We are pleased to present the 2018-19 Annual Report for Australian Naval Infrastructure Pty Ltd.

Since its formation in March 2017, ANI’s primary objective has been to support the Commonwealth’s continuous naval shipbuilding program by being the owner and developer of infrastructure and related facilities. In addition, ANI has been tasked with providing access, and efficiently and effectively managing the infrastructure in a manner that ensures an integrated and coordinated approach to Program delivery.

The past year has seen ANI transition from an establishment and consolidation phase towards an operational steady state. In addition, ANI’s role as principal for the development of the future submarine yard infrastructure on behalf of the Department of Defence was confirmed by Shareholder Ministers. This project is referred to as the Osborne North Development Project (ONDP).

In support of its objectives, ANI has progressed the acquisition of land and roads at Osborne, South Australia to facilitate the ONDP. All property acquisitions required for the ONDP are now contracted. The ONDP involves the construction of new facilities at Osborne North to support the construction of the future Attack class submarine fleet by Naval Group. A significant milestone for the year included the appointment of Laing O’Rourke as Managing Contractor for the ONDP on 27 November 2018, following a competitive tender process.

In support of the Commonwealth’s finalisation of the Strategic Partnering Agreement with Naval Group, ANI executed preliminary access arrangements with Naval Group in February 2019. Access agreements were also executed with the Air Warfare Destroyer (AWD) Program and the Offshore Patrol Vessel (OPV) Program in April 2019 for the Osborne South shipyard.

Significant progress has been made on the Osborne South Development Project (OSDP), which is being delivered with the Managing Contractor, Lendlease. Works have progressed to schedule and are tracking to achieve cost targets. As at 30 June 2019, the main works were 61% complete on the critical path. The main works remain on schedule for completion by the end of March 2020. In addition, ANI has progressed planning for the modernisation of existing facilities at Osborne South, and the implementation of precinct wide utilities relocation works.

ANI is progressing negotiations with ASC Shipbuilding for an access agreement for the Osborne South shipyard for the Hunter class Frigate Program, in readiness for access upon completion of the new facilities.

The past year has also seen ANI continue to build its organisational capability through the recruitment of key personnel in support of its major projects, and the continued development of its systems and processes, including achievement of Defence Industry Security Program (DISP) accreditation.

In fulfilling its primary object as the owner, developer and manager of critical shipyard infrastructure, ANI has made significant progress in the last year, and is on track to deliver the new shipyard to facilitate the commencement of the Hunter class Frigate Program in 2020.

Chair

Managing Director and CEO

12 September 2019