE LAST TEN YEARS. THE PALM SPRINGS PROJECT IS A RESIDENTIAL COMPLEX DESIGNED TO HOUSE MIDDLE-CLASS INDIAN FAMILIES EMPLOYED IN THESE NEW INDUSTRIES AND

ASSOCIATED SERVICES, OR IN NEW DELHI, WHICH IS CONNECTED TO GURGAON BY NEW ROADS AND GOOD BUS SERVICES.The Gurgaon region has grown faster than the Indian Government’s expectations and so it is working to catch up with the area’s infrastructure requirements as well as posing challenges for local construction projects. Palm Springs’ daily requirement of 300,000 litres of water is either sourced from bores or has to be trucked in and, due to local power shortages, diesel generators on site have to provide power.

It is extremely diffi cult in India to procure quality plant and equipment. Leighton India has had to invest in basic plant and equipment including three hammerhead tower cranes, six hoists, tractors, scaff olding and a concrete pump. Because of this investment and the complex design, the Palm Springs project will take about 23 months to complete. Similar projects in India normally take three to four years due to the lack of mechanisation. It is not uncommon in India to see local builders pouring concrete eight-storeys up by passing it in large metal bowls, man to man, up scaff olding.

There are three months of ideal working conditions each year in Gurgaon. For a large part of the year the temperature can sit above 40˚C. In winter the temperature can drop to -5˚C and thick fog overhangs the city. There are also heavy monsoons where 300–400mm downpours, within one or two hours, are common.

There are up to 1100 workers on site each day with the project running 24 hours a day. 900 of the workers are housed on site in a purpose built village. 650 workers are fed three meals a day there. Working in India is very diff erent to working in a Western environment. Labour in India is generally unskilled and training by contractors is extremely rare. The majority of workers on the project are farmers who, after they plant their crops, turn their hand to construction while waiting to harvest. Leighton India conducted biometric testing of the labour on the Palm Springs project and found workers to have a signifi cantly smaller build than Australian workers, requiring equipment modifi cations and signifi cantly more labourers to undertake the work. This is due in part to their diet. The project canteen has been addressing food nutritional value while trying to maintain acceptable regional styles.

The 60 to 70 project management staff in the local site offi ce have formed a very tight team. They appreciate the disciplined company systems of Leighton India, their ability to participate and take responsibility for their work, and the training opportunities given. Two daily meetings allow the project status and the day’s activities to be reviewed, and the next day’s tasks to be outlined. The Palm Springs project is embracing the Leighton University program where Leighton-specifi c modules are added to university courses undertaken in India to produce graduates ready for Leighton International employment.

Leighton India maintains Leighton International’s high safety standards with clear lines of accountability, toolbox talks and job safety analysis. Project safety training is undertaken in Hindi to ensure worker compliance with the use of personal protective equipment such as hard hats, safety vests, boots and harnesses. A considerable amount of eff ort is spent by Leighton India on good housekeeping practices to improve safety, in direct contrast to many competitors. The local government safety offi cers, after touring Palm Springs, are making competitors adopt safety techniques that Leighton India employs, including installing safety nets, catch scaff olds, and safety screens to prevent falls from height. That is very rewarding for the team.


PALM SPRINGS RESIDENTIAL TOWERS Leighton International has been contracted to construct six residential

tower structures of up to 17 storeys containing around 230 apartments

within the Palm Springs’ 19 acre development for Emaar MGF.

The project is located in Gurgaon, about 40 minutes from the centre of

New Delhi, India.


MARK GRIFFITHS

SENIOR PROJECT MANAGER

I’ve been working in the construction industry for 20 years. I started off as a cadet with Leighton Contractors in Canberra constructing the Chinese Embassy. In those 20 years I’ve been involved with many diverse projects, from the Sydney Harbour Casino to shopping centres, from the Sydney Showgrounds to offi ce blocks and apartments. I’ve been working with Leighton India, part of Leighton International, for the last two years. My main motivation at work is excellence and innovation in construction. November is one of the most interesting times in Gurgaon because it is the wedding season and throughout this region there are around 17,000 weddings. The streets can be choked with wedding ceremonies. In April, which is pay review time for Leighton India’s employees, many of the younger single employees become very concerned about their job titles. Job titles are important to them because the higher their job ranking and status, the better chances of gaining approval from their prospective inlaws. The negotiation skills of the young engineers around this time are very impressive indeed.


THIS PROJECT HAS VASTLY IMPROVED THIS VERY IMPORTANT TOURIST AND TRADE LINK. A NUMBER OF NEW HOUSING AND INDUSTRIAL DEVELOPMENTS HAVE OPENED SINCE THE PROJECT BEGAN AND THE VALUE OF LOCAL PROPERTIES HAS INCREASED CONSIDERABLY.Despite the project being undertaken as a 50/50 joint venture, Leighton International was the lead partner, supplying the project manager and the lead project staff . OSE undertook the land acquisition component of the

project and dealt with the local authorities and community, which was a huge part of the project. Not only was the joint venture the EPC contractor, but it is also the concessioner to the National Highways Authority of India (NHAI), providing some project equity.

The project, though not technically demanding, included major excavations from borrow pits; constructing 96 new structures including 16 new minor bridges, 3 underpasses, and over 76 new culverts; traffi c signage and road markings to the asphalt pavement; street lighting and service roads in urban areas; drainage, minor landscaping and reforestation works; toll plazas, administration building, rest areas and bus shelters; and preparatory work, including relocation of all services and route clearance.

