Overseas work career off to good start

Press, 5 July 1983, Page 31

Overseas work career off to good start

Few companies have ever made such a sucessful beginning to a career in international construction as Downer and Company. It was awarded its first overseas contract, in joint venture with Fletcher Construction, in December 1979.

This contract, in the Western Caroline Islands’ Republic of Belau, involved the construction of the airport and improvements to the roading system, electrical power supply and water reticulaton. The airport will open on July 20, more than six months ahead of schedule. a ; . * Since that firs? job,

Downer, in joint ventures with the U.K. contractor, Kier International, has won power construction and tunnelling contracts in Papua New Guinea, and tunnelling work associated with a power project in Fiji. Its international operations are now so large an international division was formed in 1982 to administer overseas work, and seek out further opportunities. The international construction market is a highly competitive place and Downer’s success, in competition with companies from countries like Japan and South Korea, canipt be overrated. *

Competition is also spurred by global recession forcing giant American and European contractors to seek work in. the Pacific Basin and South-East Asia. The benefits for New Zealand contractors winning work overseas are substantial and extend to many parts of the domestic economy-

Project income helps the balance of payments, reducing the very large deficits New Zealand traditionally runs in its services transactions. New Zealand contractors winning work overseas use products and materials they are most‘familiar with. Con-

sequently, large quantities of pipes, site buildings and other products are often exported along with the equipment needed for the

The Belau contract, worth ?US24M, involved extending and up-grading an existing runway for the Belau Government, although the work was administered by the U.S. Navy. More than 2M cu m of earthworks with a very high moisture content, excavation and processing of coral sub-base, the quarrying, crushing and screening of basalt basecourse, and 55,0g0 tonnes of asphaltic concrete went into the

2.2 km-long 46m-wide runway.

Work on the Warangoi power project, in PapuaNew Guinea, included a weir and intake structure, a concrete-lined tunnel 7km long and 4.25 m in diameter, the power station and switchyard, and a tailrace channel. Work began in April, 1981, for completion in October, 1983. Downer’s third overseas success came in April, 1982, when it and Kier won the SNZ3IM contract at Fiji Power Project x HI, Monasavu, on Viti Eevu.