- Australian High Commission Project, Abuja, Nigeria
Department of Foreign Affairs and Trade
3.1The Department of Foreign Affairs and Trade (DFAT) seeks approval from the Committee to proceed with its proposed Australian High Commission Project in Abuja, Nigeria.
3.2This work is the second stage of the Abuja Australian High Commission (ACH) project, with the first stage approved by the Committee as a medium work in 2019. In stage one DFAT leased a compound from Siemens with the intention to later purchase and redevelop the property as a permanent AHC compound. In the interim, an existing site building was repurposed for use as a chancery, with other accompanying works also taking place. DFAT purchased the site in 2021.
3.3DFAT advised that the purpose of the second stage of the project is to construct a new chancery compound on the Siemens site. The works will include the construction of a permanent purpose-built chancery, a new Head of Mission (HOM) residence (currently leased offsite) and supporting staff and security facilities.
3.4The total estimated cost of the project is $38.3 million (excluding GST).
3.5The project was referred to the Committee on 24 November 2022.
Conduct of the inquiry
3.6Following referral, the inquiry was publicised on the Committee’s website and via media release.
3.7The Committee received one submission and one confidential submission to the inquiry. A list of submissions can be found at Appendix A.
3.8On 15 March 2023 the Committee conducted a private briefing in lieu of a site inspection, which was followed by a public and in-camera hearing at Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.9The project works are being conducted under the Security Enhancement Program and are in response to ‘the forecast future threat environment’. In a series of assessments conducted between 2009 and 2016 by DFAT’s Diplomatic Security division, the previous Australian High Commission in Abuja, located in the Oakland Centre, was found to be inadequate due to its high security threat environment. DFAT stated that ‘the location of the old chancery was considered vulnerable, as it was within a commercial premise that was easily accessible with no setbacks or security hardening’.
3.10DFAT conducted an assessment in June 2018 and found the Siemens compound, with a total area of 7,127m2, to be a suitable location for the Australian High Commission in Abuja. This assessment was subject to additional security and building works which formed part of the Phase 1 works. In 2019 the Commonwealth leased the compound, with intention to later purchase and redevelop it as a permanent Australian High Commission compound. The purchase was completed in 2021.
3.11Having an Australian High Commission in Abuja allows Australia to showcase its physical presence in Nigeria, and more widely in West Africa. Australia has a range of national interests in Nigeria, including ‘trade and investment, human rights, security and counter-terrorism, and safeguarding support for our multilateral positions and candidacies’.
3.12At the public hearing DFAT further stated that:
Australia and Nigeria signed a memorandum of understanding in 2012, covering political, economic, commercial, scientific, technical and cultural co-operation. As a reflection of the relationship, Australia operates a high commission in Abuja. The high commission also acts as a hub for the West African region, including Benin, Cameroon, Gabon, The Gambia and Niger, and provides representational spaces in which to showcase Australia diplomacy, public trade and cultural affairs.
3.13DFAT highlighted that Australia has opportunities in Nigeria, which is the most populous country in Africa with a population of 206 million, two thirds of whom are under the age of thirty. Key opportunities include trade growth from its current modest level of $295 million (in 2020-21), and a potential source of international students. A new chancery and HOM will support the facilitation of trade development opportunities.
Options considered
3.14In its submission DFAT outlined the options that were considered as part of stage 1 of the project to address the need for the relocation and establishment of a permanent chancery. These options are listed below:
- Option 1: Alternate Leased Commercial Space –relocation of the Australian High Commission to alternate leased premises within a commercial development.
- Option 2: Purchase Property and Construct New Chancery and HOM Residence - lease/purchase of a free-standing property that would enable the construction of a new permanent chancery and HOM residence with appropriate security measures.
- In 2018, five commercial operations were considered by DFAT under Option 1. Each of the five sites were found to be unsuitable due to insufficient security in and around the proposed buildings. As such, Option 1 was discounted.
- Option 2 was found to be the best option to support DFAT’s operational requirements as it would provide a ‘contemporary, purpose-built chancery that will meet security requirements and facilitate DFAT controlling entry access and egress from the site’. Option 2 also allowed the construction of a HOM within the site, which would reduce the required property and security footprint within the country.
Scope of the works
3.17Following the successful delivery of the new Australian Embassy in Rabat, Morocco, DFAT seeks to use an Australian modular prefabricated approach for the construction of the new facilities in Abuja. Each building will be constructed and commissioned in Australia, dismantled, shipped, and reassembled on-site in Abuja.
