Canberra light rail
| The 12 kilometre light rail project between Gungahlin and the city centre of Canberra is being designed and constructed under a PPP contract.25 The PPP contract also provides for the operation and maintenance of the light rail system over a 20-year period. A tender process was conducted to ensure value for money was achieved with respect to the award of the PPP contract. |
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The Australian Capital Territory (ACT) entered into the PPP contract on 17 May 2016 with Canberra Metro PC Pty Ltd in its personal capacity and as trustee for the [Capital] Metro Trust (Canberra Metro) - a special purpose vehicle established by the successful consortium.
The owners of Canberra Metro are John Holland Pty Ltd, Pacific Partnerships, Mitsubishi Corporation and Aberdeen Infrastructure investment.
The PPP contract requires Canberra Metro to finance, design and construct the light rail system, and then operate and maintain it for a 20-year period.
In return, the ACT has agreed to pay a capital contribution of $375 million upon completion of construction, and monthly availability payments during the operations phase. The net present cost of the forecast availability payment is $520 million. The ACT must also obtain necessary development and works approvals for the works, and provide Canberra Metro with access to the project site.
Figure 3: Project structure - Canberra light rail
Canberra Metro has subcontracted its obligation to design and construct the light rail system (including the vehicles) to an unincorporated joint venture between unincorporated joint venture between John Holland Pty Ltd and CPB Constructions Pty Ltd (together, the D&C Joint Venture). The fixed price payable to the D&C contractor is $508 million.
The D&C Joint Venture has, in turn, subcontracted the design and manufacture of the light rail vehicles to Construcciones y Auxiliar de Ferrcarriles S.A. (CAF).
Canberra Metro has subcontracted its obligation to operate and maintain the light rail system to Canberra Metro Operations Pty Ltd (the Operator), a joint venture company owned by John Holland Pty Ltd and Pacific Partnerships Pty Ltd.
The Operator has, in turn, engaged Deutsche Bahn Engineering and Consulting to assist it with the operation and maintenance of the light rail system.
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25 A copy of the PPP contract is available at: https://tenders.act.gov.au/ets/contract/view.do?id=42390&returnUrl=%252Fcontract%252Flist.do%253F%2524%257Brequest.queryStri ng%257D