Work is set to commence on the first rail tunnel under Sydney Harbour after the NSW government awarded a $2.81 billion contract for its construction to a consortium led by CIMIC Group and John Holland.
The twin-tunnel rail line will run more than 15 kilometres under the harbour and CBD, and revolutionise travel in Sydney, according to engineering giant John Holland.
The state government confirmed CIMIC, John Holland and Ghella as the successful tenderers for the project after NSW Treasurer Dominic Perrottet's Tuesday state budget promised to deliver $73 billion of infrastructure investment over four years.
Preparation work will begin immediately to get the first of five tunnel boring machines in the ground by the end of 2018, NSW Premier Gladys Berejiklian said on Thursday.
"The scale of this project and what it will do for the ease and speed of travelling across Sydney is hard to comprehend," Ms Berejiklian said.
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The twin rail tunnels will be completed by mid-2021, and are part of Australia's biggest public transport project - a 66 kilometre line that will link Sydney's northwest to the southwest, via the city, due to be operational in 2024.
John Holland chief executive Joe Barr said the new rail tunnels will revolutionise Sydney's public transport.
"This iconic project will build the first ever rail tunnels under Sydney Harbour - a crucial transport connection to meet the ever growing needs of our global city," Mr Barr said.
Roman Garrido, the managing director of CIMIC's CPB Contractors, said construction of the twin rail tunnels will deliver jobs and opportunities for local workers and businesses, as part of a "sustainable and socially-inclusive" procurement strategy.
The project also includes the creation of six new underground metro stations.
John Holland and CIMIC, formerly known as Leighton Holdings, are also responsible for the $8.3 billion Sydney Metro Northwest project.
CIMIC shares gained 65 cents, or 1.7 per cent, to $39.13.