As part of the project earthworks, 1.6 million m3 of earth material was moved and 1.6 million tonnes of road surfacing materials delivered. There are few commercial quarries and batch plants in India, so the project was set up to be largely self suffi cient as far as material supply was concerned. The joint venture established a 250 tonne per hour three-stage crusher where up to 90,000 tonnes of crushed rock per month was produced. The resulting material was then brought to site and used in the project’s 160 tonne per hour hot mix plant, 260 tonne per hour wet mix plant, or 60m3 per hour concrete batching plant. The joint venture also undertook all of its own blasting, employing local specialists.

The project team workforce was 800 strong at its peak, with ten expatriates working on the project from Australia, the United Kingdom and Malaysia. The staff of 150 and


AGRA TO BHARATPUR HIGHWAYLeighton International has just completed rehabilitating and resurfacing

the existing road and constructing a second, adjacent carriageway

on a 45km section of the NH11 between Agra and Bharatpur, under an

engineering procurement and construction (EPC) contract with joint

venture partners Oriental Structural Engineers (OSE). The NH11 Highway,

in northern India, links Agra to Jaipur.

the workforce of between 300 and 600 were all locals. Some employees were housed in local towns, but the project had camp facilities catering for up to 400 workers.

Safety is still a developing priority amongst Indian contractors. Before being employed by Leighton International, many of the local staff with ten to twenty years’ experience had never had any formal safety training. The project thus required a full safety team to indoctrinate project employees into the Leighton International safety regime from scratch. This was very successful, with the project winning the Leighton International site safety performance award for 2008.

There were unusual aspects to this project from a Western perspective. Horse and cart or camels regularly delivered materials and these animals wandered around throughout the project. Close to the halfway point along the project route is a town called Fatehpur Sikri, which was the capital of India from 1571 to 1585. As a result, the project was dotted with religious artefacts. There were about 22 Hindu temples and four Muslim graveyards that had to be carefully relocated or resolved, with help from the local population and administration. The weather was also very diff erent with the unpredictable monsoon season.

The surrounding community has been living around a road with a maximum speed of 60–70kph. The upgraded road is now 110kph. The project realised the impact this would have on the safety of the local community and sent representatives to local schools to make the children aware of the new dangers and to teach safe behaviour. Local businesses were also approached to discuss the safety issue.

India’s Forestry Department is very infl uential. The project included removing around 12,000 trees. As a consequence the joint venture was required to plant approximately 36,000 new trees around the project. The project is also within the Taj Mahal exclusion zone which meant all of the project plant and equipment required emissions checks and the project also had to use more expensive high speed diesel, for heating rather than furnace oil, to conform to these environmental guidelines.

The NHAI are very happy with the quality and timeliness of the work now that the project has been handed over to the concessioner within the allocated timeframe. The NHAI currently have a roads program which involves over 32,000km of road being upgraded from single to dual carriageway. Of those 32,000km, 16,000km have yet to be tendered out, which means the potential for Leighton India, going forward, is enormous.

23

RICHARD WOOD

PROJECT MANAGER

I’ve worked for Leighton International for the last ten years, mostly in Malaysia, but the last three in India constructing the Flextronics Factory, before starting this project two years ago. Setting and achieving targets, both fi nancial and program, motivate me. I set my staff clear, progressively measurable and achievable goals. I’m also very personable. I know each of my staff individually and enjoy the coaching aspect of the job. Leighton International has undergone a phase of expansion recently which has meant a very large uptake of new employees. To a certain extent this has led to a dilution of the well-established Leighton International culture, but this is gradually being rebuilt. I try to bring the Leighton International culture to all my projects to ensure my workers are being properly trained and looked after. They will eventually come to understand that they’re working for a responsible company that will look after their interests in return for their hard work.


SUGARLOAF TEAM SHOWS TRUE COLOURS IN THE BLACK SATURDAY FIRES

The Sugarloaf Pipeline runs through some of the worst hit areas of the recent Victorian bushfi res. Alliance employees helped fi ght fi res and supported recovery efforts. They provided equipment including bulldozers, graders and water tankers to the Country Fire Authority (CFA) to use to control fi res in Toolangi and the Glenburn area. 14 pipeline alliance employees worked with CFA crews to dig fi rebreaks using graders and dozers to protect the Sugarloaf Pipeline Alliance compound at Glenburn and other private properties. Up to 120 alliance employees provided 24-hour assistance during the week to help control fi res under the direction of the CFA and the Department of Sustainability and Environment. The Alliance is continuing to supply equipment including water carts, loaders, graders, dozers, trucks and generators.

