Nova Nacap, a US-Australian joint venture, has secured a contract to build a bulk fuel facility at the Royal Australian Air Force (RAAF) Base Tindal.

Announced by the Australian Department of Defence (DoD), the contract has an estimated value of $80.65m (A$120m).

The new contract has been awarded as part of the US Force Posture Initiatives, funded by the US for infrastructure development. This initiative is an extension of existing Australia-US defence alliance.

US Force Posture Initiatives director general air commodore Sandy Turner said: “The A$120m project will provide fuel storage and associated infrastructure at RAAF Base Tindal to support Enhanced Air Cooperation under the US Force Postures Initiatives.

“This US contract also provides opportunities to Australian sub-contractor Saunders International, which has been awarded a $5.71m (A$8.5m) sub-contract to Nova Nacap to construct bulk fuel storage tanks.”

The DoD informed that the latest contract will be executed parallelly with other RAAF Tindal projects being carried out under Australian-funded A$1.5bn programme, which started in late 2020.

The project includes modernisation of RAAF Tindal airfield and related infrastructure.

Currently, the US and Australia are funding various projects under the US Force Posture Initiatives to strengthen Australian industry partners across several sectors, such as logistics, maintenance, construction and professional services.

Since the launch of the US Force Posture Initiatives, different Australian companies and joint ventures have been awarded four of five US-funded contracts.

Together, the four contracts are valued at approximately $198.4m (A$296.2m).

Apart from RAAF Base Tindal project, the US initiative also covers various other infrastructure projects across different Australian DoD sites.

The locations majorly include RAAF Base Darwin, Australian Army’s Robertson Barracks installation along with some training ranges and areas in Northern Territory.