Aus & NZ: John Laing joins Melbourne Metro Tunnel PPP JV

18 December 2017 - 12:00 am UTC

John Laing has joined the consortium behind the Metro Tunnel Tunnels and Stations PPP in Melbourne, the UK listed developer said on Monday (18 December).

The Victorian Government and the consortium, called Cross Yarra Partnership, signed the contract on 18 October for the project.  

John Laing’s co-sponsors are Lendlease, John Holland, Bouygues Construction and Capella Capital. The consortium became preferred bidder for the PPP in July 2017.

This JV will deliver twin nine-kilometre tunnels and five new underground stations as part of the state of Victoria’s biggest ever public transport project, John Laing said in a statement.

The tunnels will run under Melbourne’s central business district, connecting the Sunbury line to the north-west of the centre to the Cranbourne-Pakenham line to the south-east.

As a result of this latest investment, John Laing has almost doubled its original guidance to invest GBP 200m for full 2017.

At a pre-close update on 8 December, the company said it had committed to invest GBP 340m in 2017, to which it has now added a further GBP 43m for the Metro Tunnel investment.

Investments by John Laing this year included: the new Grafton Correctional Centre in Australia (GBP 79.3m), the Buckthorn wind farm and Rocksprings wind farms, both in North America (GBP 110.5m), the I-66 managed lane project in the US, for GBP 118m; and two additional renewable energy commitments in France and Australia for a total GBP 32m.

No further investment commitments are expected in 2017, John Laing said.

The company is currently also part of nine shortlisted PPP bids due to reach financial close in 2018 or 2019, of which five are in North America and four in Europe.

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Metro Tunnel