HILLS MOTORWAY (M2 MOTORWAY)

Sydney, New South Wales, Australia

The $650 million M2 Hills Motorway opened six months ahead of schedule in May 1997 after a three-year design and construction period. Exhibit 4.15 shows the Epping Ramps and Tunnel on the completed M2 Motorway.

Exhibit 4.15 Epping Ramps and Tunnel on M2 Motorway

Source: Maunsell of Australia, 2006

The Abigroup-Obayashi Joint Venture was the construction contractor, on behalf of Hills Motorway Limited. Hills Motorway entered into a formal agreement with the NSW Government to build, own, operate and, ultimately, transfer the M2 back to the Government at the end of a 45-year term.

The construction cost will be paid off through toll revenue over the term of the concession and all operating costs will be met by Hills Motorway over this period. Hills Motorway Limited has overall control and ownership of the Motorway and was a public company listed on the Australian Stock Exchange up to May 2005.

The Motorway is operated by Tollaust Pty Limited, a company that is jointly owned by Abigroup and EGIS, under an operating and maintenance contract with Hills Motorway Limited. Tollaust is responsible for collecting the tolls and operating and maintaining the M2 Motorway as well as the electronic tolling systems. The Macquarie Infrastructure Group helped fund the project. The concession ends in 2042.

Issues/Results: The M2 is performing satisfactorily in terms of traffic volumes and revenue as Hills Motorway Limited. Transurban, the owner-operator of Melbourne's CityLink, have recently acquired a controlling interest in the motorway. The M2 Motorway is a strategic asset for Transurban, which feeds traffic into the Westlink M7 Motorway opened in April 2006.