25

THE ALLIANCE, CONSISTING OF MELBOURNE WATER (THE CLIENT), JOHN HOLLAND, AND DESIGNERS SINCLAIR KNIGHT MERZ AND GHD, IS RESPONSIBLE FOR PLANNING AND ENVIRONMENTAL ASSESSMENTS, ENGINEERING AND DESIGN, COMMUNITY AND LANDOWNER CONSULTATION AS WELL AS PROJECT MANAGEMENT. THIS IS MELBOURNE WATER’S FIRST ALLIANCE PROJECT. THEY ARE UNDERTAKING IT AS AN ALLIANCE IN ORDER TO ACHIEVE ALL THE

APPROVALS REQUIRED AND COMPLETE THE PROJECT IN A TIGHT TIMEFRAME. THE PRACTICAL COMPLETION DATE FOR THE PROJECT IS 2010. After investigation of the irrigation system of the ‘Food Bowl’ agricultural area, the Victorian State Government determined that upgrading it would produce signifi cant water savings. They decided to undertake the upgrade and distribute water savings equally between farmers, the environment and Melbourne. The Sugarloaf pipeline is designed to pick up a third of the estimated annual saving of 225 gigalitres of water, capped at 75 gigalitres per annum, and deliver it to the Sugarloaf Reservoir for Melbourne.

Not only is the Alliance constructing the pipeline, but at Killingworth it is building a pumping station to lift the water through the pipeline to a second pumping station south of Yea, also being built by the Alliance. This second, high-lift pumping station will push the water through 50km of 1750mm diameter pipe up the Great Dividing Range. From the high point the water gravitates down to the Sugarloaf Reservoir through a 1404mm diameter pipe.

A high level tank will be constructed in the Great Dividing Range to provide fl ow control. This area is particularly diffi cult because it is very steep and heavily timbered country. At the top of the range, where the crossfall of the land is too steep, there is an 823m long tunnel being driven for the pipeline, through extremely hard rock. A tunnel boring machine (TBM) from Germany will bore the tunnel. Spoil from the tunnel will contribute to the project’s total earthworks of 400,000m3. Another signifi cant component of the project is the supply of power by SP Ausnet to run the pumps. The Alliance is constructing a Zone Sub-Station which, when completed, will be handed to SP Ausnet as an asset.

The project has involved clearing an 11km route through the Toolangi State Forest. The Toolangi State Forest vegetation off set management plan is providing compensation by purchasing a highly vegetated property to be vested back to Victoria as a protected area.

Apart from dust control and protection of waterways, environmental aspects being managed as part of the project include a range of bio-security risks associated with sheep, cattle, grapes and trees along the project route requiring the project team to strictly enforce bio-security procedures. During the clearing and grading vehicles are disinfected when moving between properties and when moving off site. The project teams are extremely vigilant that top soil is not moved between properties.

There are twelve federally listed and numerous state-listed species of protected fl ora and fauna found along the project route requiring careful management. The project team has made the fi rst sighting of the brown toadlet (Pseudophryne bibroni) in the region for 15 years and is providing habitats for it, with minimal impact on construction. Also, the Alliance team discovered the presence of the golden sun moth (Synemon plana) in a number of locations in the northern end of the project and is working with the state Department of Sustainability and Environment and the federal Department of Environment, Heritage and the Arts to manage and maintain its habitat during construction.

Seventeen environmental management plan approvals need to be achieved to allow pipe laying and pump station activities to get

fully underway. Currently pipeline assembly utilising internal and external welding is being conducted in some areas.

There has been some community opposition to the project either because water is being taken from the north of the divide or because the project impacts on property. The alliance has been working closely with this part of the community where possible, to address these concerns and ensure that all works are carried out in a responsible and ethical manner.

There are a number of key result areas on the project including cost, schedule, legacy, stakeholder relations, quality and functionality, safety and environment, cultural heritage and sustainability. Many of these have performance links back to fi nancial rewards as a part of the alliance principal of ‘gainshare’ for good performance and ‘painshare’ for poor performance. Melbourne Water is happy with the progress of the project to date and the eff orts of the team who believe the project will make a positive diff erence to Melbourne’s water security.

JOHN HOLLAND GROUP

SUGARLOAF WATER PIPELINE John Holland, as part of an alliance, has been awarded a $625 million

contract to construct the 70km long Sugarloaf Pipeline, linking

Australia’s Goulburn River, at Killingworth, to the Sugarloaf Reservoir

in Melbourne’s northeast.

ROB CRANSTON

ALLIANCE PROJECT MANAGER

I’ve been in the water and construction industries for about 40 years. I spent the fi rst 27 years with Melbourne Water. I left Melbourne Water to take up positions in Malaysia and Thailand. I came back to Australia and was project director for the City Link road project in Melbourne, then spent a little time with a consultant before moving onto the Eastlink project, looking after the Ringwood section and from there I moved onto this project.

THIS PROJECT IS THE LARGEST PROJECT BEING UNDERTAKEN BY TIDC AS PART OF THE NSW GOVERNMENT’S ‘RAIL CLEARWAYS PROGRAM’, REMOVING BOTTLENECKS FROM THE NSW METROPOLITAN RAIL SYSTEM AND ALLEVIATING INTERDEPENDENCIES, WHERE DELAYS ON ONE PART OF THE RAILWAY CAN CAUSE DELAYS TO ANOTHER PART. The additional tracks between Kingsgrove and Revesby will allow a complete separation of “all stops” and “express” services on the East Hills Line. Of the

Clearways projects, K2RQ is the largest at $431 million and is due for completion in 2013.The K2RQ Alliance is composed of TIDC (the client), Leighton Contractors (the principal

contractor), Maunsell Australia (civil infrastructure design), Sinclair Knight Merz (civil infrastructure design), MVM Rail (track construction) and Ansaldo STS (signalling and communications design and installation). The railway operator, RailCorp, is also an important part of the team.

