Gold Coast light rail

The Gold Coast light rail project between Gold Coast University Hospital and Broadbeach was delivered and is now being operated, under a $1.2 billion, 18 year PPP contract.

A tender process was conducted to ensure value for money was achieved with respect to the award of the PPP contract. The State entered into the PPP contract on 5 May 2011 with GoldLinQ Pty Ltd (the Operator Franchisee) - a special purpose company established by the successful consortium.

The owners of the Operator Franchisee are Aveng Australia Holdings Pty Ltd, International Public Partnerships (Aust) Ltd, Keolis SA, Marubeni Corporation, and the Plenary Group.27

The PPP contract requires the Operator Franchise to finance, design and construct the light rail system and then to operate and maintain it through to the expiry of the PPP contract on 31 May 2029. In return, the State agreed to pay a capital contribution during the construction phase, and monthly service payments during the operation phase. The State was also responsible for providing access to site during the construction phases, and a lease of the project site during the operations phase.

The State takes ticket revenue risk, sets ticket prices, and retains the ticket revenue. Consistent with this, the State is responsible for the electronic ticketing system. The State entered into a separate agreement with the Translink Transit Authority in relation to ticketing and fare collection arrangements. The Operator Franchisee must take all necessary steps to minimise fare evasion.

The State also entered into a separate agreement with the Gold Coast City Council (GCCC), regulating the use of GCCC land, GCCC design review rights, works to be returned to GCCC, conditions to be imposed by GCCC on adjoining developments, and changes to traffic signalling priority

The Operator Franchisee subcontracted its obligation to design and construct the light rail system (including the light rail vehicles) to an unincorporated joint venture between Bombardier Transportation Australia Pty Ltd and McConnell Dowell Constructors (Aust) Pty Ltd (the D&C Contractor).

The Operator Franchisee subcontracted is obligation to operate and maintain the light rail system to KDR Gold Coast Pty Ltd (the Operator), a company owned by Keolis SA and Downer EDI Ltd. The Operator, in turn, subcontracted its obligation to maintain the light rail vehicles to Bombardier Transportation Australia Pty Ltd.

Figure 4: Project structure - Gold Coast light rail

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27 GoldLinQ web page, visited on 19 June 2017: http://www.goldlinq.com.au/board.html. It seems that Palisade has sold down its 16.7% interest.