$3.5 billion funding secured for WestConnex
21 Nov 2015
Federal Minister for Major Projects Paul Fletcher and NSW Roads Minister Duncan Gay today announced the financial close on $1.5 billion in private sector debt and signing of a $2 billion Australian Government concessional loan for a new world class motorway network for Sydney.
The announcement comes after a day of major WestConnex announcements including the 'lifting' of one of the first concrete girders to widen the M4 and release of the updated business case.
Mr Fletcher said WestConnex is the first major road project to receive concessional loan funding from the Australian Government.
"I'm very pleased the Australian and NSW Governments have been joined by major Australian and international lenders, the Commonwealth Bank, the National Australian Bank, Westpac Banking Corporation and Credit Agricole, who are providing $1.5 billion in debt to this project," Mr Fletcher said.
"This is evidence of strong confidence in the project."
"The Australian Government’s $2 billion concessional loan will accelerate the New M5 upgrade, enabling the New M5 to be delivered at the same time as the widened and extended M4 in 2019."
NSW Roads Minister Duncan Gays said the NSW Government is committed to delivering the New M5 up to 18 months earlier than originally planned.
"The New M5 includes a significant upgrade of King Georges Road Interchange which will cut travel time through the interchange by up to half for 40,000 motorists," Mr Gay said.
"Importantly, the New M5 will also more than double capacity on the M5 East corridor by adding extra twin tunnels to the existing M5 East tunnels."
The financial close also enabled completion of the New M5 Project Deed and award of the Design and Construct contract, which was awarded to the Leighton Dragados Samsung Joint Venture.
The Australian Government is providing $1.5 billion towards WestConnex, in addition to the concessional loan of $2 billion. The New South Wales Government is providing $1.8 billion.
WestConnex tolls will be distance-based (motorists only pay for the length of road they use) and capped like the current M7. Motorists will always have a free alternative route.