Shoalwater Bay Military Expansion

Economic Benefits 

The Australia-Singapore Military Training Initiative and the Shoalwater Bay Training Area (SWBTA) Remediation Project will invest in the order of $900 million in construction and development activities.

The $135 million Shoalwater Bay Remediation Project will provide critical infrastructure upgrades to support joint and multinational training activities, including amphibious training.

Consistent with the Morrison Government’s Local Industry Capability Plan initiative, Managing Contractor for the Australia-Singapore Military Training Initiative Facilities Project at the SWBTA, Laing O’Rourke, and Managing Contractor for the SWBTA Remediation Project, FKG Downer joint venture, have committed to sourcing in the order of 80 per cent of the value of the sub-contracted works from the local area.

The projects will provide an economic boost to regional Queensland, with both Laing O’Rourke and FKG Downer joint venture aiming for 80 per cent of the total sub-contractor packages to go to businesses in and around regional centres of Central Queensland.

Local Industry Capability Plans must provide details regarding the expected economic impact of the works and the proposed local industry participation.

Central Queensland is already benefiting from the Australia-Singapore Military Training Initiative:

  • To date, excluding the six contracts worth $11 million announced in December 2019, Laing O’Rourke has engaged 26 companies from the local region for design and construction work valued at $27.4 million.
  • Defence expects in the order of 200 sub-contractor packages for the construction of the expanded SWBTA will be released over the next five years.
  • Defence training activities also inject funds directly into local economies benefitting a wide range of businesses.
    • Around $10 million was directly injected into the Livingstone and Rockhampton regions from the 2019 Exercise Talisman Sabre.
    • Singapore also contributes $23 million per year to support and conduct Exercise Wallaby (excluding Singapore Armed Forces contributions to local businesses while on rest and recreation).

A 2017 KPMG Socio-Economic Impact Assessment found that the development phase of the Australia-Singapore Military Training Initiative will see approximately $150 million spent in the Capricorn region each year, creating around 250 jobs.

Once the Australia-Singapore Military Training Initiative is operational, $36 million will be spent annually for the duration of the 25 year Initiative, generating up to 75 jobs each year.

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