WestConnex motorway PPP

Overview:

• WestConnex, Australia's largest urban road project, with a total value of A$17 billion, has moved into its second stage.
• The project is a 33km motorway programme being delivered through a series of projects in three stages over a period of 10 years.
• The design and construction contract of stage one was awarded to a joint venture of CIMIC Group’s Leighton Contractors and Rizzani De Eccher that was tasked to widen the existing M4 motorway and extend it with twin tunnels.
• Stage two was procured on a PPP (public-private partnership) basis and involves the construction of twin tunnels and double the capacity of the M5 East corridor—the design and construct contract was awarded to the Leighton Dragados Samsung joint venture. 
• Although delivered as a PPP, the debt finance was procured separately from the procurement of the design and construct contract.
• The construction is financed through A$1.5 billion in private sector senior debt and a A$2 billion Australian Government concessional loan structured as a subordinated loan.
• The senior lenders are Commonwealth Bank of Australia, National Australia Bank, Westpac and Credit Agricole. 
• Clayton Utz is advising Roads and Maritime Services, the grantor of the concession for the financing.
• Allens is advising the Commonwealth.
• Minter Ellison is acting for CIMIC Group’s Leighton Contractors /Samsung/Dragados joint venture.
• King & Wood Mallesons is acting for the lenders. 

Adam Majeed - Asia Editor