Major Road Projects Victoria has asked two bid groups to go through a so-called revise and confirm process for the Suburban Roads Upgrade PPP.
Sources close to the process said the government is still reviewing tenders from three consortia that were originally shortlisted and no bidders have been told they are unsuccessful.
But it has asked two bidders to enter a revise and confirm process that requires them to review parts of their bids and resubmit updated proposals.
Four sources familiar said the two are the CIMIC and Plenary-led consortia. They said a revise and confirm process is the equivalent of a “best and final offer”, or BAFO, that shortlisted bid groups are often asked to submit and this likely means Capella’s consortium is actually no longer in the running.
Spokespeople for the government and Capella’s parent Lendleaseand Plenary declined to comment. CIMIC did not respond to a request for comment.
The government is likely to sign a contract with a winning group by early next year.
The projects involve two PPPs – the Northern Roads Upgrade and the South Eastern Roads Upgrade – worth about AUD 2.2bn (USD 1.5bn) to upgrade and maintain several arterial roads and associated infrastructure like bridges and footpaths.
The sources said the debt will be around AUD 1.5bn- AUD 1.6bn, with about half of that running for the length of the 23.5-year concession, which includes the construction and upgrade period.
Some of this will come from banks and some from institutional debt investors.