Leighton Contractors, in JV with long-term partner Kumagai Gumi, has been named as favoured contracting group for the US$178M underground section of Western Australia’s Perth to Mandurah railway.

The group has beaten off a challenge from two other groups – Multiplex Construction with John Holland and the City Connect consortium formed by Clough, McConnell Dowell and Obayashi.

Confirming the Leighton-Kumagai team’s favoured position, Western Australia Planning and Infrastructure Minister Alannah MacTiernan said the group would negotiate a final price and contract terms for the design and build deal. She said: “Details of the proposals must remain confidential during the negotiating phase, which we expect will be completed by mid December.”

The government is expected to award the lump sum concession deal early next year when detailed design will start. Completion is in mid-2006. MacTiernan added: “The contractor will be responsible for all design and construction, as well as maintenance and electrical and mechanical services for 10 years after completion.”

Work involves the construction of 1.6km of tunnels between Perth Central station and the Narrows Bridge on the Perth-Mandurah railway.