Sedgman Coal chief operating officer Steve van Barneveld said Sedgman had been involved at Bengalla since winning the original CHPP contract in early 1997 and was awarded the upgrade contract through a direct negotiation process.

The Bengalla CHPP, located near Muswellbrook in the Hunter Valley, was designed and built by Sedgman and first commissioned in March 1999.

Under today’s contract, Sedgman will undertake detailed design and construction of the plant expansion, which will increase the raw coal handling capacity and relocate the front end of the CHPP.

Practical completion will occur during 2009.

Sedgman managing director Mark Read said the Bengalla contract maintained the company’s growth momentum with a record number of feasibility studies within the coal division.

“At our 2008 AGM, I outlined a number of exciting projects in our near pipeline that we expect to convert into contracts,” Read said.

“These projects included Bengalla and are worth in excess of $400 million.

“Our strong pipeline and record order book position will result in another strong year of growth for Sedgman and will underpin earnings through 2010 and beyond.”

Sedgman was trading at 79c mid-morning today.