The Cimic Group Ltd (ASX: CIM) share price is edging higher today. This comes after the engineering company gave a positive update about the Victorian government's North East Link project.
At the time of writing, Cimic shares are up 0.65% to $20.14.
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What did Cimic update the ASX with?
According to a statement, Cimic subsidiaries are among those selected as the preferred proponents for Melbourne's $8 billion North East Link Primary Package. The Victorian government opted for Cimic companies Pacific Partnerships, CPB Contractors and its 50%-owned Ventia.
In addition, other members of the Spark consortium have also been chosen. They are WeBuild, GS Engineering and Construction, China Construction Oceania, Capella Capital, John Laing Investments and DIF.
The North East Link Primary Package public-private partnership will involve the construction of 2 three-lane tunnels about 6km in length.
They will pass under Banyule Flats and the Yarra River, connecting the Metropolitan ring road (M80) and Eastern Freeway (M3).
Up to 135,000 vehicles are expected to use the North East Link each day, reducing congestion on other major roads.
Subject to contract execution later this year, construction should be completed around 2027.
Cimic Group executive chair and CEO Juan Santamaria commented:
We are pleased to be part of such an important project for the people of Victoria. CIMIC Group's role extends from end to end – from development to delivery and long-term asset management – in the biggest road transport project in Victoria's history.
About the Cimic share price
The last 12 months have seen the Cimic share price fall by around 17%. This includes a 16% drop on 10 February when the company released its full-year results.
More recently, Cimic shares hit a 52-week low of $16.86 in April before climbing to their current levels.
Cimic has a market capitalisation of roughly $6.3 billion, with approximately 311 million shares outstanding.