The K2RQ Project involves building two new rail lines on a 7.5km section of the East Hills Line between Kingsgrove and Revesby, one track on either side of the existing tracks. The biggest challenge for the Alliance is the staging and sequencing of work whilst interrupting existing train services as little as possible. In order to give the civil constructors a footprint for their works, Stage 1 of the project involves moving the rail systems (such as signalling, very sensitive communication lines and eight high voltage and low voltage distribution systems) to a safe temporary position, away from construction activities. Stage 2, the civil construction (including earthworks, track work, ten new rail bridges and an extension of an overhead concourse and new lift at Revesby Station as well as the modifi cation of fi ve existing bridges), will then be undertaken over an 18 month period. Stage 3 will see the rail services relocated a second time to their fi nal and logical location. Stage 1 is now under way and the K2RQ workforce currently numbers around 250 people (expected to peak between 500 and 600 in 18 months).

The K2RQ Project is being undertaken in a very constrained corridor only 30–35m in width. The team works very close to trains travelling at around 100kph and there are live 33KV and 11KV power lines and a number of services in the corridor which are safety hazards. Systems and safety training are in place to ensure workers have the required competency to work in this corridor. Additionally, the three distinct project stages have very specifi c safety hazards, requiring tailored safety training.

The attitudinal component of the Alliance’s safety approach involves maintaining an open reporting culture between management and workforce in terms of identifying and dealing with safety issues, including generating personal practice plans for each individual to demonstrate their personal safety contribution and for the teams working in the most hazardous areas. The Alliance has also engaged a company called ‘People and Quality Solutions’ which has provided a tool to assess workers’ responsiveness towards risk, ensuring that people with the right safety attitude work on the most hazardous sites.

The Alliance has undertaken an audit to estimate how many tonnes of carbon the project will generate and is working with the Australian Green Infrastructure Council to be a pilot project trialling their sustainability rating scheme (similar to the green star building rating scheme). The Alliance has also established a sustainability working group where industry experts visit and discuss possible initiatives. A number of ideas have come out of this group including mounting solar cells on the acoustic barriers being built for the project to generate green energy. The Alliance was awarded $1m by the NSW Department of Environment and Climate Change to support this initiative and develop the concept further. The Alliance is also working with the Department of Planning to develop a bio-diversity off set strategy to plant threatened species to compensate for impacts on mangroves at Salt Pan Creek where bridgeworks are to be undertaken.

The Alliance has a number of key result areas (KRAs) and their outcomes determine the project’s success including achieving: good safety outcomes, delivery on time and on budget; environmental and community outcomes; ensuring rail and road

operations are not interrupted; and ensuring that there are no disruptions to services that run throughout the length of the project. TIDC prefers alliancing as a delivery approach on complex projects in the live rail environment when there is a high risk of managing limited industry resources in the context of rail possessions. The same consortium as in the K2RQ Alliance successfully won a competitive tender process last year to deliver the Richmond Line Duplication Project.

LEIGHTON CONTRACTORS

KINGSGROVE TO REVESBY RAIL QUADRUPLICATIONLeighton Contractors, as part of the Kingsgrove to Revesby

Quadruplication (K2RQ) Alliance, is delivering the duplication of rail

lines between Kingsgrove and Revesby stations in Sydney, Australia

for the Transport Infrastructure Development Corporation (TIDC).

RUPERT HOLLOWAY

ALLIANCE MANAGER

I’m a civil engineer with a degree from the University of Manchester in the UK, I’ve also got an MSc (Master of Science in Engineering) in construction management and I’m partway through doing research for a PhD in co-operative work in relational contracts with the University of Leeds in the UK. Primarily my experience has been working on large rail infrastructure projects in the UK and, most recently, here in Sydney, Australia.A successful project comes from the values that the team holds and the resultant behaviours. Leighton Contractors is very clear about what their values are, what is acceptable and how people should interact with each other, which I fi nd very liberating because it’s all about working co-operatively and allowing people to contribute their best and releasing them from ulterior agendas.


28

SITUATED IN AUSTRALIA’S SOUTHERN NSW, THE $412 MILLION PROJECT WILL IMPROVE ROAD SAFETY AND TRANSPORT EFFICIENCY ON THE HUME HIGHWAY, THE BUSIEST FREIGHT ROUTE IN AUSTRALIA. THE PROJECT IS BROKEN INTO FOUR SEPARATE SITES WITH A TOTAL LENGTH OF 35KM, SPREAD OVER 75KM BETWEEN THE STURT HIGHWAY AND HOLBROOK. Each of the four project zones has its own offi ce, team and manager.

An Alliance offi ce is located in Wagga Wagga for personnel working across all four zones. The project commenced in October 2007 and is on track to achieve its December 2009 target completion date.

The earthworks component involved moving about 2 million m3 of material. About 250,000 m3 of that meant granite blasting as close as 5m from the operational highway. Currently the project is undergoing stringless concrete paving where machine guidance technology is used to guide the paver instead of the traditional strings, making it faster and safer. The project also includes constructing about 4km of box culverts (roughly 2,000 units). The project team developed a new and safer method of lifting and handling the box culverts, making installation faster, and reducing plant movements, manual handling and the time spent at height and close to the active highway.

Leighton Contractors employees on the project peaked at around 270 and the total number of workers on the project reached 600 during the bulk earthworks. Since the project began there has been an enormous amount of training undertaken, around 35,000 hours so far.