3.18The option to employ a prefabricated approach for the works was expanded upon during the public hearing:
The project will employ a two-stage design-and-construct delivery methodology. Given the region's high-threat security situation and remote location, we propose to utilise a modular construction methodology. The modular construction and delivery methodology will allow the buildings to be constructed and fitted out in Australia, to Australian legislative and quality standards. It will also shorten the onsite construction period. The works will be staged, to maintain the functionality of the interim chancery while the new permanent chancery and head-of-mission residence are constructed. This will remove the requirement to relocate temporarily during the construction period.
3.19DFAT also told the Committee that the modular, prefabricated methodology also provides an improved design life and warranty with this product of up to 20 years, as opposed to the usual seven to ten years’ warranty for standard builds.
3.20This phase of the Abuja Australian High Commission project will include the following scope items:
- demolition of the existing interim chancery
- construction and fit-out of a two-storey permanent chancery
- construction of a two-storey Head of Mission residence
- construction of two guardhouses with sallyports
- construction of staff facilities
- demolition of services and other existing buildings
- construction of new service facilities and landscaping.
- The new chancery will have a net lettable area of 515m2 and a gross floor area (GFA) of 676m2 over two levels. There will also be 201m2 for storage, car parking and services meeting space. DFAT considers that this will meet space and functional requirements. DFAT also noted that the new chancery will provide 18 work-points, with an occupational density of 17.3m2 of usable office area per work-point.
- In comparison the interim chancery was 485m2 with a net lettable area of 377m2 and a usable office area of 279m2.
- Construction works will be staged, with the demolition of the interim chancery to occur after the new chancery is constructed and commissioned. This will ensure that chancery services can continue to operate throughout the project.
- An indicative site plan which establishes the proposed layout of the Australian High Commission in Abuja was included in DFAT’s submission to the Committee.
Community and stakeholder consultation
3.25During the early project development process, key local authorities have been consulted including:
- the Federal Capital Development Authority (FCDA). The FDCA oversees the development of the buildings and infrastructure within Abuja, where the Australian High Commission is located
- the Abuja Metropolitan Management Council (AMMC) which operated and provides municipal services
- the Department of Urban Planning which is the local authority for planning and building permits.
- DFAT noted that feedback from each authority has been favourable.
- DFAT Diplomatic Security division has also been consulted on the preliminary and technical security requirements of the new chancery. During the establishment of the interim chancery this division had provided significant input.
- In July 2022 the Design and Construct contractor visited Abuja to undertake preliminary discussions with authorities in advance of the second phase of the chancery project. The purpose of this visit was to acquire an understanding of the requirements for development submissions and to understand the support required by Australian High Commission staff in Abuja to facilitate the timely submission, review, and approval of the works.
Cost of the works
3.29The proposed works has an estimated cost of $38.3 million. DFAT advised that:
The out-turn cost estimate has been developed by cost planners, TT, and includes demolition, construction of the works and all other related elements such as design consultant fees, project management, supervision, and site office expenses. Escalation risk will be borne by the contractor, but foreign currency risk remains with the Commonwealth.
3.30DFAT provided further details on project costing in its confidential submission and during an in-camera hearing.
Revenue
3.31There will be no revenue generated by this project.
Public value
3.32The construction of a permanent chancery building and HOM residence with staff and security facilities in Abuja will enable the Australian Government to meet its operational requirements, and to account for future foreign policy objectives and needs. Important services that the chancery will provide include passport services and consular assistance to Australian citizens in the region.
Committee Comment
3.33The Committee noted that the prefabricated modular methodology being employed in the project would better enable DFAT to meet its security obligations and ensure compliance with building standards. The Committee was pleased to see that the prefabricated methodology would also benefit the Australian manufacturing industry due to the buildings being constructed and fitted out in Australia.
3.34The increased design life warranty of the modular build, and the extended expected lifespan of the buildings was of particular interest to the Committee, being longer than average and offering greater value for money.
3.35The Committee was satisfied with the proposed project and considers that it has merit in terms of need, scope and cost.
3.36Having regard to its role and responsibilities contained in the Public WorksCommittee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project that is fit for purpose, having regard to the established need.
3.37The Committee recommends that the House of Representatives resolve, pursuant to Section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Foreign Affairs and Trade - Australian High Commission Project Abuja, Nigeria.
3.38Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post‑implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.
Mr Graham PerrettMP
Chair