Financial close reached for Queensland rolling stock PPP
- Itochu Corporation
- John Laing
- Macquarie Capital - Macquarie Group
- Mizuho Bank
- Sumitomo Mitsui Banking Corporation (SMBC)
On January 15, 2014, the NGR Consortium achieved financial close upon concluding a project agreement with the Queensland Government for the New Generation Rolling Stock PPP Project.
The total value of the contract is approximately AU$4.4 billion (US$4.1 billion) with Bombardier's share valued at approximately AU$2.9 billion (US$2.7 billion).
The project is being financed jointly by the public and private sector using an availability payment public-private partnership finance option, a similar model as successfully used for Australia's Gold Coast Rapid Transit. The four consortium members are equity partners for the project. Macquarie Capital acted as financial adviser to the consortium.
Four Japanese banks - Mizuho Corporate Bank, Shinsei Bank and Sumitomo Mitsui Trust Bank, Aozora Bank will be a part of an international banking group who will provide project finance for the project.
The project scope includes the delivery of 75 new six-car trains, maintenance services for a period of 30 years and the construction of a purpose-built maintenance centre under a 32-year public-private partnership. The consortium is expected to deliver its first train by end of 2015, complete the delivery of all trains by the end 2018 and provide maintenance services until 2046. The depot design and construction will be subcontracted to Laing O'Rourke.
The New Generation Rollingstock project will boost commuter services for the densely populated areas of South East Queensland. The State of Queensland, the third largest state in Australia whose current population is 4.7 million people, expects a population growth of 2.3 million over the next 18 years.