Project safety has focused on the dangers of working close to heavy vehicles (about 5,000 a day) and on driver skills. A driver-training program addressing the use of the 120 four-wheel-drive vehicles on this project has been given to over 170 people. Driver fatigue is one of the big issues covered. Many workers face a long drive home on rural roads, with the added potential hazard of wildlife.

Unlike urban road projects with lots of neighbours, there are only about 40 along this project. Of these, in nearly every case, there are impacts including land acquisition, location of cattle underpasses and fence modifi cation, all requiring sensitive negotiation. Managing the disruption to the travelling public is also a prime concern for the Alliance.

The majority of freight traffi c is at night, so no night works are undertaken and where traffi c deviations are in place they are designed for a minimum 80km per hour speed limit. The RTA communicates expected travel delays to the travelling public through local radio stations, particularly when blasting operations were in operation.

There is some rare remnant box gum grassy woodland on the site and every eff ort has been made to retain as much as possible. Where that has not been possible it has been used as temporary habitats for displaced fauna around the edge of the corridor, to create mulch for the project and to control erosion sedimentation from the earthworks. There is an extensive tree re-planting program – with far more trees being planted than have been removed. Hundreds of nesting boxes have also been placed along the project route to compensate for lost vegetation shelters while small bird and other species re-locate.

The area is important to the indigenous Wiradjuri community. Before project commencement, as part of the environmental approval process, potential deposit investigations were undertaken involving members of the Aboriginal community. Over 80,000 artefacts were found, mainly stone chips and small tools.

The RTA has been very complimentary about progress to date, including the quality of the work and traffi c management. The project will leave the travelling public much safer when completed, by taking out all the tight curves, crests and intersections with property accesses. The long-term legacy of the Alliance will be saving lives.



NORTHERN HUME HIGHWAY DUPLICATIONLeighton Contractors has teamed with the New South Wales Roads and

Traffi c Authority (the client), Maunsell Australia and SMEC Australia (the

integrated design team) and Coff ey Geotechnics to form the Northern Hume

Alliance to deliver a portion of the “Accelerated Southern Hume Duplication

Package”, a project to make the entire Hume Highway dual carriageway.

TONY SHEPPARD

ALLIANCE MANAGER

I graduated from the University of NSW in 1989. I worked on quite a few projects before I joined Leighton Contractors on the Eastern Distributor. I’ve been with Leighton Contractors for about 12 years now. Clients want to have enduring relationships with Leighton Contractors and this means not only giving them quality of product and value for money but good environment and community outcomes. Leighton Contractors is also concentrating on good relationships with employees and management is working hard to provide a safe environment to work in, training opportunities and career paths. I’m a father of three including one little boy about three months old now. My family is living down here in Wagga Wagga with me and experiencing the country life for a while.


CALLIE GOLD MINE IS SITUATED 600KM NORTHWEST OF THE NORTHERN TERRITORY’S ALICE SPRINGS, IN THE MIDDLE OF THE TANAMI DESERT, WHERE SUMMER TEMPERATURES HOVER AROUND 36–38°C AND CAN REACH INTO THE HIGH 40S.The traditional Aboriginal landowners call the area around Callie ‘Kurra’. They have known about the gold there for a long time and an important local belief is that of Wawulja, the invincible warrior who travelled

with his many wives through Kurra, where his wives laid him down and treated the boils that covered his body.

These boils seeped into the earth forming Callie’s gold. HWE Mining currently excavates about 2.1 million tonnes of ore per annum, to produce about 380,000 ounces of gold. Callie’s mine life is expected to extend beyond 2015.

Newmont Tanami is putting a lot of eff ort into drilling to locate new ore bodies. Once an ore body is found, underground diamond drillers take samples to determine more precisely where the ore is. Geologists then generate models to defi ne economical mining shapes. This information is passed onto HWE Mining’s mining engineers, who then design the mine stopes (the excavations made to extract the ore). Primary and adjacent secondary stopes are designed, which enables maximum extraction of the ore in a ‘checkerboard’ fashion.

The primary stopes are mined fi rst and, when mining is complete, these are fi lled with cemented aggregate fi ll (CAF). The adjacent secondary stopes are then mined, benefi tting from the primary support stopes. The ore is then trucked to the surface to be transported to the mills where the gold is extracted and consolidated into gold bars for the Perth Mint to refi ne.

Monitoring the workforce and performance in an underground mine requires much more diligence than surface mining, where operations are visible. Underground mining also presents the challenge of co-ordinating the movement of trucks from several headings (end points of the underground mining access tunnels) to a single mine exit. Additional issues from undertaking underground mining include ventilation, heat build-up, depth of mining (at present the mine is over 1km underground and going deeper) and operating a large underground fl eet (currently there are 15 trucks underground).

As Callie is located close to the centre of Australia, employees fl y in from all around the country and stay at the project’s camp accommodation. Callie’s mining operations originally commenced at the Granites, which is where the gold ore treatment plant and mine camp accommodation are still located, 40km away from the mine site.

The camp amenities include a swimming pool, gymnasium, tennis courts and canteen. There is a Telstra phone connection between the mine and the camp, enabling email and phone communication, and mobile telephone coverage is available around the camp, allowing employees to stay in touch with their families.

