Concession to provide 8 new stations, interchange facilities and train systems over a new 23km rail link from Epping to Rouse Hill, and to upgrade the existing 13km Epping to Chatswood link
State retains all demand risk
Operation of all train control systems together with customer service and maintenance of all rolling stock and infrastructure
5 year construction period with a 15 year operating term
INVESTMENT FUNDAMENTALS
CPI linked availability based payments from the State of NSW
Consortium with significant rail construction, and O&M experience
$3.6bn project, with equity requirement of $277m and State contribution during construction of $1.8bn
20% of the ordinary equity with board representation and 25% preferred equity
KEY RISKS AND MITIGATION
Construction risk is appropriately contracted to a JV of John Holland, Leighton Contractors, MTR and UGL
State to take full defect risk on early works
Rail Safety Accreditation required
Initial debt term of seven years. Refinance risk mitigated by the State taking base interest rate risk after the first refinance and a possible State paydown of 50% of the debt 2 years after operations commencement
