TEXT-Leighton unit gets A$625 mln pipeline contract

(Following is the text of a release by Australian engineering firm Leighton Holdings Ltd (LEI.AX))

SYDNEY, Dec 21 - John Holland is pleased to announce that it has been awarded the $625 million contract to construct the 70 kilometre Sugarloaf Pipeline, a major drought-proofing measure linking the Goulburn River to Melbourne's Sugarloaf Reservoir.

The $625 million pipeline is one component of the Victorian Government's Our Water, Our Future plan to secure Victorian water supplies for the long term. The Pipeline will transfer 75 billion litres of water to Melbourne, helping to modernise the Food Bowl irrigation system and saving 225 billion litres of water each year.

The contract is an alliance between Melbourne Water, John Holland and designers SKM and GHD. Construction of the Sugarloaf Pipeline will combine John Holland's Southern Region construction business with the specialist capabilities of John Holland's Water and Structural Mechanical Process businesses.

John Holland Group Managing Director, David Stewart said: "The Sugarloaf Pipeline project is critical to securing Melbourne's water supply. John Holland is delighted to bring our diverse expertise and longstanding experience to this new alliance with Melbourne Water."

The initial development phase of the project will commence immediately, involving extensive survey works and community consultation program. Construction of the pipeline is expected to begin in April 2008 and to be completed in 2010.

General Manager of John Holland Southern Region, Peter Kessler commented: "With the Sugarloaf Pipeline, John Holland is excited to renew its decade-long relationship with Melbourne Water. We applaud Melbourne Water's selection of a relationship-based contracting model and look forward to delivering this essential infrastructure for the state of Victoria."