Sydney light rail

The new CBD and South East Light Rail (CSELR) from Circular Quay along George Street to Central Station to Moore Park, then to Kingsford via Anzac Parade and Randwick via Alison Road and High Street is being delivered by two major contracts:

• a limited 'early works' package, that is being delivered by Laing O'Rourke Australia Construction Pty Ltd under a 'managing contractor' contract; and

• a main works package, that is being delivered as a PPP contract.

The Main Works PPP will cover design, construction, services relocations, operation and maintenance of the 12-kilometre project, as well as the operation and maintenance of the Inner West Light Rail network, from Central to Dulwich Hill.

A tender process was conducted to ensure value for money was achieved with respect to the award of the PPP contract. TfNSW entered into the PPP contract on 17 December 2014 with the ALTRAC Light Rail Partnership (ALTRAC) - a special purpose partnership established by the successful bidder.

The owners of ALTRAC are First State Superannuation Scheme (62.5 per cent), John Laing PLC (32.5 per cent) and Accoina SA (5 per cent).30

The PPP contract 31 requires ALTRAC to finance, design and construct the CLELR and then to operate and maintain it together with the existing Inner West light rail system through to the expiry of the PPP contract on 16 March 2034. In return, TfNSW has agreed to pay:

• a monthly O&M payment for the operation and maintenance of the existing Inner West light rail system (during the IWLR operations phase);

• monthly service payments during the full operations phase upon completion of the CSELR;

• a 'conditional debt pay down amount' between year two and year four of the operations phase, provided certain conditions are met; and

• bonus payments for early completion, if applicable.

The estimated net present value of the service payments over 19.1 years is $2.204 billion.32

TfNSW is also responsible for obtaining the planning approval required for the project and providing access to project site.

ALTRAC has subcontracted its obligation to design and construct the light rail system (including the light rail vehicles) to an unincorporated joint venture between Alstom Transport Australia Pty Limited and Acciona Infrastructure Australia Pty Ltd (the D&C Contractor).

ALTRAC has subcontracted is obligation to operate and maintain the light rail system to Transdev Australia Pty Ltd (the Operator).

Figure 5: Project structure - Sydney CBD and South East light rail

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30 Sydney Light Rail Project deed, Schedule A7.

31 A copy of the Sydney Light Rail Project Deed is available at: https://www.transport.nsw.gov.au/industry/contracts-awarded/transport-projects

32 Sydney Light Rail Public Private Partnership Contract Summary, p18. Available at: https://www.treasury.nsw.gov.au/sites/default/files/2017-02/Sydney_Light_Rail_PPP.pdf