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Case study

Transgrid - Hume Link

Estimated project value

$3.3 billion

Our involvement

2021 – 2022

Our role

Procurement Strategy

Delivery Strategy

Development of commercial principles for a competitive ECI (stage 1 and stage 2) and EPC contract model

Cost and Schedule Review

Project Description

The Project is a new 500kV transmission line (double circuit) which will connect Wagga Wagga and Bannaby. It is one of the state’s largest energy infrastructure projects, with 385 kilometres of proposed new transmission lines, and new or upgraded infrastructure at four substation locations.

The HumeLink is being constructed to support Australia’s transition to low-emission renewable energy sources, such as wind and solar, including unlocking the full capacity of the expanded Snowy Hydro Scheme.

Transgrid Hume Link

Key interface projects identified by AEMO’s Integrated System Plan (ISP) 2023 will include Project Energy Connect (PEC) at Wagga Wagga REZ NSW N7 & N8, and the Snowy 2.0 connection project.

Importantly, HumeLink is a critical enabler of the transition to renewable energy.

Our Involvement

ProSquared worked closely with Transgrid (inclusive of the executive team and the project team) to provide commercial and technical expertise during the development phase and the production of the delivery procurement strategy of the project.

The scope included preparation of the Delivery Procurement Strategy for the project including providing specialist advice in relation to the commercial principles and packaging, and programming in relation to logistical and supply chain issues. The analysis build upon works previously undertaken by Transgrid in relation to a project information document and an incomplete and out of date project implementation plan (PIP).

Our team was also part of the initial Executive Steering Committee and then followed onto the monthly PCGs. Our team also attended supply chain workshops to understand how Transgrid could potentially purchase long lead items that would be on the critical path.

Working collaboratively with Transgrid’s leadership and the commercial and procurement teams, we prepared and finalised the Strategy Roadmap for a true Early Contractor Involvement (ECI) for an EPC delivery model that would align with the AER’s contingent project approval thresholds (CPA1 and CPA2).

Based on the Strategic Roadmap, the preferred model was to progress through an ECI (aligned with CPA1). This will achieve market input to the CPA2 Final Investment Decision and provide Transgrid with maximum flexibility in selecting the final delivery model for implementation of the Project during ‘works delivery’ or CPA2.

Advice on bid cost reimbursement was provided using benchmarked rates.

Our results were presented systematically in a project health check report.