Cross River Rail PPP reaches financial close

01 July 2019 - 12:00 am UTC

The CIMIC-led Pulse consortium reached contractual close on Cross River Rail’s AUD 4.58bn (USD 3.22bn) 5.9km tunnels and stations PPP yesterday (30 June), the company said in an announcement today (1 July).

 

Update: This article was changed after publication to note financial close was reached.

 

A spokesperson for CIMIC would not comment on when financial close would be achieved, but two sources familiar with the situation said today that it will happen soon.

 

A statement from Netherlands based DIF later confirmed financial close had been completed on 1 July.

 

CIMIC said in its announcement that its total share of the project revenue would be AUD 2.73bn.

 

Pulse is comprised of CIMIC and its subsidiaries, including Pacific Partnerships, which is contributing 49% of the equity for the project, and DIF Infrastructure Fund V, BAM PPP PGGM and Ghella Investments & Partnerships providing the balance.

 

CIMIC’s CPB Contractors and UGL will deliver the design and construction in a joint venture with Ghella and BAM International. UGL will also provide maintenance services for the project over 24 years.

 

Some of the 11 banks lending AUD 2.72bn to the project have been selling down debt on the project, as reported.

 

The full 10.2km Cross River Rail project is set to cost AUD 5.4bn to build. Some early works have already begun, with construction of the main tunnels and stations component beginning late this year.

 

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