Concession to design, construct, operate and maintain a world class light rail system on the Gold Coast
Concession to design, construct, operate and maintain a world class light rail system on the Gold Coast
Stage 1 achieved completion in July 2014, connecting Griffith University to Broadbeach, passing through the key activity centres of Southport and Surfers Paradise, stopping at 16 stations.
Stage 2 achieved completion in December 2017, connecting Helensvale with Gold Coast University Hospital, including three new stations and two park ‘n’ ride facilities
Operations and Maintenance by Keolis and Downer EDI (jointly and severally in joint venture) 18.8% equity interest with board representation
INVESTMENT FUNDAMENTALS
15 year concession with QLD State Government, expiring 2029
QLD Government retains all demand/patronage risk
Availability-based payment indexed to CPI and LPI
Full-term bank debt (provides refinancing downside protection)
Experienced and dedicated management team
KEY RISKS AND MITIGATION
Operating cost – O&M obligations fully passed through to O&M provider. Equity retains limited exposure to uninsurable force majeure
Abatement – Comprises reliability, punctuality and quality components. Risks are passed through to O&M provider
Limited retail revenues supported by long term lease
