ADVISORY EXCELLENCE AWARD FINALISTS 2020

This award recognises excellence in advisory services on major infrastructure projects – qualifying disciplines may include engineering, design, legal or policy advice.

Sponsored by

+ NOMINEES:

ADVISORS TO THE QUEENSLAND GOVERNMENT:

ARUP, CLAYTON UTZ, KPMG, MINTERELLISON, RPS

ADVISORS TO THE CONSORTIUM:

ALLENS, CORRS CHAMBERS WESTGARTH, HERBERT SMITH FREEHILLS,

MACQUARIE CAPITAL

The Cross River Rail project involves the delivery of a new 10.2 kilometre rail line from Dutton Park to Bowen Hills, which includes 5.9 kilometres of twin tunnels, four new underground and upgraded above-ground stations. The project will improve accessibility to the Brisbane CBD while increasing the capacity and efficiency of the entire network, and helping to unlock activity in precincts surrounding the proposed stations.

With an estimated total capital cost of $5.4 billion, to be fully funded by the Queensland Government, the project represents a landmark undertaking for the state. The Tunnels, Stations and Development (TSD) package is the largest PPP transaction ever undertaken in Queensland. Cross River Rail is also the largest single public transport infrastructure project undertaken in Queensland to date. The PULSE consortium, which was awarded the PPP contract, comprises CIMIC Group companies Pacific Partnerships, CPB Contractors, and UGL, alongside international partners DIF, BAM and Ghella. The Cross River Rail PPP transaction advisors have been shortlisted for the Advisory Excellence award as recognition for the scale and complexity of the transaction, which utilised a multi-package delivery structure. The Judging Panel noted this was the largest PPP transaction ever undertaken in Queensland and will play a pivotal role in the transformation of Brisbane’s public transport network.

REGIONAL RAIL FLEET PROJECT

+ NOMINEES:

ADVISIAN, HERBERT SMITH FREEHILLS, KING & WOOD MALLESONS, KPMG, SMEC,

WSP

The $2.8 billion Regional Rail Fleet Replacement Project will see new rolling stock delivered to replace NSW’s entire regional and interstate rail fleet. Procured by Transport for NSW (TfNSW) as a PPP, the contract includes the design, build, finance and maintenance of a new fleet maintenance facility in Dubbo and 29 new train sets. The project also includes the upgrade and operation of the existing rail maintenance facility in Sydenham, Sydney, and new training simulators. The contract was awarded to the Momentum Trains consortium, which will deliver the project with Construcciones y Auxiliar de Ferrocarriles SA’s (CAF SA) Civity regional rolling stock platform, which has also won contracts in the UK and Netherlands in recent years. CPB Contractors will be subcontracted by CAF SA to design and construct the maintenance facility, with UGL Rail Services providing maintenance services for the fleet and maintenance facility. The financial structure on Regional Rail involves an expiry payment (debt balloon) at the end of the initial 15-year term. The notional debt amortisation profile is put in place over the longer period of 35 years, with the expiry payment only paid to Momentum Trains if the concession is not extended for one or more of the five-year extension option periods after the initial fifteen-year concession term. The Regional Rail transaction advisors have been shortlisted for the Advisory Excellence award for the innovative financial structure adopted to overcome various challenges. The Judging Panel noted the use of the PPP model to drive commercial and financial flexibility for TfNSW, while providing value for money for the taxpayers, pricing certainty and whole-of-life asset management.

+ NOMINEES:

AURECON, EY, KPMG, MINTERELLISON, WHITE & CASE

The South Australian Department of Treasury and Finance (DTF) project will provide two ‘Birth to Year 12’ schools in the fast-growing regions in Aldinga to Adelaide’s south, and Angle Vale to Adelaide’s north. Each of the new schools will accommodate 1,675 students, including 100 inclusive places for students with a disability and 75 childcare places, plus 211 teaching and support staff, with capacity for future expansion. Both schools will serve as community hubs, with access to facilities for community engagement, sports and recreation out of school hours. The schools are expected to open before the start of the 2022 school year. The $469 million PPP contract to design, construct and maintain the schools was awarded to TESA Education, a consortium comprising of Tetris Capital, Sarah Constructions, ISS Services, DIF Capital Partners and ANZ. ISS will maintain the schools under a 28-year operations period, with the Department of Education retaining all core educational functions.

The SA Schools PPP transaction advisors have been shortlisted for the Advisory Excellence award as recognition for the outcomes this approach achieved for local communities and SA taxpayers. The Judging Panel noted the value for money outcomes of the contract – estimated to be a 24 per cent saving when compared to traditional procurement over the life of the contract – driven by innovation in delivering whole-of-life efficiencies. The Panel also commended the outcome of providing access to sporting, cultural and community facilities to fast-growing communities, which is often a major challenge.

SYDNEY METRO CITY AND SOUTHWEST AUGMENTATION

+ NOMINEES:

ALLENS, ASHURST, EY, HERBERT SMITH FREEHILLS, MINTERELLISON, PLENARY

GROUP

Representing the biggest public transport program of works in Australia, Sydney Metro City and Southwest is a new 30-kilometre metro line extending metro services from Chatswood under Sydney Harbour, through new CBD stations and south-west to Bankstown.

Sydney Metro, together with signalling and infrastructure upgrades across the existing network, will increase the capacity of train services across Sydney from about 120 per hour today, to up to 200 services per hour beyond 2024. The metro network will be fully segregated from the existing Sydney Trains network between Sydenham and Bankstown, improving the reliability of services on the line. As part of the project’s delivery model, comprising over a dozen major contract packages, Sydney Metro executed a Contract Finalisation Deed with Northwest Rapid Transit, the consortium delivering Stage One of Sydney Metro. The Deed provided for potential changes to the original Operations Trains and Systems (OTS) PPP contract to take into account the delivery of extra trains and key rail systems for Stage One of the project. The Sydney Metro City and Southwest Augmentation transaction advisors have been shortlisted for the Advisory Excellence award as recognition for the complexity of relationships between project proponents (including government, Project Co, advisers and contractors) and also the challenges arising from the need to introduce flexibility into the original agreement.

UNIVERSITY OF MELBOURNE – STUDENT ACCOMMODATION

+ NOMINEES:

ASHURST, FLAGSTAFF PARTNERS, MINTERELLISON

Ashurst advised the University of Melbourne on its first student accommodation agreement with AMP Capital through its Diversified Infrastructure Trust. The transaction, which achieved financial close in November 2018, involved 954 beds across two facilities being refurbished and constructed on behalf of the University at its Parkville campus. Ashurst then advised on the addition of a 42-year concession agreement with AMP Capital in 2019 for Melbourne Connect, an academic precinct with an additional 527 student beds. MinterEllison advised AMP Capital through the transactions.

Under the agreement, the University of Melbourne will retain ownership and operational responsibility of the facility. AMP Capital bears responsibility for facilities management, which will be undertaken by Spotless, and takes occupancy risk for the 40 year operational term. The judging panel shortlisted the University of Melbourne Student Accommodation transaction advisors for the Advisory Excellence Award in recognition of the innovation in adapting and augmenting the original agreement to develop a long-term, quasi-PPP. The judging panel noted the structuring of the original agreement, which provided for Melbourne Connect to be added into the arrangement between the University and AMP Capital.