GOLD COAST RAPID TRANSIT

SOCIAL (PPP)

ASSET DESCRIPTION

  • 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