Westlink named preferred bidder for Western Sydney Orbital
Issue Date: 28 October 2002Issued By: Leighton Holdings LimitedCompany Announcements Office
The Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000
Re: Westlink named preferred bidder for Western Sydney Orbital
Dear Sir,
Please find attached copies of media releases issued today by Westlink Motorway Limited and the New South Wales Minister for Transport. Leighton Holdings’ wholly owned subsidiary Leighton Contractors is a member of the Westlink consortium.
Leighton Contractors’ share of the design and construction of the Western Sydney Orbital is expected to be worth approximately $750 million. Leighton Contractors will also take a 10% equity stake in the Westlink consortium.
Yours sincerely,
A.J. MOIR
Company Secretary
Westlink named preferred bidder for Western Sydney Orbital
Issue Date: 28 October 2002
Issued by: Westlink Motorway Limited
The WestLink Motorway Limited consortium is delighted to have been awarded preferred bidder status for the $1.5 billion Western Sydney Orbital (WSO), the largest single road construction project ever awarded in New South Wales.
As preferred bidder, WestLink will now commence detailed discussions with the RTA to achieve financial close as soon as possible. Construction will commence immediately after financial close.
The WestLink consortium comprises:
- Macquarie Bank Limited - Financial adviser to Westlink
- Macquarie Infrastructure Group – Major project underwriter
- Transurban Group – Major project underwriter
- Leighton Motorway Investments Pty Ltd – Project underwriter
- Abigroup Limited – Construction completion guarantor and project underwriter
- Leighton Holdings Limited – Construction completion guarantor
- Leighton Contractors Pty Ltd – Design and construction contractor and operations contractor with Abigroup Contractors
- Abigroup Contractors – Design and construction contractor and operations contractor with Leighton Contractors.
Equity for the project is provided by Macquarie Infrastructure Group, Transurban Group, Leighton Motorway Investments Pty Ltd and Abigroup Limited.
The debt component of the fully underwritten proposal is provided by the National Australia Bank Limited, Royal Bank of Scotland (Australia) Pty Ltd, Bank of America, National Association and West LB AG.
Leighton Contractors and Abigroup Contractors will share the design and construction contract on an equal basis. The operations and maintenance contract for the life of the concession period will also be shared equally by both contractors.
The WSO constitutes a critical component of Western Sydney’s transport infrastructure. At 39 km and four lanes, it will be Australia’s longest motorway and will link with the M5 at Prestons, the M4 near Minchinbury and the M2 at West Baulkham Hills.
The WSO will be fully electronically tolled, with no cash collection or stopping at toll booths. Instead, tolls will be paid electronically – at freeway speeds - resulting in significantly improved traffic flow.
Media Contacts for WestLink members are as follows:
Brian Tyson, Westlink, 02 9552 4499
Dennis Eagar, Macquarie Infrastructure Group, 0414 345 176
Mark Pearce, Transurban, 0417 367 425
Annie Stante, Leighton Contractors, 0413 316 948
Ken Scott-McKenzie, Abigroup, 0419 144 938
Preferred Builder for Western Sydney Orbital
Issue Date: 28 October 2002
Issued by: John Anderson, Acting Prime Minister and Carl Scully NSW Minister for Transport and Roads
Australia's biggest urban road project has moved a major step forward today with the selection of the preferred consortium to build the motorway at a cost of $1.5 billion for design and construction.
The Commonwealth and NSW Governments today announced the preferred consortium to design, build, maintain and operate the 40-kilometre Western Sydney Orbital was WestLink Motorway Limited, sponsored by Leighton Contractors and Abigroup Ltd, along with Macquarie Infrastructure Group and Transurban Infrastructure Development Ltd.
The Acting Prime Minister, Mr John Anderson, and the NSW Minister for Roads, Mr Carl Scully, said that final detailed negotiations will now proceed with WestLink in order to achieve the best value for money and the delivery of a new first class motorway.
The Western Sydney Orbital is a Commonwealth Government project as part of the National Highway program, with project management by the NSW Roads and Traffic Authority.
Mr Anderson said that this will be the most significant contract to be awarded for a Sydney road infrastructure project in real terms since construction of the Sydney Harbour Bridge.
"The road will link the M5/Hume Highway at Prestons to the M2 Motorway at West Baulkham Hills, crossing the M4 Motorway at Eastern Creek," Mr Anderson said.
"When completed in 2007 there will be a total of 17 interchangesand motorists will be able to travel from south of Liverpool to Pennant Hills in less than 30 minutes saving over an hour."
"By avoiding an estimated 56 sets of traffic lights on existing routes, the Orbital will reduce travel times across Sydney by joining the Hume Highway to the F3."
Mr Scully said when the Western Sydney Orbital opens in 2007 it is expected to take 60,000 vehicles, including 10,000 heavy vehicles, off western Sydney roads.
"A high standard of applications to build, own and operate the new motorway has made the selection process difficult. The proposals have been carefully assessed by an expert panel," Mr Scully said.
