Registrations of Interest sought for multi-billion dollar road PPP in Australia

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Registrations of Interest sought for multi-billion dollar road PPP in Australia

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The North East Link Authority (NELA) has announced that it is inviting registrations of interest (ROI) from the market for the primary package for the North East Link, a proposed new freeway in north-east Melbourne, the state capital of Victoria, south-east Australia. The business case estimates the project to cost around AUD16 billion (US$11.4 billion).

The primary package is to be procured as an availability PPP. The design and construction scope covers a new 7km freeway between Watsonia and Bulleen Road; twin three-lane tunnels, approximately 6km in length passing under Banyule Flats and the Yarra River; and two new interchanges at Manningham Road and Lower Plenty Road.

The selected private partner will also deliver the ventilation, fire, life and safety and traffic management systems within the tunnels; an intelligent transport system across the entire project corridor; an operations and maintenance control system, motorway control building and backup facilities; toll gantries and tolling road side equipment; noise walls, shared use paths, landscaping and urban design.

The primary package will also include the operation and maintenance of works delivered through subsequent secondary packages, which are to be tendered following the award of the primary package.

The ROI document notes that the ultimate size (in financial terms) of the PPP is potentially greater than any previous project delivered under a PPP framework in Australia, although does not disclose the projected capital cost.

The document invites market participants interested in participating in the tender process for the primary package as a project sponsor/consortium leaddesign-build contractor or financier to register their interest. Those that do so will be invited to engage in interactive sessions to further refine and develop the procurement framework for the package.

There is no submission deadline for the ROIs. Instead, interested parties are strongly encouraged to submit ROIs as soon as possible, as engagement is already ongoing. Furthermore, an industry briefing for the project held last month attracted around 150 attendants, indicating a high level of interest in the market.

NELA has not disclosed a timetable for the procurement of the primary package. However, subject to planning approvals, construction of the North East Link is scheduled to start in 2020, giving some indication of the timeframe.

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