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Highlights:

  • DOW to receive approximately AUD 280 million in revenue from Ō2NL highway construction
  • Downer EDI joins alliance to deliver 12km section of new Wellington–Levin corridor
  • The company begins project establishment works; full construction scheduled to start in Spring 2025

Downer EDI Limited (ASX:DOW) has announced the signing of a Project Alliance Agreement (PAA) for the delivery of the southern section of the Ōtaki to North of Levin (Ō2NL) highway project, located between Wellington and Palmerston North on New Zealand’s North Island. The agreement, signed with the New Zealand Transport Agency Waka Kotahi (NZTA), is expected to contribute approximately AUD 280 million in revenue to Downer. Downer is participating as a member of the Ō2NL South Alliance, which includes McConnell Dowell, Beca, and Tonkin + Taylor. Together, the alliance will be responsible for constructing the 12-kilometre southern section of the 24-kilometre Ō2NL highway corridor. The project forms part of the New Zealand Government’s broader transport infrastructure development program.

The PAA follows an earlier Interim Project Alliance Agreement phase, which lasted more than 12 months and was focused on defining delivery timelines, confirming the project scope, and setting the Target Outturn Cost (TOC). That phase was undertaken collaboratively among alliance members and NZTA to align planning and execution strategies ahead of major works. Early establishment work for the southern section began in July 2025. Main construction activities are scheduled to commence in Spring 2025, with completion and road opening currently targeted for late 2029.

Key features of the southern section include a four-lane highway, a separated shared-use pathway for pedestrians and cyclists, a partial interchange connecting to the local road network, as well as the construction of seven bridges and two underpasses. The infrastructure is intended to support safety and accessibility while accommodating growing transport demands in the Horowhenua and Greater Wellington regions. Downer EDI Limited’s Chief Executive Officer, Peter Tompkins, acknowledged the collaborative nature of the alliance and reiterated the company's role in delivering the project in conjunction with local communities and iwi groups. The alliance approach is intended to incorporate a wide range of stakeholder inputs and ensure long-term community benefits.

Downer EDI is an Australia-based integrated services company that designs, builds, and sustains assets, infrastructure, and facilities across Australia and New Zealand. The company operates across key sectors including transport, utilities, facilities management, and engineering. Its New Zealand operations have been involved in numerous civil infrastructure projects, with a focus on roads, rail, and public services.

The Ō2NL project is part of New Zealand’s Roads of National Significance program and is aimed at improving transport resilience, safety, and efficiency in a rapidly developing region. The southern section’s construction is a significant component of the broader initiative to enhance regional connectivity on the North Island. Downer has stated that it will continue to work closely with NZTA and its alliance partners as construction progresses.

Dow shares traded at AUD 6.91 per share as of 1 August 2025.