MegaProject 312: Leighton-led consortium reaches CC for North West Rail Link PPP
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Transport for New South Wales and the Northwest Rapid Transit Consortium (NRT) have signed the A$3.7 billion Operations, Trains and Systems (OTS) package, which was procured via the PPP model.
The NRT consortium will provide rolling stock, design, build, finance, and then operate the North West Rail Link (NWRL) 36km rapid transit train service for a 15 year period. Under the PPP arrangement a four-way joint venture between MTR Corporation, John Holland, Leighton Contractors and UGL Rail Services will deliver the five year construction phase.
The project will serve a route between Rouse Hill and Chatswood, delivering world class public transport to the fast growing region of North West Sydney. The contract includes:
- building the eight new railway stations,
- delivering the commuter car parks for 4,000 cars,
- supplying the new generation rapid transit single deck trains,
- building and operating the stabling and maintenance facility at Tallawong Road,
- installing tracks, signalling, mechanical and electrical systems,
- converting the Epping to Chatswood Rail Link for the new rapid transit system,
- operating the North West Rail Link - including all maintenance work.
The NWRL involves three main contracts: Tunnels and Station Civils (TSC) package (procured via D&C contract), Surface and Viaduct Civils (SVC) package (procured via D&C contract), and Operations, Trains and Systems (OTS) Package (procured via a PPP contract). The total investment for the project is estimated at AU$8.3 billion.
The OTS PPP is the second NWRL contract win for the Leighton Group. In June 2013, Thiess and John Holland in joint venture with Dragados, were selected to deliver part of the NWRL's tunnels and civil works under a $1.15 billion contract. The tunnelling contract commenced in June 2013 and is scheduled for completion in 2017.Leighton Holdings Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes stated:
The Federal Government's objective is to catalyse $125 billion in new infrastructure spending by the end of the decade, and a large part of this is expected to be delivered through PPPs which presents a significant opportunity for Leighton. By bundling together the funding, construction and management of new projects we will be able to leverage greater results for our clients and shareholders. North West Rail Link is an example of this.