The total workforce at Callie, including the Newmont Tanami staff , is about 700 and, of those, approximately half are direct HWE Mining employees. Approximately 14% of HWE Mining’s employees are indigenous. Callie Project Manager Graham Younge has also discussed options to increase indigenous employment with the Aboriginal Central Land Council in Alice Springs.

Callie’s underground miners work a two-week on, one-week off roster. There are signifi cant safety risks in underground mining that need to be carefully managed, such as handling explosives. It is how these risks are managed that determines how safe an operation is. The project team is very proactive with regards to safety and has adopted the phrase ‘safe production’, because production has little value if safety is not maintained.

Accounting for everyone underground is a fundamental safety undertaking at Callie. A tag board is used where employees ‘tag on’ when they go underground and they ‘tag off ’ when they come up. Explosives are not fi red until there is absolute surety that everybody is out of the underground environment. The only person allowed to take a tag off the board is the owner of that tag.

Several safety initiatives have been undertaken at Callie, for example a recent stop day for safety was held. All production was stopped to catch up on the mine’s housekeeping activities. For example, spray lines keeping dust levels down in the mine are very diffi cult to repair when trucks are running, so all the sprays were repaired. The feedback from the workforce on that exercise was extremely positive.

Newmont Tanami and HWE Mining share a long and very good relationship. It goes back to when Eltin’s fi rst had the contract at the Tanami, before Henry Walker and Eltin merged to become Henry Walker Eltin, the forerunner of HWE Mining. The latest alliance contract has allowed both companies to openly share their resources and expertise to optimise the procurement of equipment and people, and to achieve the best outcomes for the mine.


CALLIE GOLD MINEHWE Mining, as part of Leighton Contractors’ Resources Division,

entered into an alliance contract with Newmont Tanami to mine

gold at Callie in 2003. Callie is one of Australia’s most productive

underground gold mines.GRAHAM YOUNGE

PROJECT MANAGER

I’m a mining engineer with some 20 years’ experience, most of it in Western Australia. I’ve been doing fl y-in, fl y-out mining for 12 years now. I have two young children and a wife at home in Perth – four and a half hours away by plane. I’m in contact with them everyday and when I go home I make the most of my break. It’s a matter of balancing work life with your home life and getting the most out of both. I’ve been at Callie for about six months, and I guess what drew me here is that it’s quite a beautiful place. Although it’s very remote, it’s got an interesting bunch of people, and I saw an opportunity to make some really big improvements.


NEWS ANDMEDIA RELEASESDuring the second quarter of 2009, the Group made 28 announcements

to the Australian Stock Exchange including the award of 9 major projects.

These, and other projects won or currently ongoing, took the Group’s

work in hand at 31 December 2008 to A$37.5 billion.

1 OCTOBER 2008

THIESS AND JOHN HOLLAND CONSORTIA SHORTLISTED TO BUILD VICTORIAN DESALINATION PLANTThe desalination plant, the largest in Australia, will be delivered as a Public-Private Partnership, which includes construction and operation of the desalination plant, an 85-kilometre transfer pipeline, delivery of power supply for the project and the purchase of renewable energy. The two shortlisted bidders are:

• AquaSure comprising Degrémont, SUEZ Environment, Macquarie Capital Group and Thiess; and

• BassWater comprising Veolia Water, John Holland and ABN AMRO Australia.

14 OCTOBER 2008

THIESS AWARDED A$1 BILLION CONTRACT FOR BAYAN’S TSA & FKP COAL MINE PROJECTSThiess (Indonesia) has been awarded a 5 year, AU$1 billion contract for the development and operation of the Teguh Sinar Abadi (TSA) and Firman Ketaun Perkasa (FKP) Coal Mines. TSA and FKP are subsidiaries of Bayan Resources in Indonesia. The mines are located near Melak in East Kalimantan. The new contract includes mine planning, overburden removal, coal mining, plus loading and transportation of coal from the mine site to the river port.

17 NOVEMBER 2008

RMIA ANNOUNCES RISK MANAGER OF THE YEARLeighton Holdings Limited’s Executive General Manager, Risk Management, David Hudson, is the Risk Management Institution of Australasia’s 2008 Risk Manager of the Year. The award was announced at the RMIA conference in Perth, WA. Since 2004, Leighton has built a well-established project risk management process throughout the Group to actively implement initiatives to better identify, mitigate and respond to potential threats.

LEIGHTON PROPERTIES AND MIRVAC SELECTED TO DELIVER FIRST PHASE OF $1.7 BILLION GREEN SQUARE TOWN CENTREMirvac/Leighton Properties has been selected to partner with Landcom to deliver the fi rst phase of the $1.7 billion Green Square Town Centre. Planning Minister, Kristina Keneally, said the selection of Mirvac/Leighton Properties to co-develop six hectares of the Town Centre represented a huge step towards realising the landmark project. “The Green Square Town Centre will add vibrancy to Inner-South Sydney and promises to be a world-class sustainable urban environment, Sydney’s fi rst ‘global village’,” Ms Keneally said. “Construction of the Town Centre will begin in 2010 and when it is completed, it will provide over 2,500 homes and offi ces for 7,000 workers serviced by existing transport infrastructure.”

6 NOVEMBER 2008

LEIGHTON CONFIRMS FULL YEAR GUIDANCE OF 15% PROFIT GROWTHAt Leighton Holdings’ 47th Annual General Meeting held in Sydney, Chairman, Mr David Mortimer, reported that the company had achieved a 35% increase in profi t after tax to a record $608m for 2007/08. As at 30 September 2008, work in hand had increased to $35.3bn and since then the Group has won around $2.4bn worth of work.

