The ATC government has given the green light to develop the light rail PPP project in Canberra, Australia.

Although there are still discussions regarding the final investment estimate figure, it is expected that the final business case is released next month.

The 12 km light rail project will be developed on a build, own and operate (BOO) basis for a period of 20 years. The construction cost is estimated at around A$783 million, which includes a nominal A$610 million plus A$173 million contingency.

The tender process is scheduled to be launched on 31 October by issuing a request for expressions of interest (RFEOI). Construction is expected to start by mid 2016 and the tram is set to be operational in 2019. The new LTR is expected to have a capacity of about 200 people.

Capital Metro, the agency behind  the project, appointed in mid June Clayton Utz to provide specialist legal advice for the project. In May we reported that Ernst and Young was working on a business case, looking at costs, benefits, funding and ownership options, and ensuring all the opportunities offered by light rail can be realised.

An Arup-led consortium, which includes six local suppliers, has been working on the project's technical elements including engineering, design, construction, operations, urban design, maintenance, network integration, sustainability, land development and safety management.

This PPP project will be the model for other future potential projects to develop the Canberra light rail network system.

This contract would follow the Sydney light rail project which is also being delivered through a PPP procurement.