KUALA LUMPUR (Sept 8): Gamuda Bhd (KL:GAMUDA) and Samsung C&T Corp have been selected by the Australian government as the preferred contractor for the last major contract in Stage 1 of the Marinus Link, an undersea and underground electricity and data interconnector between the states of Tasmania and Victoria.

TasVic Greenlink — the JV between Gamuda’s wholly owned Australian unit DT Infrastructure Pty Ltd and Samsung C&T — was awarded the balance of the works package for Stage 1 on Monday, according to TasVic and MLPL in separate statements.

Marinus Link Pty Ltd, the Australian government-owned entity responsible for the project, said it is in final negotiations with TasVic over the contract, which covers civil and electrical infrastructure works, including converter stations at Heybridge in Tasmania and Hazelwood in Victoria, as well as 90km of land cable works across Gippsland.

“The successful tenderer will need strong local business capability to deliver on this massive construction campaign and we’ve set targets to incentivise this,” MLPL CEO Stephanie McGregor said.

“TasVic is keen to engage with potential subcontractors and suppliers during this next stage of the tender and into construction,” she said.

According to McGregor, nearly 600 stakeholders attended industry engagement sessions in February this year, with more than 500 subcontractors and suppliers already registered through the Industry Capability Network gateway.

Construction for Stage 1 is expected to commence in 2026, subject to regulatory and environmental approvals, with completion targeted for 2030.

“We are excited to be delivering this monumental project in partnership with Samsung C&T. Through our combined expertise, we are delivering a solution that ensures the continuing growth of the renewables sector while connecting communities with low-cost clean energy,” DT Infrastructure CEO John Anderson said.

Samsung C&T Australia managing director Scott Choi said the South Korean engineering giant will leverage its global expertise in high-voltage direct current (HVDC) systems to deliver Marinus Link.

“Samsung C&T is honoured to play a key role in this landmark project connecting Tasmania and Victoria. We are looking forward to collaborating in partnership with DT Infrastructure on this exciting project,” Choi said.

The final contract value under the Tasvic Greenlink JV is expected to be announced by end-September 2025 before work commences in 2026, said CIMB Securities in a note following the news.

The estimated total cost for the first stage of the Marinus Link has been reported to be over A$5 billion (about RM13.9 billion), the research house noted, comprising a single 750MW direct current transmission link and telecommunications connector worth A$3.9 billion and the North West Transmission developments worth A$1.1 billion.

"We estimate the contract to yield modest pre-tax margins of 4–5%, as it mainly involves basic onshore civil works for the electrification system.

"We regard this latest development as a positive for Gamuda, marking another milestone as the group strengthens its presence in the Australian electricity transmission and renewable energy market," it said, as it kept its "buy" call on Gamuda with an unchanged target price of RM6.40.

Gamuda’s shares settled at RM5.59 on Monday, up three sen or 0.54% from its previous close, valuing the construction outfit at RM32.40 billion.