Balfour Beatty consortium pulls out of Sydney light rail PPP

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Balfour Beatty consortium pulls out of Sydney light rail PPP

According to local sources, iLinQ, one of the three consortia shortlisted for the new light rail system for CBD and South East Sydney, has announced that it is withdrawing from the PPP tender process.

According to the sources, Balfour Beatty is concerned about cost overruns on moving underground utilities in an area called George Street. It seems like utilities such as water, electricity and telecommunications lines have to be moved, but utilities companies like Telstra and AGL will have no incentive to move their infrastructure quickly and cheaply.

Other sources mention that the company had recently signalled a profit warning and it was reviewing its operations in Australia.

However, the bid's collapse is probably a combination of these factors.

Balfour Beatty was part of a consortium composed also by Keolis DownerBombardierMacquarie Capital and McConnell Dowell.

The other two shortlisted candidates are the following:

The contract will cover design, finance, construction, services relocations, operation and maintenance of the 12-kilometre project, as well as the operation and maintenance of the Inner West Light Rail network.

The project is estimated to cost approximately A$1.6 billion. Construction is expected to commence this year 2014 and is expected to take five or six years to complete. From mid-2015, the successful tenderer will also operate and maintain the existing light rail network.

On 4 June 2014, Australia's Minister for Transport Gladys Berejiklian announced green light had been given for the project. The main contract to design, build, operate and maintain the new system is expected to be awarded by early 2015 with major construction commencing soon after. The service is expected to be open and operational in 2019 or 2020.

List of country news

Country news

  • July 25, 2014

    Colonial First State receives cornerstone investment for clean energy fund

    The Clean Energy Finance Corporation (CEFC) has announced an agreement with the Direct Infrastructure division of Colonial First State Global Asset Management (CFSGAM) to establish Australia's first unlisted clean energy direct infrastructure investment platform for institutional investors, the CFS Australian Clean Energy Infrastructure Fund. Read more
  • July 29, 2014

    Ferrovial, Bouygues and Acciona in the race to buy John Holland

    According to sources, Leighton Holdings Ltd. (LEI), the Australian builder controlled by Hochtief AG, has received several bids for its AU$1 billion-plus construction business John Holland. We understand that first-round bids for the business closed on 24 July 2014. Read more
  • July 30, 2014

    Korean military fund puts $40m in Australia's infrastructure

    South Korea's $8.5 billion Military Mutual Aid Association (MMAA) has been the first offshore and non pension fund investor in Australia's The Infrastructure Fund (TIF). Read more
  • July 31, 2014

    WESTADIUM to sign Perth stadium PPP

    Western Australia's Premier Colin Barnett and Sport and Recreation Minister Terry Waldron on 17 July 2014 unveiled the winning stadium design for the new Perth Stadium and Sports Precinct at a special event on the Burswood Peninsula. Read more
  • August 06, 2014

    John Holland-led consortium named preferred contractor for Ravenhall Prison PPP

    The project involves the design, construction, finance, operation and maintenance of the prison for a period of 25 years. The Ravenhall prison will expanded to accommodate 1000 medium security male prisoners. The project also involves the design, construction, finance and maintenance of a Statewide Services Building. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.