The Australian PPP market has been buoyed recently by the announcement of Australia’s first wholly internationally funded PPP - the Gold Coast Rapid Transit (GCRT) project. The project has been touted as a positive message to the market domestically and internationally, by those involved. Allens Arthur Robinson, Corrs Chambers Westgarth and DLA Piper all advised on the A$1bn light rail project, which reached financial close on June 7. Mallesons Stephen Jaques partner Mark Upfold led the team advising the financiers, GoldLinQ. 

The project is particularly significant, according to Corrs lead partner Peter Schenk, as all three tiers of government worked together to ensure everything was delivered on time. The fact that it followed a ‘very tight’ timetable also sends a positive message to the market he said: “I think if the market sees all three tiers of government fully committed, following time-tables, it sends the message to the rest of the world that it’s not wasting its time investing in these sorts of projects.” Schenk was also optimistic that there will be other PPPs that are internationally funded as the economy recovers. With such a project, Schenk added that the challenge lies in helping foreign investors undestand the differences in approach between states.

The GCRT will also help restore confidence in the Queensland PPP market, as the State government has been criticised for not being committed to these types of projects in the past.

Other PPPs announced in the past month include Australia’s largest PPP – the Royal Adelaide Hospital, and a major NBN related PPP, the deal with Swedish mobile phone giant Ericsson to provide wireless access to the NBN for areas not covered by the national fibre network roll-out. The projects are each worth A$1.85bn and A$1.1bn respectively and the next large project will also be Queensland-based. The Sunshine Coast hospital is expected to reach financial close in the near future.

Schenk and David Warren led the Corrs team for the GCRT project, which advised the Queensland Department of Transport and Main Roads assisted by partners John Walter, Henry Prokuda, Daryl Clifford and Simon Ashworth. An Allens team led by partner Emma Warren advised financiers Plenary Group and its GoldlinQ Consortium partners, Bombardier, Downer EDI, McConnell Dowell and Keolis. DLA Piper advised KDR, a joint venture between Keolis, a subsidiary of French national rail operator SNCF, and Downer EDI Rail. Brisbane-based partner Alex Guy, Kim Broadbent and Dan Brown worked alongside Sydney partner, David East.