GOLD COAST RAPID TRANSIT

SOCIAL (PPP)

ASSET DESCRIPTION

  • Concession to design and construct and operate 13km light rail system on the Gold Coast
  • Constructed by McConnell Dowell and Bombardier. Completed in July 2014
  • Operations and Maintenance by Keolis and Downer EDI (jointly and severally in joint venture)
  • 16.67% 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