"The process of selecting a preferred tenderer has revealed the capability of the road building industry in Australia," he said.
Three consortia submitted proposals:
- Orbital Parkway Alliance (sponsored by Thiess and Baulderstone Hornibrook).
- WestLink Motorway Limited (sponsored by Leighton Contractors and Abigroup).
- Western Link Joint Venture (sponsored by the Transfield Group and Bouygues Travaux Public SA).
This was reduced to two, in June, with the shortlisting of Orbital Parkway Alliance and WestLink Motorway Limited. Orbital Parkway Alliance will now remain the reserve proponent for the project.
"As well as the obvious benefits to local and through traffic, this project includes what is considered to be the longest combined pedestrian and cyclist path in Australia including bridges over arterial roads and waterways to provide nearly 40 kilometres for commuter cyclists and recreational use," Mr Scully said.
"Extensive landscaping and other measures to protect the natural and social environment will be implemented. There will be ongoing consultation and opportunities for community involvement.
"This is an important link in the network of major motorways around Sydney that have improved traffic conditions in recent years, taking trucks off local streets and giving them back to residents.
"The State Government's plans for the Cross City Tunnel and the Lane Cove Tunnel are well advanced and together with the Western Sydney Orbital will deliver travel time savings and improved air quality."
The Western Sydney Orbital will be coordinated with other toll systems in Sydney. Toll collection will be fully electronic so there will be no need for tollgates. The toll will be subject to consumer price index adjustments but will be consistent with the previously indicated concept of 25 cents per kilometre with a $5 toll cap
Media Contacts
Bill McKinley ( Mr Anderson’s office ) 02 6277 7680
Phillip Kelly ( Mr Scully’s office ) 02 9228 4455 / 0419 411 218
Western Sydney Orbital – Fact Sheet
Background:
- The 40km WSO is the largest ‘missing link’ in Sydney’s orbital road network.
- The completed project will run from the intersection of the M5/Hume Highway and Camden Valley Way at Prestons in the south to Elizabeth Drive at Cecil Park.
- From there the route will travel north, parallel and east of Wallgrove Road, crossing the M4 Motorway and the Great Western Highway at Eastern Creek.
- It will then follow the Phillip Parkway corridor to Richmond Road, turning east to follow the Castlereagh Freeway corridor and link with the M2 at West Baulkham Hills.
Project Benefits
- The WSO will provide significant social, environmental and economic benefits, including:
- reduced travel times and improved road safety in western Sydney
- improved access to employment opportunities for the people of Western Sydney by linking existing and future industrial and residential areas
- stronger economic growth by encouraging further investment in Western Sydney
- reduced numbers of heavy and other vehicles using local roads resulting in better local air quality and less noise in many residential areas
- improved access to other growing cities and regions including the Central Coast, Newcastle, the Illawarra and Canberra.
Project Features
- The route will comprise four traffic lanes (two in each direction), a wide central median, shoulders, cuttings and embankments.
- There will be 17 interchanges, including at the Hume Highway/M5 at Prestons, Elizabeth Drive at Cecil Park, The Horsley Drive at Horsley Park, the M4 at Eastern Creek, Richmond Road at Oakhurst and Sunnyholt Road at Kings Langley.
- Built to motorway standard, the WSO will be designed for safe travel at 100 – 110kmph
- 38 overpasses and underpasses will also be constructed to maintain local access for pedestrians, cyclists and motorists.
- An urban design strategy to reduce potential impacts on areas such as Cecil Hills and Casula, including tree planting and landscaping, noise mitigation measures where necessary and the provision for regional parklands.
During Construction
- Planning approval includes comprehensive measures to minimise the impact of the motorway’s construction on the community, including:
- Maintaining current public transport service levels and vehicle and pedestrian access.
- Extensive restrictions on noise and emission generating construction activity.
- Establishment of a 24-hour toll-free hotline for community complaints and queries.
- Because of the scale of the project, community liaison groups will be formed as a conduit for ongoing consultant sessions covering different sections of the route.
Associated Road Upgrades
- An essential part of the project is to ensure that traffic arrangements at Interchanges and in adjoining local streets are managed effectively. Local road upgrades include Beech Road, Prestons, McIver Avenue, West Hoxton and Power Street, Glendenning.
Funding
- The $1.5 billion design and construct cost is being partly funded by the Federal Government.
- The private sector has been invited to submit proposals to finance the remainder of the project under what is known as a BOOT (Build, Own, Operate, Transfer) Scheme. As with other BOOT projects such as the Eastern Distributor and M2 Motorway, this will involve motorists paying a toll to use the motorway.
- The toll has been estimated at 25 cents per kilometre, to a maximum of $5. The toll will be electronically collected.
The Environment
- The RTA is committed to minimising environmental impacts during construction.
- A detailed Environment Management Plan covering both the construction and operation of the motorway will incorporate an extensive range of mitigation measures and environmental safeguards.
- The RTA will also continue to work closely with the Environment Protection Authority, National Parks and Wildlife Service and other relevant groups to ensure the best environmental outcomes for the project.
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