Snowy Mountains Engineering Corporation to set up projects office in Perth

12/4/95

The Snowy Mountains Engineering Corporation is to set up an international project management office in Perth to tap Western Australia's big pool of expertise and win overseas aid projects.

The move is likely to bring big business to this State by helping WA companies to get a bigger share of the $1.4 billion which Australia spends on aid to developing countries every year.

"The Government is delighted that a company with the reputation and experience of the Snowy Mountains Engineering Corporation (SMEC) has agreed to establish itself in this State," Commerce and Trade Minister Hendy Cowan said today.

"SMEC is one of the world's leading engineering consultancy firms.  Its presence will allow WA industry to tap into the big potential which exists for aid-related projects.

"The corporation has a strong record in project management and delivery which will complement the wide range of expertise and resources available in this State."

SMEC's move to WA has been negotiated under the Department of Commerce and Trade's Locate to Western Australia program.

SMEC was established by the Federal Government to put in place the massive Snowy Mountains power and irrigation project in the years after World War II.  It expanded into engineering and infrastructure project management, and was bought out by 150 of its staff some two years ago. Total staff number about 300.

SMEC proposes to relocate three of its senior management to Perth from its current headquarters in Cooma, NSW, and will employ support staff locally.

"We are confident that the benefits to our company and to WA will start to be realised fairly quickly," SMEC's chief executive, Mr Jack Boniface, said.

"We can already identify a number of priority prospects which the venture should target.

"SMEC is also currently the major contractor to the Australian Agency for International Development (AusAid) for all commodities assistance programs, including the procurement of Australian goods, equipment and materials worth many millions of dollars annually."

Mr Cowan had earlier commented on WA's poor ranking in terms of the number and value of aid contracts awarded.

"The overwhelming majority of aid-related work is going to Eastern States-based companies," he said.

"Only about one per cent of the $1.4 billion annual aid budget finds its way to WA.

"SMEC's presence in this State will ensure we develop better links with bilateral and multilateral aid agencies to ensure that our industry can win its fair share of aid-related contracts."

Apart from its strong links with AusAid, SMEC has extensive links with the Asian Development Bank and the World Bank.  The company has completed projects in more than 60 countries.

SMEC has established an international reputation across a broad range of industry sectors for project delivery and continues to win prestigious and high-profile projects against strong international competition.

Mr Cowan said the financial incentives offered to SMEC under the Locate to Western Australia program totalled $49,000 and involved assistance with travel, accommodation and relocation expenses for staff and office rent subsidisation.

The Locate to WA program had already attracted a range of international firms to set up regional offices in the State.

"The Government is now finalising a range of initiatives under the trade-through-aid strategy to increase the level of our private/public sector involvement in aid funded projects," Mr Cowan said.

Media contacts: Peter Jackson (09) 222 9595

Ids Groenhout (SMEC) (064)520543