By Robb M. Stewart 
 

MELBOURNE, Australia--A 2.81 billion Australian dollar (US$2.12 billion) contract to build a new metro railway crossing deep under Sydney Harbour has been handed to contractor Cimic Group Ltd. (CIM.AU) and its partners.

In a statement Thursday, Cimic said its joint venture had been selected by the government of New South Wales state to deliver the twin 9.6-mile tunnels and associated civil works on the second stage of the Sydney Metro project, the country's largest public transportation project.

Excavation work on the tunnel and station is expected to start in the coming weeks, and the contract is set to conclude in mid-2021.

In mid-2016, Cimic, John Holland and another partner completed tunnels and station work for the A$8.3 billion Sydney Metro Northwest project, the first phase of the broader project. The venture was selected for a A$1.15 billion contract in June 2013 to build what at the time were Australia's longest railway tunnels in Sydney, as well as five new stations and two service facilities.

The venture includes Cimic's CPB Contractors unit and China Communications Construction Co.'s (1800.HK) with equal 45% stake and construction firm Ghella SpA with a 10% interest.

Design and construction work under the latest contract includes the twin tunnels under the harbor and central business district, excavation of six new underground rail stations, and the demolition and removal of existing buildings on the construction sites.

In January, the state government said it had received two tenders for the construction of the tunnels under the harbor, extending rail services from Sydney's booming northwest region through new underground central stations and beyond to Bankstown.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 21, 2017 20:50 ET (00:50 GMT)