“The Leighton Group has reported another strong year with excellent returns for shareholders based on our diversity, momentum and strategic initiatives. Dividends were increased by 32% to 145 cps and the Group reported an average return on shareholders funds of 43%,” he said.

“Total revenue for the 2008 fi nancial year, including joint ventures and associates, was up 22% to $14.5bn. The Group’s 2008 result was based on good contributions from a number of large construction projects in Australia and the Gulf, another solid property development performance and the contract mining of iron ore and coal in Australia and Indonesia.”

8 DECEMBER 2008

AL HABTOOR – MURRAY & ROBERTS – TAKENAKA JV AWARDED AED 4.9 BILLION (A$2 BILLION) DUBAI AIRPORT CONCOURSE 3 PROJECTThe Al Habtoor – Murray & Roberts – Takenaka (HMRT) Joint Venture has been awarded an AED 4.9 billion (A$2 billion) contract for the construction of Dubai Airport’s new Concourse 3 for Dubai’s Department of Civil Aviation (DCA). The project is worth AED 2 billion (A$800 million) to the Al Habtoor Leighton Group. Concourse 3 will be connected to the two major public levels of Terminal 3 via an automated people mover (APM) in addition to the vehicular and baggage handling system utility tunnels. The building, which follows the characteristic shape of Concourse 2, will be 645 metres long, 90 metres wide and 42 metres high in the centre from the apron level, and will accommodate 20 aircraft stands, 18 of which will accommodate Airbus’ new A380. The concourse will include one four-star and one fi ve-star hotel, fi rst- and business-class lounges, and duty-free areas. The total built-up area will be 528,000 square metres. Work commenced immediately, with completion scheduled for the end of April 2011.

OCTOBER NOVEMBER DECEMBER

33

12 NOVEMBER 2008

LEIGHTON ASIA SECURES A$260 MILLION DRAINAGE PROJECT IN HONG KONGLeighton Asia has been awarded a contract for the design and construction of the Lai Chi Kok Transfer Scheme by the Hong Kong Drainage Services Department. The project, worth A$260 million, provides for the design and construction of two storm water drainage tunnels. The work also includes six intake shafts, a stilling basin, an outfall structure and approximately 270 metres of three metre internal diameter connection adits.The drainage tunnel will capture rainwater from the upper catchment in West Kowloon and discharge it into Victoria Harbour to alleviate fl ooding of the low lying, highly developed areas of Kowloon. Works started in November 2008 for completion in 2012.

LEIGHTON ASIA AWARDED CONTRACT FOR THAILAND RESORT DEVELOPMENTLeighton Asia has been awarded a contract for the construction of a resort and residential complex on Koh Samui in Thailand. Scheduled to open in 2010, Conrad Koh Samui Resort and Spa will be the newest luxury villa property on the popular Thai island. The property is being developed by Hong Kong company Hillcrest Resorts (Samui) Company Limited which specialises in property development and investment across Asia Pacifi c. The property will set new standards for spa resorts on the ever popular island of Koh Samui and will give guests a new location in which to experience the Conrad brand.

29 OCTOBER 2008

THIESS IN CONSORTIUM TO DELIVER THE ROYAL NORTH SHORE HOSPITAL AND COMMUNITY HEALTH SERVICES PROJECTThe New South Wales Government has reached fi nancial close with the InfraShore Consortium (InfraShore), led by Thiess Pty Ltd and ABN AMRO Australia Pty Limited, in a contract to deliver the Royal North Shore Hospital and Community Health Services Project. InfraShore brings together the expertise of leading infrastructure providers including Thiess (sponsor and design and construction contractor), Thiess Services (facilities management), ABN AMRO (sponsor and fi nancier), and ISS Facilities Management (catering, cleaning, security personnel etc). Thiess Managing Director David Saxelby said the project is the largest-ever health Public Private Partnership undertaken in New South Wales. Thiess will achieve revenues of $721 million in the design and construction phase and $409 million over the 28 year concession period.

26 NOVEMBER 2008

AL HABTOOR LEIGHTON GROUP WINS AED 8.85 BILLION (A$3.75 BILLION) DUBAI PEARLThe Al Habtoor Leighton Group has signed a letter of intent for the AED 8.85 billion (A$3.75 billion) Dubai Pearl mixed-use development for Pearl Dubai FZ LLC. The project involves the construction of an integrated city overlooking the Palm Jumeirah development in Dubai. Dubai Pearl will feature an iconic building structure comprising four 73-storey mixed-use towers, world-renowned fashion and technology brands, and the Baccarat Hotel and Residences, and will provide a 24-hour living city with commercial, retail, residential and leisure facilities. Al Habtoor Leighton commenced work on the project in January.

19 DECEMBER 2008

LEIGHTON CONTRACTORS ENTERS STRATEGIC PARTNERSHIPS TO DEVELOP RENEWABLE ENERGY SOLUTIONSLeighton Contractors has expanded its capability in the Australian renewable energy sector by executing agreements with two global technology providers to explore and develop wave and solar power projects in the region. As part of the collaborative effort, Ocean Power Technologies (Australasia) Pty Ltd (a subsidiary of US based Ocean Power Technologies Inc) and Leighton Contractors will develop and commercialize OPT’s unique, ocean tested wave power technology in Australia and New Zealand. Leighton Contractors also recently signed an agreement with MAN Solar Millennium to develop solar thermal power plants in Australia. A Joint Venture between MAN Ferrostaal AG and Solar Millennium AG, the German based company specialises in power plants which utilise direct solar irradiation converted into heat for large–scale generation of electricity.

