Indigenous construction company Tiwi Partners has been contracted to deliver a $7 million explosive ordnance storage facility at RAAF Base Darwin.
Minister for Defence Industry Melissa Price said Tiwi Partners is expected to engage 95 workers during the project's construction phase, while 96 per cent of sub-contract packages will go to industry within 50 kilometres of RAAF Darwin.
"This is a significant investment in the Northern Territory economy which is supporting local businesses and jobs in the Top End," Minister Price said.
"These works will support Royal Australian Navy vessels operating in the North.
"They will include the construction of a new, special-purpose, earth-covered building within the existing explosive ordnance precinct at RAAF Base Darwin to support the Arafura Class Offshore Patrol Vessels."
It comes after Minister Price held talks with Master Builders NT last week to discuss Defence's $3.5 billion infrastructure investment plan for the NT as part of an $8 billion investment in Northern Australia over the next decade.
This latest project has also come at a critical time as Australia continues to navigate its way through the COVID-19 pandemic.
"Our investment in RAAF Darwin was brought forward as part of the government's $1 billion investment package to boost Australia's defence industry during the COVID pandemic," Minister Price said.
"This package saw $190 million of investment just in the Northern Territory to support jobs and the local economy."
"It's also part of the $2.1 billion Navy Capability Infrastructure Sub-program, delivering maritime and landside facilities across Australia."