EOI for tunnelling works for Borumba Pumped Hydro Project now out to market

Another major milestone has been reached on the proposed $14.2 billion Borumba Pumped Hydro Project as Queensland Hydro begins the Expressions of Interest (EOI) process for underground works. 

This announcement follows the project being declared as a coordinated project by Queensland’s Coordinator-General last month. 

The Underground Works – Tunnel Drilling package is the most significant package of works to date and the project team is seeking interest from suitably qualified contractors to design and build an exploratory tunnel at the project site. 

“Queensland Hydro is pleased to release this EOI to the market. We’re excited about this release because it’s the first major package of works since we launched our industry engagement program in July, with three industry events held in Brisbane, Sunshine Coast and Gympie. 

“Attendees came from a broad range of industry including contractors, local suppliers, service suppliers, consultants, equipment suppliers and potential industry partners,” Queensland Hydro CEO Kieran Cusack said. 

This EOI process marks a new phase of critical exploratory works for the Borumba Pumped Hydro Project. The exploratory works are expected to run from late-2023 until mid-2026. 

This tunnelling package will involve excavating soil and rock by utilising controlled blast and drilling methods to form a D-shaped tunnel that leads to the proposed site of the underground powerhouse and transformers cavern. The tunnelling works will compliment surface geological investigations that will provide a detailed understanding of ground conditions that will inform the project’s detailed design and how it is best delivered. 

If the Borumba Pumped Hydro Project proceeds, the temporary tunnel will be converted into one of the access tunnels required in the project design. 

Interested parties can submit an Expression of Interest via QTenders. 

Procurement for the Underground Works package will be undertaken in two phases: 

• Phase 1 – prospective suppliers are encouraged to submit an EOI through QTenders prior to 4 December 2023 
• Phase 2 – proponents who meet the eligibility criteria outlined in the EOI process will be shortlisted, and those successful will be invited to submit a Request for Proposal (RFP). The RFP phase will open in February 2024 

The contract for the Underground Works – Tunnel Drilling package is expected to be awarded in August of next year and works are due to follow in November 2024 – subject to the receipt of all necessary environmental and planning approvals. 

Queensland Hydro has been working with industry to ensure that the project attracts the best delivery partners while also creating opportunities for local and Indigenous businesses. The project team will also work closely with the successful contractor to maximise these opportunities, particularly for local and Indigenous-owned businesses and workers. 

In addition, Queensland Hydro will be using best practice principles from the Queensland Procurement Policy 2023 during the RFP stage, which will include a requirement to demonstrate commitments to local job creation, apprenticeship and training opportunities and local buying. 

“We’ve been working with industry to ensure we attract the best partners for the project while creating opportunities for local industry involvement. 

“Queensland Hydro will work with the successful contractor to maximise opportunities for local and Indigenous businesses and workers to be prepared for, and access opportunities on the exploratory works program,” Mr Cusack said. 

The multi-billion-dollar project will deliver a 2,000MW pumped hydro energy storage system at Lake Borumba in Imbil – in the Sunshine Coast Hinterland. 

The project is proposed to include: 

• A new dam wall 300 metres downstream of the existing Borumba Dam wall to increase the storage capacity of Lake Borumba (lower reservoir) 
• Main dam wall and saddle dams to form an upper reservoir 
• Underground power station, pump turbines and other infrastructure 
• Underground tunnels including water tunnels to transfer water between the upper and lower reservoirs, cable and access tunnels 
• Electrical switchyard for connection between the power station and the transmission network 
• Supporting infrastructure (temporary and permanent) including access roads, maintenance buildings, treatment plants, spoil areas and laydown areas, construction camps and quarries and/or borrow pits 

The Borumba Pumped Hydro Project is estimated to create more than 2,000 jobs during major construction, providing a significant boost to the regional economy. 

In June 2023, the Queensland Government committed $6 billion through the 2023-24 State Budget towards the delivery of this massive project. You can read more about it here. 

“Experts and responsible leaders around the world are recognising the critical role of pumped hydropower in unlocking the capacity of renewables and delivering the clean energy transition. 

“Pumped Hydro offers a trifecta of opportunity by driving sustainable economic growth, bringing wealth and equality to more communities, and combating climate change. 

“The next phase of works on the Borumba Pumped Hydro Project shows how committed Queensland Hydro and the Palaszczuk Government are to delivering this key clean energy project. 

“Throughout construction the project will deliver a significant uplift in jobs and a boost to the regional economy, and once completed, it will also deliver cleaner, cheaper and more secure energy for all Queenslanders 

“As the cornerstone of the Queensland Energy and Jobs Plan, our pumped hydro projects will ensure Queensland remains on track to meeting its renewable energy targets, while ensuring we can continue to put ongoing downward pressure on electricity bills for years to come,” Minister for Energy, Renewables and Hydrogen Mick de Brenni said. 

Source: Queensland Government – Media Statements; Queensland Hydro (1, 2); Queensland Government – Department of Energy and Public Works; Queensland Government – State Development, Infrastructure, Local Government and Planning; Sunshine Coast News