Contracts
- Private sector proposals and the selection of a preferred proponent
- Contract details
- Duration and scope of contracts
Private sector proposals and the selection of a preferred proponent
In February 1998 private sector participation in the design, construction, operation and maintenance of a permanent sand bypassing system was invited via a Call for Proposals. This process yielded ten proposals from which two were shortlisted that best satisfied the objectives of Queensland and New South Wales. The selected proponents were invited in August 1998 to submit detailed proposals via a Call for Detailed Proposals document. Tenders closed in November 1998 at the Tender Box of the Department of Public Works and Services in New South Wales. As part of the Call for Detailed Proposals, the two selected Proponents were requested to submit detailed proposals for financing, design, obtaining of approvals, construction, commissioning and the long term operation and maintenance of the permanent sand bypassing system (Stage 2) for a period of approximately 25 years. Operation of the system would transfer to the two States at the end of that period, with all the works being in accordance with the Governmental requirements.The assessment of tenders was conducted in accordance with New South Wales tendering guidelines as a requirement of the Deed of Agreement between the two States that specifies New South Wales as the Coordinating State subject to provisions of the Agreement.
Contract details
The successful proponent is McConnell Dowell Constructors (Australia.) Pty. Ltd [A.C.N. 002 929 017] which is a wholly owned subsidiary of the publicly listed McConnell Dowell Corporation Limited [A.C.N. 008 444 880]. The Australia and New Zealand Banking Group [A.C.N. 005 357 522] is responsible for finance during the development and operation phases of the project. The other main consultants and advisers nominated in the McConnell Dowell tender for this project are Cardno MBK Pty Ltd which provides general engineering advice, Queensland Transport which provides operational advice on the sand bypass system, Coastal Engineering Solutions which provides specialist coastal engineering services, and Malleson, Stephen, Jaques which provides legal advice.
Duration and scope of contracts

Slurry Pump No. 2 located in the Control Building
used to pump the sand-water mixture through
underground pipes to the outlets.
The two States have in effect agreed to grant to the Contractor, on the terms and conditions of the Development Agreement, the right to finance, plan, design, and construct a sand bypassing system and to establish a clear navigation channel for commissioning the system. The Operator, on the terms and conditions of the Concession Agreement, has been granted the right to replenish and maintain the sand supply to the southern Gold Coast beaches by the operation and maintenance of the sand bypassing system and maintain a clear navigation channel for a period of 25 years.
The system will consist of the following:
- a jetty and pumping stations at the northern end of Letitia Spit in New South Wales;
- permanent pipelines to Snapper Rocks and Kirra Point in Queensland with provision for nourishment at Duranbah, Greenmount Beach and the Tweed lower estuary shoals;
- provisional dredging during the development phase to establish a clear navigation channel, or to ensure an adequate quantity of sand is delivered to the southern Gold Coast beaches and;
- dredging during the operating phase consisting of:
- maintenance dredging to remove sand that bypasses the jetty and remains in the navigation channel
- dredging to ensure an adequate quantity of sand is delivered to the southern Gold Coast beaches.
On the 30th September 2024 the operation, including the jetty, pumping stations and pipelines, will transfer at no additional cost to the two States. New South Wales and Queensland could then enter into further contracts for the operation of the system as appropriate. The structures which make up the system are generally designed for a 50 year life.
Last updated: 28 November 2003
