Construction will start on the 11-kilometre twin metro rail tunnels between Sydney Olympic Park and The Bays after the Acciona joint venture secured the $2 billion contract.

New South Wales Minister for Transport and Roads Andrew Constance said the mega tunnel boring machines would be in the ground before the end of next year under the contract awarded to Acciona Construction Australia Pty Ltd and Ferrovial Construction (Australia) Pty Ltd Joint Venture.

“[This] historic milestone is a massive step towards delivering Metro West which will double rail capacity between Greater Parramatta and the Sydney CBD, transforming our city for generations to come,” Constance said.

“These tunnels mean you’ll be able to get from Parramatta to the Sydney CBD in around 20 minutes on a fast, safe and reliable driverless metro train, forever changing how we move around Sydney.

“Sydney Metro West will create more than 10,000 direct new jobs and 70,000 indirect jobs, with many of these jobs generated by this major contract.”

The Sydney Metro West project, reportedly costing about $27 billion, will connect Parramatta to the CBD in around 20 minutes and is forecast to double rail capacity between Greater Parramatta and the Sydney CBD.

The contract for the “once-in-a-century” infrastructure investment includes the delivery of the twin 11km metro railway tunnels, excavation and civil works for five new stations at The Bays, Five Dock, Burwood North, North Strathfield and Sydney Olympic Park.

The Acciona JV will use two double-shield hard rock tunnel boring machines to create the tunnels, along with 70,000 concrete segments to line the twin tunnels.

The Acciona JV was awarded the first of the three major tunnelling contracts through a tender process between three shortlisted companies, despite a legal dispute that raged between the NSW government and Acciona in 2019 over Sydney’s light rail.

The NSW government compensated the Spanish organisation $576 million.

The remaining two tenderers John Holland, CPB Contractors and Ghella Australia Joint Venture; and Gamuda and Laing O’Rourke Australia Joint Venture will vie for the Western Tunnelling Package, a 9km twin tunnel stretching between Westmead and Sydney Olympic Park.

The contract was due to be awarded at the end of this year.

Completion of the Acciona JV tunnelling contract is expected at the end of 2025.

When complete, Sydney Metro West will service Westmead, Greater Parramatta, Sydney Olympic Park, The Bays Precinct and the Sydney CBD.