23 DECEMBER 2008

LEIGHTON CONTRACTORS JOINS ALLIANCE TO DELIVER EASTERN BUSWAYLeighton Contractors will join Queensland Transport and SKM-Maunsell AECOM in an alliance to deliver the Eastern Busway – Buranda to Main Avenue project in Brisbane’s south, after today being selected as preferred construction partner by the Queensland Government. The project consists of a 1.05km two-way single carriageway busway which will connect the existing South East Busway at Buranda to Coorparoo via Stones Corner. Construction of this section of the Eastern Busway – Buranda to Main Avenue is on track to start in mid-2009 for completion by early 2012. Darren Weir, General Manager, Northern Region said Leighton Contractors was pleased to be joining alliance partners Queensland Transport and SKM-Maunsell AECOM to deliver the vital infrastructure. The Eastern Busway – Buranda to Main Avenue project will help relieve congestion and signifi cantly reduce travel times for public transport commuters.

COMMUNITY

INVESTMENT In the last fi nancial year, the combined Leighton Group invested close to

$4 million in the community through our long-term partnerships and

charitable donations. Leighton Holdings is proud to continue our support

of our long term partners by investing in organisations which foster skills

development, protect the environment and promote excellence in the arts.

VICTORIAN BUSHFIRE APPEAL

The Leighton Group and its employees responded quickly to the Victorian bushfi res in February.

Over $350,000 has been donated to the Red Cross Victorian Bushfi re Fund through matching staff donations and corporate donations. In addition John Holland, Leighton Contractors and Thiess have off ered in-kind support such as portable offi ces, ablution blocks, vehicles, bulldozers, graders and water carts to the eff ort.

Staff from John Holland’s Sugarloaf Pipeline Project, located in the fi re region, assisted with the fi re fi ghting and recovery eff orts and provided equipment to the Country Fire Authority.

As part of their support to the eff ort, Leighton Contractors supplied a vehicle to the Diamond Creek Fire Brigade that assisted with supplying water to trucks in backburning eff orts around Arthurs Creek as shown in the picture below.

“The Leighton Group off ers our deepest sympathy to families, friends and communities that have suff ered loss and hardship resulting from the Victorian bushfi res,” CEO Wal King said.

“We’d also like to express our support for the emergency services staff and volunteers for the courage they have shown on the front line of this crisis.”

LANDCARE CARBONSMART

Leighton Holdings is committed to protecting the environment and its companies work to reduce their carbon footprint on projects. Leighton has enjoyed a long partnership with Landcare Australia with the Leighton Salinity Assault Program. In December 2008, Leighton Holdings and Landcare Australia forged ahead with a new partnership with Landcare CarbonSMART.

Landcare CarbonSMART is an initiative backed by the Federal Government and was launched in 2007 in response to the growing demand from landholders and businesses to work together to off set carbon emissions. The initiative is the only not-for-profi t carbon credits program with dual accreditation under the NSW and Federal abatement schemes.

In line with the Group’s core values, the partnership with Landcare CarbonSMART will focus on developing training, safety and education through capacity building. Landcare CarbonSMART aims to cover all viable land in Australia with site assessors and to train super assessors for specifi c carbon sink or management requirements. Leighton Holdings’ partnership with CarbonSMART will assist in providing necessary training, skills development and safety materials for the assessors. Leighton Holdings is proud and excited to be involved with this new environmental initiative.

2009 INDIGENOUS AUSTRALIAN ENGINEERING SUMMER SCHOOL

The Leighton Group is committed to increasing indigenous participation in our business and has joined the Australian Employment Covenant (AEC), a joint initiative of business, the Federal Government and indigenous communities, to break the cycle of welfare dependence and provide real and lasting jobs.

Our AEC commitment to employ 1000 indigenous Australians complements our 10-year investment in the future of young Aboriginal students through the Engineering Aid Indigenous Australian Engineering Summer School.

Despite the global downturn, engineers are still in demand across Australia and indigenous Australians are under-represented in the engineering profession. The summer school aims to increase representation of indigenous students at tertiary institutions, especially in engineering disciplines. We have supported the summer school since its inception.

The 2009 summer school brought together 21 senior secondary students from across Australia to participate in a fi ve day live-in summer school program at the University of Newcastle with all travel and accommodation costs covered by the program’s sponsors.

The summer school provides a challenging environment for indigenous students to discover the benefi ts of the engineering profession as well as providing a forum for students to meet engineering role models and gain insights into the opportunities that engineering can provide to so many communities. During the week, students worked on engineering problems in a variety of disciplines, met practising engineers and visited various project sites.

At the conclusion of the week-long program, students were presented with certifi cates by the school’s patron and former Prime Minister, Bob Hawke at a reception hosted by the Governor-General.

Chief Financial Offi cer, Scott Charlton represented Leighton Holdings at a reception hosted at Admiralty House and received an award of appreciation presented by Her Excellency, the Governor-General Quentin Bryce.

LE IGHTON SECOND QUARTER UPDATE 08/09 34

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