The Government of Australia has contracted local construction company Barpa to deliver critical upgrades at Puckapunyal Training Area in Victoria, Australia.

The company was selected under the government’s Indigenous Procurement Policy (IPP) that seeks to support local enterprises.

As agreed, Barpa will remediate and upgrade current water, stormwater and sewerage systems across the base, among other works

The contract is valued at around $33.56m (A$45.8m).

According to the federal government, the project will support the Victorian economy by creating opportunities for local businesses.

Australian Minister for Defence Industry Melissa Price said: “The construction workforce will be about 30 workers per day, with a predicted peak of around 80 workers per day.

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“The Local Industry Capability Plan targets 97% of the subcontract packages to be awarded to local businesses. That is clearly an outstanding result for the local economy.”

She added that the project works will improve critical base infrastructure and will support the sustainment of the Puckapunyal Military Area in support of army capability.

Separately, Barpa received another contract to carry out key upgrades at HMAS Waterhen, a naval base on Sydney’s lower north shore.

Minister Price said: “HMAS Waterhen is the Royal Australian Navy’s lead establishment for mine warfare and supports a large workforce of defence personnel.

“The project will improve critical base infrastructure and ensure HMAS Waterhen continues to be able to provide support to the mine warfare force.

“Barpa will remediate and upgrade the engineering services and working accommodation at HMAS Waterhen.”

This naval contract values $18.9m (A$25.8m).

Last month, the Australian Government awarded ten new contracts to boost army and naval capabilities.