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CopperString 2032, QLD

CopperString 2032, QLD
Client:
Powerlink Queensland
Project Value:
> $5 billion
Years of Service:
2023
Services Provided:
  • Transaction Management and Commercial Advisory Services

The Powerlink-led CopperString 2032 project, formerly known as CopperString 2.0, initially involves building 840km of new electricity transmission line from just south of Townsville.

The CopperString 2032 Project is the largest ever economic development project in North and North West Queensland and the largest ever major project for Powerlink Queensland. It initially involves building 840km of transmission line and five substations from just south of Townsville in the Burdekin region to Mt Isa. The Project will connect Queensland’s Northwest Mineral Precinct to the National Electricity Market and unlock zones for renewable energy generation along the alignment.

CLIENT OBJECTIVES:

Powerlink was seeking transaction and commercial support throughout the initial stages of the CopperString2032 lifecycle to lead pre-award tender activities and ensure the project aligns with key objectives and timing. Powerlink’s transaction and commercial requirements include:

  • Development of project and tender documents
  • Inviting and obtaining proposals from contractors
  • Management of the invitation to tender and evaluation processes
  • Workshop facilitation with both internal stakeholders and the contractor
  • Coordination of internal workstreams
  • Interface management with the contractor
  • Commercial support and advice, including commercial strategy and ITC contract development.

OUR ROLE:

ConnellGriffin personnel are currently working with Powerlink to deliver transaction management and commercial advisory services. The team has prepared a suite of clear and concise tender documentation for the project including a request for proposal, evaluation plan and negotiation plan. Alongside this, ConnellGriffin has facilitated the FES tender submission and evaluation process through a collaborative framework, culminating in an evaluation report and recommendation and is progressing through a similar process for the FCO submission.

Additionally, a key role throughout the project to date has included supporting the drafting and alignment of key project documentation to ensure clarity and consistency and reduce Powerlink’s risk profile.

At Powerlink ConnellGriffin professionals support the interface between client and contractor by fostering an environment for effective communication and collaboration. This is achieved through continuous workshops and collaborative sessions organised and conducted by the team to gather input, disseminate information and address challenges.

ConnellGriffin is also working with Powerlink on the development of the Project Delivery Agreement and its supporting annexures. During the development phase of the contract, ConnellGriffin works closely with Powerlink’s employees and external consultants to develop the payment annexure and the key commercial framework for the project. ConnellGriffin is also supporting the development of the payment and incentivisation models through the risk and reward regime. As part of the development process, detailed commercial modelling has been undertaken to draw out and mitigate risks to the project.

In addition to the above, ConnellGriffin is providing support in the development of the general conditions of the Project Delivery Agreement, where detailed commercial reviews have taken place to ensure that a comprehensive position has been considered which is in line with the market.


ACHIEVEMENTS, SOLUTIONS AND VALUE ADDS:

There is currently numerous constraints and challenges impacting the tendering market within the Australian energy infrastructure sector. Challenges included labour shortages, long lead times for key equipment, soaring material and labour costs, COVID-19 disrupted supply chains and high demand for similar projects Australia wide. Aside from the sector wide constraints the team also has to manage challenges unique to CopperString including the novation of the project from a private entity to Powerlink and the adoption of a more collaborative delivery model in place of the previous lump sum EPC arrangement, and modifications to the delivery strategy staging.

Drawing from ConnellGriffin’s experience in managing the transaction on some of Australia’s largest transmission line and energy infrastructure projects, the team is able to utilise contemporary knowledge of the current market to support Powerlink in overcoming these challenges and achieving their desired procurement outcomes. A bespoke ‘value for money’ evaluation methodology was developed by the team, drawing on their extensive transaction experience and industry best practice to provide a robust approach for sole source procurement. Throughout the engagement our team provides ongoing training to the Powerlink project team to ensure we leave a legacy of upskilling project team members for future procurement strategies and ensure best for project outcomes.

CG Team Members Involved:

Brian Connell Brian Connell Managing Director Jonathan Byrne Jonathan Byrne Director Ian Costa e Silva Ian Costa e Silva Senior Advisor Claudia Prior Claudia Prior Senior Advisor Juan Fourie Juan Fourie Advisor Sam Broomfield Sam Broomfield Senior Advisor Roya Khodabandehloo Roya Khodabandehloo Advisor Antony Yu Antony Yu Advisor Augusto Bellodas Augusto Bellodas Consultant

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