Plenary and Cintra’s Netflow consortium has been awarded the 20-year PPP to upgrade and maintain arterial roads in Melbourne’s west.
Known as the Western Roads Upgrade, the AUD 1.8bn project is the first of its kind in Australia involving a PPP over suburban roads.
In a statement issued Friday, Plenary managing director, Phil Dreaver, said the project is the first for the Netflow consortium since it was formed.
The concession involves eight road upgrades and duplication of close to 30km of lanes.
Initial upgrades to the roads are to start within three to six months of financial close followed by rehabilitation and ongoing maintenance of 750km of roads over a 20-year period from the end of completion of upgrades, with an availability payment over that period.
The Netflow consortium also includes WBHO Infrastructure as design and construction lead, ACE Contractors Group, Civilex, Fortunato Group, Negri Contractors and Winslow Group; and Ferrovial Services companies as services contractor.
Netflow beat two other bidders: Western Improvement Network including CIMIC’s CPB Contractors and Pacific Partnerships; and Western Roads Partnership including Lendlease and its finance arm Capella Capital.
Netflow and the Victorian government have now entered negotiations on the project design to reach financial close.
It is understood the financing includes a long-term bond backed by US life insurers, as reported.