The Government of Australia has announced over A$220m ($162.36m) investment for major infrastructure upgrades at Royal Australian Air Force (RAAF) Base Edinburgh.

This is expected to increase opportunities for South Australian businesses amid the Covid-19 pandemic.

Work will include the building of a hangar, maintenance facilities, and operational accommodation.

This is expected to aid the RAAF’s intelligence, surveillance, reconnaissance and electronic warfare capability, MC-55A Peregrine.

Australian Defence Minister Linda Reynolds said: “The Peregrine will be integrated real-time into defence’s warfighting networks alongside other defence capabilities to enhance Australia’s situational awareness during both peacetime and conflict.

“The Peregrine integrates with other latest generation air, sea and land capabilities to achieve improved survivability and decision superiority.

“Today’s announcement builds on this government’s A$2.5bn ($1.84bn) investment in South Australia on defence facilities and infrastructure over the coming decade, including at Edinburgh Defence Precinct, Woomera Prohibited Area, Keswick Barracks, and the Cultana Training Area.”

Lendlease will be the managing contractor, which will carry out the work for the airbase.

Australian Defence Industry Minister Melissa Price added that the project will employ around 200 people at its peak.

The company will start work on site establishment activities later this year, with completion expected by 2025.

It will launch the request for tenders for participation from local companies mid next year.

Earlier this month, the Australian Department of Defence announced that Victoria-based Air Fab has received a contract to build aircraft safety stands.