Australia’s largest ever PPP, the North East Link road PPP project in Melbourne, has reached Financial Close (FC).
The longest of its kind in the state, the A$11.1bn project will see two 6.5km three-lane tunnels in the city centre, closing an important “missing link” in the city’s network.
The Spark Consortium, which consists of John Laing, WeBuild, GS Engineering and Construction, CPB Contractors, China Construction Oceania, Ventia, Capella Capital, DIF and Pacific Partnerships, were selected as the preferred bidder on the project earlier in June this year, beating teams including Plenary, Egis, CIMIC and others.
The deal features an “unprecedented” long-term financing structure, with the operation and maintenance set to have a 25 year duration.
“The project’s unique and innovative ITC PPP contract proves the viability and value for money of the PPP model and we look forward to utilising this model to ensure the successful delivery of the project,” said Capella Capital’s managing director Malcolm Macintyre.