Investment bank 3347 Goldman Sachs will soon be sending out expressions of interest for backers to finance Australia’s biggest road deal, the three-stage WestConnex project to be rollout by the New South Wales government.
According to a report by The Australian newspaper, initially around US$1.17 billion will be needed for the first phase of the Sydney toll road project. The first phase will likely cost between nearly $2.35 billion and $3.9 billion.
Total cost of all three phases over 10 years could be as much as $11.6 billion and the 33kmk of new roads will connect the south-west and western parts of Sydney with the airport, city and port.
Among the Australian lenders expected to be interested in the public-private partnership are Commonwealth Bank, ANZ, Westpac and NAB.
The Australian reported that details will soon emerge surrounding traffic forecasts on the first phase, along with the award of construction contracts.
Exactly what shape the PPP contract will take remains to be seen. It is a sensitive issue, The Australian said, since the collapse of the two PPP toll projects in Sydney. Both Lane Cove Tunnel, a 3.6km twin-tunnel, and Cross City Tunnel, a 2.1km twin-tunnel, went into receivership when traffic forecasts proved inaccurate.
The Australian report said one PPP option is for a shadow toll, where construction company receives a payment per driver from the government.
Earlier this month3260 World Highways reported that a joint venture featuring 4755 John Holland, 1026 Samsung C&T and 2685 Leighton Contractors had secured a deal to build and design Sydney’s M4 East motorway.
The M4 East is expected to be completed in 2019 when it will form part of a project to build the WestConnex road tunnel.
Last December, Duncan Gay, roads minister of New South Wales, announced changes to the third phase of the WestConnex motorway. Tunnel will be 8km, around 1km longer than initially planned.
However, the changes likely won’t add to the overall price tag for the project, according to the NSW government. The third stage would cover the route between Haberfield and St. Peters and be constructed between 2018 and 2023. The tunnel will be linked to two other large motorway tunnels that include an M4 extension to Harbefield and M5 East tunnel to St. Peters.
Works to build WestConnex will start next year with the $3.3 billion widening and extension of the M4 to four lanes each way from Parramatta to Haberfield, including a tunnel beneath-Parramatta Road.
According to a report by The Australian newspaper, initially around US$1.17 billion will be needed for the first phase of the Sydney toll road project. The first phase will likely cost between nearly $2.35 billion and $3.9 billion.
Total cost of all three phases over 10 years could be as much as $11.6 billion and the 33kmk of new roads will connect the south-west and western parts of Sydney with the airport, city and port.
Among the Australian lenders expected to be interested in the public-private partnership are Commonwealth Bank, ANZ, Westpac and NAB.
The Australian reported that details will soon emerge surrounding traffic forecasts on the first phase, along with the award of construction contracts.
Exactly what shape the PPP contract will take remains to be seen. It is a sensitive issue, The Australian said, since the collapse of the two PPP toll projects in Sydney. Both Lane Cove Tunnel, a 3.6km twin-tunnel, and Cross City Tunnel, a 2.1km twin-tunnel, went into receivership when traffic forecasts proved inaccurate.
The Australian report said one PPP option is for a shadow toll, where construction company receives a payment per driver from the government.
Earlier this month
The M4 East is expected to be completed in 2019 when it will form part of a project to build the WestConnex road tunnel.
Last December, Duncan Gay, roads minister of New South Wales, announced changes to the third phase of the WestConnex motorway. Tunnel will be 8km, around 1km longer than initially planned.
However, the changes likely won’t add to the overall price tag for the project, according to the NSW government. The third stage would cover the route between Haberfield and St. Peters and be constructed between 2018 and 2023. The tunnel will be linked to two other large motorway tunnels that include an M4 extension to Harbefield and M5 East tunnel to St. Peters.
Works to build WestConnex will start next year with the $3.3 billion widening and extension of the M4 to four lanes each way from Parramatta to Haberfield, including a tunnel beneath-Parramatta Road.
