Alinta holds a long-term power purchase agreement with the Roy Hill project, and the new contract is stage one of its east Pilbara link project.

The contract covers design, construction, and commissioning of 120km of 220kV single circuit transmission line between the Newman power station and Roy Hill.

It will also include a 66/220kV substation and associated 66kV connecting works at Newman, along with a 220/33kV substation at Roy Hill.

Further works include a 6Mw reciprocating diesel power station and 33kV electrical distribution system, both at Roy Hill.

Early works have already started and completion is scheduled for March 2015.

UGL CEO Richard Leupen said the project was a significant win for the company’s power systems business, and an important step in supporting Alinta's growing power generation and transmission presence in Western Australia.

“Across the infrastructure sector, we are encouraged by improving levels of activity with strong growth in UGL’s tendering pipeline, particularly in power, transport systems and rail infrastructure projects,” he said.

“UGL is well positioned to benefit from this increased momentum as new projects commence.”

Alinta said the transmission line was an important milestone for its Pilbara operations, including the contract with Roy Hill.

UGL shares were steady at $7.02 today.