2015 Annual Infrastructure Oration and National Infrastructure Awards
Infrastructure Partnerships Australia convened the Annual Infrastructure Oration and 2015 National Infrastructure Awards, at a gala dinner in Sydney.
The sector’s signature event drew together more than 600 of Australia’s senior political, public sector and business leaders to share the observations of the 2015 Orator, Transurban Chief Executive Scott Charlton; and to recognise the sectors achievements across the past year.
Figure 1: The 2015 Annual Infrastructure Oration and National Infrastructure Awards
Figure 2: [L-R] IPA Chief Executive Brendan Lyon, Transurban Chief Executive Scott Charlton, Dr Kerry Schott and IPA Chairman Adrian Kloeden
As with previous years, the National Infrastructure Awards were conferred by an Independent Judging Panel.
The 2015 Independent Judging Panel consisted of:
- Dr Kerry Schott (Panel Chair) – IPA Patron and Board Member, Member of Infrastructure Australia and Chairman of Moorebank Intermodal Company;
- Lyn O’Connell, IPA Board Member and Deputy Secretary, Federal Department of Infrastructure and Regional Development;
- Neil Scales, Secretary, Queensland Department of Transport and Main Roads;
- David Webster, IPA Board Member and Deputy Secretary, Victorian Treasury;
- Leilani Frew, Head of Infrastructure and Structured Finance, NSW Treasury; and
- Adrian Kloeden, IPA Chairman.
The National Infrastructure Awards saw Queensland’s Legacy Way project recognised as the best major project of the year.
The Judging Panel particularly noted that the flagship project brought together local and international expertise to deliver two record breaking tunnel excavations within an innovative design framework.
Figure 3: [L-R] IPA Chairman Adrian Kloeden, Ghella’s Isaac Smith, TransCity JV’s Stuart Wedlake, and Acciona’s Managing Director Fernando Fajardo receive the Project of the Year Award from Paul McClintock AO, Chairman of category sponsor NSW Ports.
The 2015 National Infrastructure Awards saw NSW Treasury’s head of private finance, Leilani Frew recognised with the Women’s Achievement in Infrastructure Award, for her leadership across the NSW Government’s infrastructure programme – including the North West Rail Link, NorthConnex and the CBD South East Light Rail.
IPA thanks our Oration Sponsor, The Bank of Tokyo-Mitsubishi UFJ and our Category Sponsors: NSW Ports; Hansen Yuncken; The Bank of Tokyo-Mitsubishi UFJ; Rider Levett Bucknall; NSW Department of Premier and Cabinet; Minter Ellison; the Federal Department of Infrastructure and Regional Development and Calibre.
Project of the Year – sponsored by NSW Ports
Winner: Legacy Way
Allens; Brisbane City Council; EY; National Australia Bank; Transcity Joint Venture consisting of Acciona Infrastructure; BMD Constructions; and Ghella
Legacy Way is Brisbane’s City Council’s flagship infrastructure project connecting the city’s western and inner northern suburbs.
In awarding Legacy Way as Project of the Year, the Judging Panel particularly noted the scale and complexity of the project, and commended the project team for delivery of two record breaking tunnel excavations within an innovative design framework.
The Transcity Joint Venture is the consortium responsible for the design, construction and operation of Legacy Way. The joint venture is between Brisbane-based BMD Constructions, Italian tunnelling company Ghella, and Spanish tunnelling and civil infrastructure company Acciona.
This global representation integrates expert industry knowledge, extensive experience, and local resources to achieve successes in design innovation and outstanding construction progress. Construction of Legacy Way commenced in 2011 and the link is on target to open in mid-2015.
The two tunnel excavations were completed in record time – the first 4.26 kilometre tunnel was completed in nine months and 10 days, the second 4.27 kilometre tunnel was completed in six months and nine days. The majority of surface work was completed offline, with reduced impacts on motorists using two of Brisbane’s busiest arterial roads. The proponents implemented a comprehensive community engagement programme to mitigate disruptions to 454 residential and commercial properties.
Former winners of the Project of the Year include the Regional Rail Link, the NSW budget reform process including the refinancing of the Sydney Desalination Plant, the New Royal Children’s Hospital, the Gateway Upgrade Project, Melbourne Channel Deepening Project and Defence Headquarters Joint Operations Command Project.
Gold Coast Light Rail – Stage One
Allens; City of Gold Coast; Corrs Chambers Westgarth; DLA Piper; GoldLinQ consortium consisting of Bombardier Transportation, Keolis Downer Pty Ltd, and McConnell Dowell; Plenary Group; Queensland Government
The Gold Coast Light Rail project has integrated new and existing transport systems, stimulated urban regeneration and is the catalyst for sustainable transit-oriented development.
The partnership between the GoldLinQ consortium and the Queensland Government resulted in the on-time delivery of Gold Coast Light Rail Stage One, a 13 kilometre, 16-station corridor connecting planned and existing high-density business, education, medical, residential, tourism and entertainment precincts. The light rail is operated and maintained by Keolis Downer, Australia’s Australia’s largest private multi-modal public transport operator. Since opening, the light rail has served on average 535,000 passengers a month, with patronage outstripping pre-construction forecasts.
MCJV – Australia Pacific LNG Project
Consolidated Contracting Company Australia; McConnell Dowell Constructors (Australia)
MCJV (a 50/50 Joint Venture consisting of McConnell Dowell Constructors and Consolidated Contracting Company Australia), was engaged by Origin Energy to construct the high pressure gas transmission pipeline for the Australia Pacific LNG project in Queensland.
The project involved the construction of approximately 720 kilometres of large diameter high pressure gas transmission pipelines, up to 1,066 millimetres (42 inches) in diameter, and the associated facilities.
The Australia Pacific LNG Project is one of the largest and most complex pipeline projects ever constructed in Australia. Early collaboration between MCJV partners and the client Origin Energy allowed for the leveraging of the contractors expertise to inform the design, and also to identify and unravel potential challenges before construction commenced. It also facilitated the best cultural framework and management approach on which to base the project.
The pipeline construction process was carefully chosen after extensive environmental and geotechnical studies of the terrain to minimise impact.
The project successfully minimised environmental impacts by working cooperatively with government and complying with stringent environmental regulations outlined in the 21 Environmental Management Plans, 20 permits and more than 600 conditions.
South West Rail Link
Transport for NSW (TfNSW); John Holland Group; Aurecon/AECOM Joint Venture
The South West Rail Link (SWRL) is a NSW Government initiative which responds to issues of reliability and passenger growth on the metropolitan rail network and population growth in south-west Sydney. It includes a major upgrade of Glenfield Station, a bus/rail interchange and a new twin track passenger rail line from Glenfield to Leppington via Edmondson Park.
Works have been completed 12 months ahead of schedule and $300 million under the $2.1 billion budget, and revenue services commenced in February 2015. The South West Rail Link provides essential infrastructure for predicted future increases in population in Sydney’s south-west, including the South-West Growth Centre. It will provide a link to major employment centres including Liverpool, Parramatta and the Sydney CBD. It delivers increased and more reliable train services, more commuter car parking spaces and modern, safe and accessible stations and interchange facilities.
IPA thanks NSW Ports for sponsoring the Project of the Year Award.
Women’s Achievement in Infrastructure Award – sponsored by Calibre
Winner: Leilani Frew, Head of Infrastructure and Structures Finance, NSW Treasury
The Women’s Achievement in Infrastructure Award was presented to Leilani Frew from NSW Treasury, recognising her deep experience across the public and private sectors in Australia, the UK, the US and Asia.
Ms Frew’s nomination was put forward by NSW Premier Mike Baird for her unique contribution to the procurement and delivery of major infrastructure projects in NSW.
Following an impressive 20 year career in public and private finance, Ms Frew has recently played a central role in a number of significant projects currently underway across NSW including the North West Rail Link, CBD and South East Light Rail and NorthConnex.
The Judging Panel noted that Ms Frew is highly respected by her colleagues for her ongoing positive contribution to the improvement of the infrastructure sector.
The Women’s Achievement in Infrastructure award acknowledges the substantial contribution and leadership of senior women in the sector. Although Ms Frew was a member of the Judging Panel, she was not involved in the assessment of this category.
IPA thanks Calibre for sponsoring the Women’s Achievement in Infrastructure Award.
SMART Infrastructure Project Award – sponsored by the Department of Infrastructure and Regional Development
Winner: Yarra Valley Water
The Smart Water Infrastructure Initiative will assist Yarra Valley Water (YVW) to improve $3 billion worth of water and sewerage infrastructure through sophisticated analytics and asset management software from IBM.
The project is expected to deliver a comprehensive view of all the utility’s assets, which are used to deliver water and sewerage services to over 1.7 million people and 50,000 businesses throughout Melbourne.
This includes approximately 19,000 kilometres of water and sewer pipes, 79 water pump stations, nine sewage treatment plants and two recycled water facilities.
The Judging Panel observed that Yarra Valley Water will be able to collect, combine and analyse data from across its asset portfolio, particularly when prioritising the renewal of ageing infrastructure. The new system will improve the existing asset lifecycle, ensuring downtime and maintenance costs are reduced, as well as minimising disruption in the provision of vital services.
Bauhinia Electrification Project
Laing O’Rourke, on behalf of Aurizon, was appointed to design, construct and commission a power supply system to distribute power to 110 kilometres of existing rail line, linking Glencore’s Rolleston Mine to the Kinrola Junction at Blackwater, Queensland.
The scope was to design, construct and commission a power supply and overhead wiring solution to service the current and future haulage commitments on the line using electric trains instead of diesel.
This included a 132 kilovolt feeder station connected to the existing Ergon transmission network via five kilometres of overhead transmission line, a 50 kilovolt feeder station, track sectioning yard and trackside auto transformers, 110 kilometres of rail overhead wiring, telecommunications infrastructure and more than 2,300 overhead wiring masts and foundations.
The power solution, which uses two static frequency convertors – an Australian first – provides a cleaner and more balanced energy solution, improving efficiency and reducing power consumption.
The Bauhinia Electrification Project exemplifies Laing O’Rourke’s ongoing commitment to innovation, and delivering projects quicker, safer and more sustainably. Laing O’Rourke engaged its Engineering Excellence Group (EnExG), as well as its Design for Manufacture and Assembly (DfMA) approach to drive cost efficiencies, reduce risk, and deliver a high quality project to demanding timeframe and budget constraints.
Sydney Trains Fleet Allocation Recording System
Sydney Trains’ Fleet Allocation and Recording System (FARS) is a world first, transforming paper-based practices to deliver near real-time information validation on current train movements and allocations – as well as streamlining train allocation planning up to 14 days in advance.
FARS was initially commissioned to ensure Sydney Trains’ new Waratah Fleet was dispatched to the Auburn maintenance facility on time for scheduled mandatory maintenance activities.
The FARS Project has automated Sydney Trains’ workflows to record train allocation information. It also provides maintenance alerts and real time information received from other planning, asset management, timetabling and train tracking systems.
FARS facilitates planning and fleet management through a simple user interface transforming logistical planning across Sydney Trains, delivering enhanced decision making and optimised operations. FARS software is developed and supplied by Quintiq, and provides innovative modelling, visualisation and propagation technologies that assist schedulers to adjust train allocation ensuring trains are presented at depots at the right time for inspections, irrespective of network issues.
IPA thanks the Federal Department of Infrastructure and Regional Development for sponsoring the Smart Infrastructure Award.
Operator and Service Provider Award – sponsored by Minter Ellison
Winner: Wandoo Reintegration Facility
Wandoo Reintegration Facility is a minimum security facility for 18-24 year old male offenders. It is located in Murdoch in the inner southern suburbs of Perth.
Operated by Serco Australia for the Western Australian Government, the facility is achieving significant results improving social outcomes and reducing costs to society through better reintegration through a combination of redesigned physical infrastructure with unique service delivery.
The Judging Panel observed the recent Western Australian Inspector of Custodial Services report which found “many strengths and achievements in the performance of the Wandoo Reintegration Facility after its first 18 months of operation”.
The report outlined a number of areas of achievement for the facility, including the development of intervention pathways as the basis for its thorough care and reintegration planning which seeks to address social exclusion factors relevant to young Western Australian prisoners. This includes residents at Wandoo making positive contributions to the community by way of reparative work, notably at the local foodbank warehouse and in facilities maintenance.
Gold Coast Light Rail – Stage One
The Gold Coast Light Rail project has integrated new and existing transport systems, stimulated urban regeneration and is the catalyst for sustainable transit-oriented development.
The partnership between the GoldLinQ consortium and the Queensland Government resulted in the on-time delivery of Gold Coast Light Rail Stage One, a 13 kilometre, 16-station corridor connecting planned and existing high-density business, education, medical, residential, tourism and entertainment precincts. The light rail is operated and maintained by Keolis Downer, Australia’s largest light rail operator. Since opening, the light rail has served on average 535,000 passengers a month, with patronage outstripping pre-construction forecasts.
RMS Stewardship Maintenance Contracts
Roads and Maritime Services
Roads and Maritime Services (RMS) developed a new maintenance delivery model, engaging five large joint ventures to deliver road, bridge and transport system maintenance across Sydney.
By adopting Stewardship Maintenance Contracts (SMCs), RMS was able to provide better value for money, allowing more work for the same investment and driving improvements in technology, planning and asset management.
The SMC model stipulates strong expectations around service provider interaction with the community, encouraging a strong focus on public interest when planning and implementing road maintenance. This approach is already resulting in improved operational efficiencies and better outcomes for customers being delivered on major Sydney roads including General Holmes Drive, Heathcote Road, Mona Vale Road and the Captain Cook Bridge.
A notable innovation is the establishment of 24 hour operations centres in each zone, a single point of contact for customers linked to the Transport Management Centre and enabling seamless integration to improve incident handling on the network.
IPA thanks Minter Ellison for sponsoring the Operator and Service Provider Excellence Award.
Government Partnership Excellence Award – sponsored by NSW Government
Winner: North West Rail Link Operations, Trains and Systems PPP
Northwest Rapid Transit comprised of John Holland, Leighton Contractors, MTR Corporation (Australia), Plenary Group, UGL Rail Services; and Transport for NSW
The $8.3 billion North West Rail Link (NWRL) is Australia’s biggest public transport infrastructure project, broken up into three contracts. It includes eight new railway stations and 4,000 commuter car parking spaces. When services begin in the first half of 2019, customers will have access to a train every four minutes in the peak.
Over the coming decades, an extra 200,000 people will move into the North West Growth Centre, taking its population above 600,000. The NWRL will service major population and economic growth centres including the Macquarie Park region in Sydney’s booming Global Economic Corridor as well as the Norwest Business Park.
As the first stage of Sydney Rapid Transit, the city’s new rapid transit railway network, the project includes the first driverless train system in Australia. The $3.7 billion Operations, Trains and Systems (OTS) PPP contract being delivered by the Northwest Rapid Transit consortium (comprised of MTR Corporation, John Holland, UGL Rail Services, Leighton Contractors and Plenary Group) is the largest of three major contracts entered into by Transport for NSW to deliver the NWRL.
The Judging Panel particularly noted the scale and engineering complexity of the North West Rail Link Operations Trains and Systems PPP, commending both the public procurers and private sector proponents for innovations including the introduction of driverless trains and an independent operator, driving service reform through the capital programme.
The Transport for NSW team and the tenderers met all promised milestones for the project and contractual close was achieved less than 12 weeks after the nomination of preferred proponent. The OTS PPP – one of Australia’s most complex PPPs – was one of only two projects to achieve both contractual and financial close within the same week in 2014.
NSW Government and Transurban
The NSW and Federal Governments, Transurban and the M7 Westlink Shareholders (the Project Sponsors) have signed a contract to build, operate and maintain a tolled motorway linking the M1 Pacific Motorway at Wahroonga to the Hills M2 Motorway at West Pennant Hills, known as NorthConnex. It will provide twin motorway tunnels around nine kilometres in length and initially operate with two lanes in each direction (with long term capacity for three lanes).
NorthConnex will deliver significant benefits to local communities by easing congestion on Pennant Hills Road, putting more than 5000 trucks a day underground and returning local streets to local communities. It will boost the State and national economies by providing more reliable journeys and shorter travel times for the movement of freight.
A connection between the M1 and M2 was key recommendation of the NSW Government’s Long Term Transport Master Plan. The project was developed under the NSW unsolicited proposal guidelines, which allowed for the project’s acceleration in the pipeline. The process run by the State and the proponent allowed for the acceleration of the procurement process and planning approval, and has created a new way to develop infrastructure. The result is that this project – which was a long-term aspiration in the Transport Master Plan, is now a short term reality.
IPA thanks the NSW Department of Premier and Cabinet for sponsoring the Government Partnership Excellence Award.
Financial Excellence Award – sponsored by Rider Levett Bucknall
Winner – NorthConnex
Transurban; Deloitte (Tax adviser to the Sponsors); KPMG (Financial adviser to the State)
The NSW Government, Transurban and the M7 Westlink Shareholders are planning to build, operate and maintain a tolled motorway, called NorthConnex, linking the M1 Pacific Motorway at Wahroonga with the Hills M2 Motorway at West Pennant Hills. The proposed nine kilometre tunnel motorway includes interchanges to the north and south to accommodate connections at either end of the motorway with the existing road network. When complete, it will link Sydney’s north to the orbital network and form part of the National Highway route. As part of the wider Sydney road network, NorthConnex provides a direct connection from the north to western and southern roads.
The $2.9 billion project will be funded through a diverse range of funding sources, including repricing and concession extension on existing assets, toll charges and with a contribution from the NSW and Federal governments of up to $400 million each.
The Judging Panel recognised that the financial advisers developed and implemented an innovative accelerated procurement process to meet the specific unsolicited bid requirements of the NSW Government.
The approach provided early certainty of affordability, deliverability of the project in a shortened timeframe and increased exposure of the project to higher levels of innovation by the market resulting in an optimal result at a competitive price.
Highly Commended – Transmission Gully PPP, New Zealand
Bank of Tokyo-Mitsubishi UFJ (Financial adviser to the consortium); PwC (Financial advisor to the State)
Although not an Australian project, the Judging Panel felt that the Transmission Gully PPP deserved recognition as an example of financial excellence because the advisers have put in place a structure to incentivise continual investment in safety measures, and created a PPP performance regime that materially changed established procurement models towards an outcome based contract.
Transmission Gully will be a 27 kilometre divided highway, bypassing existing traffic bottlenecks along the SH1 coastal route, providing a quicker, safer and more reliable route between the Kapiti Coast and Wellington.
The successful consortium, comprised of Leighton Contractors, HEB Construction, BTMU, Accident Compensation Corporation and InfraRed Capital Partners, developed a solution which met the objectives of the NZ Transport Agency.
The engineering is highly complex, with difficult and steep terrain requiring large scale earthworks in a seismically active region.
The project required over NZ $1 billion of private sector capital, provided by three investors and seven banks, arranged by BTMU.
It continues the development of the uniquely New Zealand influence in the Australasian Public Private Partnership market, led by the National Infrastructure Unit in NZ Treasury.
The financial advisers arranged the largest PPP financing in New Zealand history, and in particular negotiated innovative risk allocation positions which included taking financial risk on safety outcomes and travel time objectives, implementing a full self-insurance risk, as well as dealing with seismic risk.
The arrangements put in place by the financial advisers include considerable financial penalties in the event that a safety issue is identified. This is intended to incentivise continual investment in safety measures. Under the PPP contract’s “performance regime”, the NZ Transport Agency’s quarterly payments to the winning consortium are linked to the performance criteria, which includes reducing vehicle travel time and improving travel time reliability.
Macquarie Capital Group and UBS (Joint financial adviser to the vendor)
On 23 April 2014, Queensland Investment Corporation (QIC) announced that it had reached a binding agreement with a consortium comprising Transurban, AustralianSuper and Tawreed Investments Limited for the sale of 100 per cent of Queensland Motorways. Queensland Motorways was managed by QIC on behalf of the State’s Defined Benefits Fund.
The enterprise value for the transaction was $7.057 billion, representing the largest transport infrastructure merger & acquisition (M&A) transaction ever in Australia. Financial close occurred on 2 July 2014.
Macquarie Capital and UBS acted as joint financial advisers to QIC. The innovative approach they developed generated significant benefits for the client and attracted demand from global operators, institutional investors and sovereign wealth funds. A rigorous and front-ended due diligence process was run by the financial advisers, which resulted in four fully financed bids being lined up for the deal.
The new Perth Stadium
John Laing (Equity funder and project sponsor) and Brookfield Financials (Financial adviser)
The circa $1 billion new Perth Stadium Public Private Partnership Project will deliver a 60,000 seat multi-purpose venue capable of hosting sport and entertainment events from early 2018.
The Stadium will be the first ever PPP delivered stadium in Western Australia. The Project will be the largest PPP delivered by value in Western Australia.
The financial advisers delivered the first ever PPP in Western Australia that utilised a state capital contribution, with 60 per cent of the construction cost being provided by the State, implementing a value enhancing short term swap structure for the first time on a Western Australian PPP, alongside traditional PPP senior debt.
IPA thanks Rider Levett Bucknall for sponsoring the Financial Excellence Award.
Contractor Excellence Award – sponsored by The Bank of Tokyo Mitsubishi UFJ. Ltd
Winner – MCJV – Australia Pacific LNG Project
McConnell Dowell Constructors (Aust) Pty Ltd; Consolidated Contracting Company Australia Pty Ltd
MCJV (a 50/50 Joint Venture consisting of McConnell Dowell Constructors and Consolidated Contracting Company Australia) was engaged by Origin Energy to construct the high pressure gas transmission pipeline for the Australia Pacific LNG project in Queensland.
The project involved the construction of approximately 720 kilometres of large diameter high pressure gas transmission pipelines, up to 1,066 millimetres (42 inch) in diameter, and the associated facilities.
The Australia Pacific LNG EPC Pipelines project was executed while in direct competition for resources with other CSG projects in the Queensland construction market. The Judging Panel especially recognised that the joint venture overcame logistics, environmental, terrain, weather and resource constraints in completing this project.
The contractors implemented best practice project management through the alignment of the contract approach with a collaborative cultural framework. The project team diligently measured and managed team performance against key KPIs of safety, environment, quality and progress. Targets in these areas were met or exceeded with industry leading performance.
M5 West Widening Project
The $400 million M5 West Widening project was a partnership between Interlink Roads and the NSW Government, with Lend Lease contracted for the design and construction.
The M5 West Widening project was completed both on time and budget in December 2014 without material traffic disruption. The project has significantly enhanced the Sydney road network by increasing the road’s capacity by 50 per cent and reducing congestion on one of Sydney’s key transport corridors.
The project involved extensive retrofitting of new to existing infrastructure. This key risk was managed by the project partners through the adoption of the Early Contractor Involvement (ECI) model.
The contractors operated in a live traffic environment, with the two year works programme managed to always keep two lanes of traffic open during peak hours. The contractors employed 3,800 people and achieved an excellent safety record with only one Lost Time Injury in the 1.7 million man hours worked.
South West Rail Link
John Holland Group
The South West Rail Link (SWRL) is a NSW Government initiative which responds to issues of reliability and passenger growth on the metropolitan rail network, and broader population growth in south-west Sydney. It includes a major upgrade of Glenfield Station, a bus/rail interchange and a new twin track passenger rail line from Glenfield to Leppington via Edmondson Park.
The South West Rail Link provides essential infrastructure for predicted future increases in population in Sydney’s south-west, including the South West Growth Centre. It will provide a link to major employment centres including Liverpool, Parramatta and the Sydney CBD. It delivers more reliable train services, provides increased commuter car parking spaces and modern, safe and accessible stations and interchange facilities.
The contractors completed works 12 months ahead of schedule and $300 million under the $2.1 billion budget. Revenue services commenced in February 2015.
IPA thanks the Bank of Tokyo Mitsubishi UFJ for sponsoring the Contractor Excellence Award.
Advisory Excellence Award – sponsored by Hansen Yuncken
Joint winners – Northern Beaches Hospital PPP and Ravenhall Prison Project
Northern Beaches Hospital PPP
PwC (Financial adviser to the State); Herbert Smith Freehills (Legal adviser to the State) ; Minter Ellison (Legal adviser to the State) ; Gilbert + Tobin (Legal adviser to Healthscope); Macquarie Capital Group (Financial adviser and debt arranger); King Wood & Mallesons (Legal adviser to the Lenders); HWL Ebsworth (Legal advisers to Thiess)
The $1 billion Norther Beaches Hospital project includes the first hospital to be built on a greenfield site in Sydney for more than 20 years. The NSW Government has entered into an innovative partnership with healthcare provider Healthscope to design, build, finance, operate and maintain Northern Beaches Hospital, setting a new standard in health service procurement. The 6.5 hectare site will provide 488 hospital beds and a 50-space emergency department and extensive health services in a single, integrated facility for both public and private patients.
For the first time, residents won’t have to leave the Northern Beaches to receive the majority of their complex healthcare needs.
The Judging Panel particularly noted that the advisers to the State and the consortium contracted the most innovative health sector PPP in the history of New South Wales, with full clinical services outsourced to an experienced healthcare provider. The procurement structure will allow the hospital to be built faster, more efficiently and with significant savings for the taxpayer.
Ravenhall Prison Project
Allens (Legal adviser to the GEO consortium); EY (Financial adviser to the State); Capella Capital (Financial adviser to consortium); Herbert Smith Freehills (Legal adviser to the O&M contractor); Clayton Utz (Legal Adviser to the State)
The Ravenhall Prison project is a new 1,300 bed facility in Melbourne’s western suburbs. It has been procured as a ‘full service’ Public Private Partnership through the Partnerships Victoria framework. The new prison will enhance community safety by securely containing prisoners and delivering programmes and services to reduce reoffending, and provides capacity to meet future needs using an efficient operating model.
The project will be developed by a consortium comprising The GEO Group Australia, John Holland, Honeywell and Capella Capital. Debt financing was provided by a bank group comprising Commonwealth Bank of Australia, National Australia Bank, Westpac and DZ Bank. All equity will be provided by The GEO Group.
In particular, the Judging Panel recognised that the advisers facilitated the introduction of a payment-by-results model – an Australian first – where the consortium is rewarded through incentive payments on the basis of a measure of reoffending amongst prisoners released from the prison. This incentive structure will facilitate GEO Consortium to design and deliver innovative programmes to reduce recidivism; and ultimately improve community safety, improve future prospects for offenders and reduce the burden on the Victorian judicial system. According to recent figures from the Australian Bureau of Statistics, more than 50 per cent of Victoria’s prisoners are repeat offenders.
New Generation Rolling Stock (Queensland)
PwC (Financial adviser to the State); Ashurst (Legal adviser to the State); Allens (Legal adviser to the consortium); Macquarie Capital Group (Financial adviser to the consortium); Herbert Smith Freehills(Legal adviser to the lenders)
The $4.4 billion New Generation Rolling Stock Public Private Partnership included the purchase of 75 new six-car electric trains; ongoing maintenance of the trains for 30 years; and construction of a modern, purpose-built maintenance centre at Wulkuraka at Ipswich. The new trains will increase the rail fleet by 30 per cent, and maximise capacity of the existing network.
The trains will be required to meet pre-determined availability and reliability measures, including on time running.
This project was the largest passenger transport project ever procured in Queensland and the largest ever single investment made in trains in the State. The advisers contracted a highly complex project, within a tight procurement timeframe, and providing the preservation of flexibility for broader rail sector reform. The advisers also successfully managed a change in procurement model from a Design-Build-Maintain contract to a PPP availability model.
IPA thanks Hansen Yuncken for sponsoring the Advisory Excellence Award.