MegaProject 1042: Ferrovial’s consortium to deliver the US$1.4B Western Roads Upgrade project in Melbourne
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Cintra, subsidiary of Ferrovial, through the Netflow joint venture recently formed with Plenary, has been selected by the State of Victoria as Preferred Respondent for the design, construction and financing of works to upgrade and rehabilitate the suburban road network in the western of Melbourne, as well as its maintenance.
The value of the contract is AUD1,800 million (US$1,276 million).
The Western Roads Upgrade project includes the upgrade and duplication of six suburban arterial roads, the construction of two new interchanges and the rehabilitation and maintenance of the more than 700-lane-kilometres road network located in the west of Melbourne.
Cintra, and its partner Plenary, will be responsible for the development of the project. WBHO Infrastructure will be in charge of the construction works that comprise the project. In addition, Ferrovial’s subsidiaries Amey and Broadspectrum will be responsible for the maintenance of the network.
Enrique Díaz-Rato, Cintra’s CEO, said:
“Being selected as preferred respondent in this project represents an important achievement for Cintra in Australia. In addition, it strengthens our relationship with Plenary through the Netflow joint venture. Our team in Australia is fully committed to improving the mobility of its residents, providing opportunities for local economic growth and serving current and future needs in the country.”
The delivery of the Western Roads Upgrade project will increase capacity on the network and increase driver safety in one of Melbourne’s areas where population growth is expected to increase faster in the coming years.
The concession term will be over a 20-year period from the end of construction work completion, expected for 2020. In the coming months the consortium will work to achieve financial close. Design and construction works will start as soon as financial close has been achieved.
The project is the second investment of Ferrovial in Australia since the Toowoomba Second Range Crossing awarded in 2015. This achievement reinforces its presence and commitment in the country. In addition, the Western Roads Upgrade becomes the first project awarded since the creation of the Netflow joint venture between Cintra and Plenary to develop road projects in Australia and New Zealand. Ferrovial also have a presence in the country through Broadspectrum, in Services, and Ferrovial Agroman, in Construction.