Nexus Infrastructure consortium has achieved financial closure for the Toowoomba's Second Range Crossing (TSRC) PPP project in South-East Queensland, Australia.
Nexus' members consist of Plenary Group (financial advisor and investor), Cintra (investor), Acciona Concessions (investor), Acciona Infrastructure and Ferrovial Agroman (construction joint venture), and Transfield Services (operations and maintenance provider).
The total project investment is estimated at A$1.6 billion (US$1.17 billion). The federal government has committed A$1.285 billion for the project alongside a A$321.25 million commitment from the state government.
The project is the largest Commonwealth Government commitment to a single regional road project in Queensland history.
Plenary Group Managing Director, Paul Oppenheim stated:
"Achieving financial close just 3 working days after contractual close demonstrates the public and private sector's commitment to the project commencing on time."
The 41 km highway will bypass the city of Toowoomba, and improve traffic conditions and road safety in the region, in particular reducing the number of heavy vehicles travelling through the Toowoomba city centre. The new road will run from the Warrego Highway at Helidon in the east to the Gore Highway at Athol in the west via Charlton.
The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis for a period of 25 years. The contract will be structured as an availability-based public private partnership. Using this model, the State will provide upfront government funding contributions during the construction stage of the project and ongoing service payments over the concession period.
Work on the project will commence with detailed design, procurement and site establishment in the coming months with construction works expected soon after. Construction is expected to be completed in late 2018.
Toowoomba city is located 127 km west of Brisbane. The city plays a role in Queensland's transport network by acting as a hub for the Darling Downs and a gateway to the developing energy sector in the Surat Basin. The new road is expected to improve traffic conditions in the region by reducing the heavy goods vehicle traffic that currently crosses the city center.