FC for New South Wales rail deal

The Northwest Rapid Transit (NRT) consortium has reached financial close on the AUD3.7bn next stage of the Sydney Metro project.

The consortium has refinanced the Sydney Metro Northwest PPP and raised new debt and equity to finance the Sydney Metro City and Southwest PPP.

Equity financing comes from MTR (27.55%), Caisse de dépôt et placement du Québec (24.9%), Marubeni (20%), Plenary (17.55%) and Pacific Partnerships (10%). While, bank debt is being provided by ANZ, Crédit Agricole, HSBC, ING, Intesa Sanpaolo, KfW, Mizuho, MUFG, NAB, OCBC, SMBC, UOB and Westpac.

As previously reported Plenary is also the commercial advisor and financial arranger and Plenary CEO Paul Oppenheim said being able to achieve financial close on the City and Southwest extension while refinancing the existing Northwest PPP at the same time was a significant outcome that delivered certainty and value to the government. 

The contract package includes the delivery of 23 new metro trains and core rail systems as well as operations and maintenance.

The Northwest Rapid Transit (NRT) consortium will operate the combined North West and City and Southwest lines until 2034, providing a turn-up and go service along a dedicated 66km line with 31 stations from Tallawong to Bankstown.

Oppenheim added the performance of the Metro North West Line has been continually improving since it opened earlier this year.

Construction work on the Sydney Metro City and Southwest project is underway, and the line is expected to be operational from 2024.

Meanwhile the Australian and Queensland governments have signed a bilateral agreement to deliver Inland Rail.

Australia’s Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said: “The bilateral agreement signed is backed by the Federal Government’s AUD9.3bn commitment to deliver Inland Rail and is part of the broader AUD25bn commitment we’ve made to road and rail projects across Queensland since coming to Government in 2013.”

Queensland Transport and Main Roads Minister Mark Bailey said that the agreement reached with the Australian Government cements protections for Queenslanders and would see close to AUD2bn in joint-funding fast-tracked for road and rail projects across the state.

A PPP model will be used to deliver the Gowrie to Kagaru section of Inland Rail in Queensland, which comprises approximately 130km of new dual gauge track traversing Toowoomba, the Lockyer Valley, Ipswich and the Scenic Rim.