Minister for Defence, Marise Payne, and Minister for Indigenous Affairs, Nigel Scullion, today launched an Indigenous joint-venture to deliver the $213 million Bayinguwa critical wharf works project at Garden Island Defence Precinct, the Royal Australian Naval Base in Sydney.
The Bayinguwa Delivery Team is a joint venture between Pacific Services Group Holdings Pty Ltd (PSG Holdings) and Lendlease Engineering Pty Ltd. PSG Holdings, a small to medium enterprise that is 100 per cent Indigenous owned, managed the design of the works. PSG Holdings has teamed with Lendlease for the construction of the works in a mutually beneficial venture that gives this Indigenous business a foot-in-the-door to deliver major infrastructure projects.
“This project was announced by the Prime Minister in his 2018 Closing the Gap speech and as he said ‘Bayinguwa’ is the Aboriginal name for Garden Island in Sydney,” Minister Payne said.
“The engagement of the Bayinguwa Delivery Team is first-and-foremost about delivering high quality works for Garden Island. The Garden Island Bayinguwa Delivery Team will be responsible for managing the demolition of two deteriorated wharves and constructing a single new wharf in their place.
“These works are essential to ensure the Royal Australian Navy can safely berth and maintain its ships at Garden Island, which is the major home-port on the east coast of Australia.
“By engaging an Indigenous joint venture to deliver these important works, the project will also support the Government’s commitment to creating economic opportunities for Aboriginal and Torres Strait Islander businesses and growing the Indigenous business sector.
Minister for Indigenous Affairs, Nigel Scullion heralded today’s announcement as yet another example of the practical measures the Turnbull Government is taking to improve the lives of Indigenous Australians.
“The Indigenous Procurement Policy (IPP) has supercharged the Indigenous business sector, driving rapid growth in the demand for Indigenous goods and services across a diverse variety of industries. The IPP has resulted in more than 1000 Indigenous business across the country winning contracts worth over $1.084 billion since the IPP’s commencement in July 2015, up from just 30 Indigenous businesses winning $6.2 million in 2012-13 under the former Labor government’s policies,” Minister Scullion said.
“The Bayinguwa project is just one example of the potential the IPP is realising, in this case encouraging Lendlease to enter into a joint-venture with an Indigenous business because of the strong market signal the Turnbull Government is sending.
“This government is backing Aboriginal and Torres Strait Island businesses all the way and we make no apology for the fact we are not only setting but also exceeding ambitious targets to do more business with Indigenous owned businesses.
“The IPP is a genuine win-win for taxpayers. All contracts under the IPP are delivered on a value for money basis, meaning the Commonwealth does not pay more for the goods and services it would otherwise be procuring, but by engaging an Indigenous business we get more Indigenous jobseekers off the misery of welfare and into the dignity of work.
“The average Indigenous workforce of IPP firms is 50 per cent, compared to non-Indigenous businesses which have an average Indigenous workforce of 0.7 per cent, meaning if we get more Indigenous Australians into business we get more Indigenous Australians into work.
The total project value is $213 million and construction is due to commence in September 2018 for completion in February 2022.
It is anticipated that the project will generate up to 150 jobs at the peak of construction with opportunities available for local industry and Indigenous involvement.