The PPP arrangement for the Sydney Harbor Tunnel included the Government of New South Wales as project sponsor. The NSW Government selected the Sydney Harbor Tunnel Company Pty. Ltd. as the preferred consortium in 1987. The consortium included the Australian conglomerate Transfield together with the Japanese tunnel construction company Kumagai Gumi, each with a 50 percent stake in the Joint Venture.
The thirty-five year contract with the Sydney Harbor Tunnel Company provided for a five-year construction period and a thirty-year operating period. Hence the Joint Venture will operate the Tunnel until 2022 when it will be handed over as an asset to the New South Wales Government.
The following summarizes the major financing responsibilities of the public and private sector partners to the BOOT for this A749 million project:
• Public Sector - provided A$223million (approximately 30 percent of the contract value) through an interest-free loan by the NSW Government repayable in 2022.
• Private Sector Debt - financed A$506million (approximately 65 percent of the contract value) through an issue of 30-year, inflation-indexed bonds, underwritten by Westpac Bank.
• Private Sector Equity - The remaining A$20million (five percent of the contract value) was provided by the joint venture partners through a loan, with full repayment made upon the completion of works. The financial plan is summarized below:
Tolls are charged on both the Sydney Harbor Tunnel and Sydney Harbor Bridge in the southbound direction (city-bound) to assist in meeting financial obligations resulting from these financing arrangements.