SYDNEY - [AAP] Construction giant CIMIC (ASX: CIM) has announced three new major contracts for its companies, including design and construction for Victoria's multi-billion-dollar West Gate Tunnel project.

In a 50:50 joint venture with John Holland, CIMIC's CPB Contractors will share design and construction on the expanded $6.7 billion West Gate tunnel project.

Victorian Premier Daniel Andrews on Tuesday said CPB and John Holland would immediately begin setting up a construction compound in Footscray, where work on the northern tunnel portal will begin in January.

Major construction is expected to begin in earnest early in 2018 with the project, worth around $2.5 billion to CPB Contractors, scheduled to open to traffic in 2022.

In North Queensland, CIMIC company UGL will provide engineering procurement and construction for a 270MW solar farm project, as part of Genex Power's Kidston hydro-solar and "giant water battery" project.

That project is expected to generate 783 gigawatt hours of renewable electricity, equivalent to powering around 140,000 Australian homes per year.

Managing director Jason Spears said UGL had technical expertise in linking renewable generation assets to the electricity grid and had already delivered five solar projects and has five more in the pipeline.

The total revenue deliverable to UGL had not yet been finalised, Mr Spears said.

Also, CIMIC Group's mineral processing company, Sedgman, has been awarded contracts worth almost $100 million by QCoal Group to deliver facilities at the greenfield Byerwen Coal Mine in Central Queensland.

 

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