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Nexus Infrastructure consortium has achieved contractual close with the Queensland Government for the Toowoomba's Second Range Crossing (TSRC) PPP project in South-East Queensland, Australia.
Nexus' members consist of:
Nexus will design, construct, finance and operate and maintain the a 41-kilometre new section of toll road, bypassing the city of Toowoomba. 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 is the largest Commonwealth Government commitment to a single regional road project in Queensland history.
Plenary Group Managing Director, Paul Oppenheim, said more than 2,000 people and local businesses have already registered their interest on the project's dedicated website. Mr Oppenheim stated:
"Equally, we look forward to working closely with our partners at the Queensland Government to commence detailed design and to establish on site in the coming months."
Establishment works will commence in coming months and construction works expected to start soon after. Construction is expected to be completed in late 2018, after which Nexus is contracted to operate and maintain the road for 25 years. The State of Queensland will pay availability payments throughout the concession term.
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. Queensland Treasurer has also allocated A$321.25 million to the project in its 2014-15 budget.
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.
We have recently reported on several road PPP projects globally: