Vytel Secures $820 million Nextgen Project

Issue Date:  20 December 2000
Issued By:  Vytel Pty Limited

Vytel Pty Limited, formed earlier this year as an operating division of Leighton Contractors Pty Limited, announced today that an $820 million project finance package for Nextgen Networks, Australia’s largest privately owned optic fibre network, has been finalised.

A project finance facility for $820 million has been underwritten by Deutsche Bank, West LB and National Australia Bank with the majority of equity underwritten by Macquarie Bank.

“We are excited by the potential of this unique infrastructure opportunity and have committed to a 20% equity stake in the project worth $90 million,“ said Phil Cooper, Managing Director, Vytel Pty Limited.

“Like Reef Networks, Nextgen demonstrates our ability to initiate and deliver complex telecommunications infrastructure projects from development and investment, design and construction to operation and maintenance services.

“We will immediately commence design and access finalisation, and from early next year construction forces will be deployed across the 8,400 kilometre network, ” said Phil Cooper.

Rollout of the network will be undertaken by Vytel subsidiary, Visionstream Pty Ltd. Network construction is valued at $612 million.

Throughout the development of the network, which extends from Brisbane to Perth via Sydney, Canberra, Melbourne and Adelaide, Visionstream will be working closely with state and local governments and community groups to manage environmental and access issues.

Operation and maintenance of the network will also be the responsibility of Visionstream following completion of construction in 2003. This contract will cover the initial ten year operating period and is worth approximately $50 million per year.

Earlier this year, Reef Networks Pty Limited commenced development of the $80 million Reef Networks project, Australia’s first privately owned network which is now nearing completion. Stretching from Brisbane to Cairns, this 1700 km fibre optic cable network has been leased to Cable and Wireless Optus for an initial ten year period. Vytel retains a 30% interest in the Reef project.

“Vytel is focused on anticipating and meeting the changing demands of the telecommunications sector. Our future, both in Australia and Asia, through Vytel Asia is very bright.

“Our telecommunications experience and ability to deliver both small and large scale telecommunications infrastructure is a winner for carriers,“ said Phil Cooper.

For ten years, Leighton Contractors has been strengthening its expertise in telecommunications with the design, construction and project management of telecommunications infrastructure projects.

Leighton Contractors has designed and installed over 11,000 kilometres of cable and this figure will reach almost 20,000 kilometres when Nextgen is complete.

During the last ten years, Leighton Contractors and Visionstream have turned over approximately $2 billion dollars of work in telecommunications. Today, Leighton Contractors employs over 1,000 people and is Australia’s largest independent provider of telecommunications services and infrastructure.

For further information please contact:
Phil Cooper
Managing Director
Vytel Pty Limited
Telephone (03) 8416 0403

Annie Luczka
Manager, Corporate Affairs
Leighton Contractors Pty Limited
Telephone (02) 9925 6675
Mobile (0413) 316 948