The Australian Department of Defence has announced a nearly $120m (A$155m) investment in new and upgraded facilities at naval base HMAS Cairns.

The latest investment in facilities will support the Royal Australian Navy’s (RAN) new Arafura-class offshore patrol vessels (OPV).

Watpac Construction has been appointed as the managing contractor to deliver construction services for the NCIS-8A HMAS Cairns Building and Maritime Works package.

Australia Prime Minister Scott Morrison said these investments are part of the government’s $208.4bn (A$270bn) commitment to the country’s defence capability under the ‘2020 Force Structure Plan’ released in July last year.

Morrison said: “The upgrades at HMAS Cairns will create local jobs both during the construction phase and afterwards through ongoing sustainment.

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“More jobs will be created through the supply chain and in off-site manufacturing. This investment will be a significant boost to the local Cairns economy as we recover from the Covid-19 pandemic.”

Australia Defence Industry Minister Melissa Price said the upgrade is part of the A$2.1bn Navy Capability Infrastructure Sub-programme to deliver maritime and landside facilities.

Watpac will implement a ‘Local Industry Capability Plan’ to increase opportunities for local businesses in the supply of goods or services.

To create more local jobs, the project sets a target of some 80% of subcontract packages being awarded to local businesses in the Greater Cairns Region.

Price said: “Works will include demolition of the existing navy wharf and construction of a new wharf in its place, and an upgrade of the existing explosive ordnance loading buoy in Trinity Inlet.

“Landside operational support facilities will include a new office building, upgrades to maintenance and logistics facilities, and new storage facilities.”