Western Power partners with industry
Release Date: 09 April 2008
Western Power today announced it has signed an alliance agreement with Transfield Services to provide guaranteed resources and to assist it to meet the significant increase in its work program driven by Western Australia's booming levels of growth.
The alliance will have a potential value of up to $190 million in the first full year of operation.
Alliances with industry are a key strategy to minimise the impact of the rising cost of materials and the skilled labour shortage being experienced by business in WA.
Western Power's alliance agreement with Transfield Services covers capital works for both the transmission and distribution networks. The agreement, which is effective from today, will run for a period of five years, with an option to extend for a further five.
Western Power's Managing Director Doug Aberle said this arrangement was a new approach for Western Power that signalled a commitment to working collaboratively with industry in long-term contracts that will deliver the works program.
"In WA alliances have already been adopted by organisations such as the Water Corporation and are used by eastern states utilities as an efficient method of delivering major infrastructure programs.
"Alliance models are particularly effective at increasing efficiencies in an economic climate where demand outstrips supply for labour and materials, which is WA's current environment.
"Western Power's traditional approach of using a tender process to secure best prices is a model best suited to a situation where supply outstrips demand.
"We believe it will be more effective to develop longer term collaborative arrangements where both parties involved in an alliance gain efficiencies and have greater certainty of supply and greater certainty of work respectively.
"This will be a pain-share gain-share arrangement with transparency of accounting.
"The alliance with Transfield Services, which is a Registered Training Organisation, will help address the resource shortage being experienced in WA and introduce into the State new resources which will further economic development," he said.
Mr Aberle said the alliance should provide significant commercial benefits for Western Power.
Staff from both companies will be involved in the delivery of work, which includes engineering, field resources, supervision, project management, and the commissioning of transmission and distribution infrastructure that is allocated to the alliance.
Contact us
If you have any questions regarding this media release please email us: media@westernpower.com.au
