Leighton Contractors Pty Limited, as part of the Wellington Gateway Partnership (WGP), today reached financial close on an availability based Public Private Partnership (PPP) with the New Zealand Transport Agency (NZTA) for delivery of the NZ$1 billion Transmission Gully Motorway.
WGP will finance, design and construct the project, and then operate and maintain the 27km Transmission Gully Motorway from 2020 for a period of 25 years. The contract value to Leighton Contractors is approximately $800 million.
The project is New Zealand’s first state highway to be delivered as a PPP. Financial close follows WGP’s selection as the preferred bidder in December 2013.
Leighton Holdings Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said: “This award evidences the strong pipeline of work we are seeing, as governments continue spending on infrastructure, underpinning an increase in PPPs.
“The Leighton Group is committed to assisting governments with solutions for expanding modern sustainable transportation infrastructure and we will seek to take on roles as an equity participant, contractor and asset manager.
“The Transmission Gully PPP project harnesses the resources and expertise of both the New Zealand government and the private sector to efficiently deliver this essential infrastructure.”
WGP includes Leighton Contractors, HEB Construction Ltd, InfraRed Capital Partners, Bank of Tokyo-Mitsubishi UFJ (BTMU) and the Accident Compensation Corporation (ACC).
• is the special purpose vehicle manager for WGP
• has a majority role in the design and construct subcontract with JV partner HEB Construction, and
• will perform 100% of the operations and maintenance subcontract.
Equity investors in the project are the Leighton Group, contributing 15%, InfraRed and ACC. BTMU is financial advisor with funding provided by local and international banks.
Leighton Contractors Managing Director David Jurd said: “The Transmission Gully Motorway will be an enduring asset that enhances Wellington’s transport system and generates significant benefits for the community and New Zealand’s economy.
“For Leighton Contractors, this is the culmination of 10 years of delivering important infrastructure for New Zealand.”
In recent months WGP has consulted with the Greater Wellington Regional Council, territorial authorities and local Māori, and continues to finalise relevant approvals and consents. At its peak the construction phase will employ approximately 700 people.
Leighton Contractors has a strong presence in New Zealand and has previously worked with NZTA to successfully deliver major projects including the SH20-1 Manukau Extension (2010), the Newmarket Viaduct Replacement (2012) and the current SH16 Causeway Upgrade which is scheduled for completion in 2017.