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Canberra Metro PC Pty Ltd, a joint stock company established by Mitsubishi Corporation, Pacific Partnerships, John Holland and Aberdeen Infrastructure Investments, has raised financing to carry out the A$707 million (US$508 million) Light Rail Transit (LRT) operations in Canberra under a PPP scheme.
In mid May Canberra Metro consortium and the Australian Capital Territory Government signed an agreement for the project. Previously, in February the team, composed of Pacific Partnerships, Mitsubishi Corporation, Aberdeen Infrastructure Investments Limited, John Holland, DB International, Leighton Contractors, Construcciones y Auxiliar de Ferrocarriles (CAF) and Bank of Tokyo-Mitsubishi, was selected as the preferred bidder.
Pacific Partnerships will provide operations and maintenance services for 20 years, in partnership with John Holland and DB Engineering & Consulting. CPB Contractors will deliver the design and construction in a joint venture with John Holland. CAF will supply and maintain the light rail vehicles. Mitsubishi UFJ Financial Group Ltd. is the financial advisor.
The first stage of the Capital Metro project includes design and construction of a 12 km light rail route from the fast growing area of Gungahlin to the City, with 13 stops, depot, road, signaling and preparatory works and the ongoing operation and maintenance of the light rail system.
According to sources, the Deputy Chief Minister of the Australian Capital Territory, Simon Corbell said:
“Canberra Metro will work closely with the ACT government in the lead-up to the start of construction activities in the coming weeks, with services scheduled to commence in early 2019, almost a year earlier than originally expected,” Corbell said.
“With financial close now having been achieved, I can confirm that the capital delivery cost of the project is $707 million. A territory contribution will be made at the beginning of operations, along with annual availability payments.”
Availability payments will be approximately A$47m in the first 12 months of operations and approximately A$75m for the last 12 months of the contract term in 2038. The average annual availability payment will be approximately A$64m.
“The benefits of an integrated public transport system for our community are substantial. It will support social inclusion, drive economic development, maintain liveability and help to reduce congestion.
“Transport Canberra will ensure that buses and light rail are integrated along with other forms of transport including cycling and walking. It will also encourage innovative approaches to driving, parking and traffic management.”