M5 South West Motorway
Project Name:
M5 South West Motorway
Client Agency:
Roads and Traffic Authority of NSW (RTA)
Project Description:
The project involves financing, construction, operation and maintenance of a 14.5 km motorway (the M5) between Beverley Hills and Casula in the south-west of Sydney. The arrangement compromised:
- RTA providing loans to the private sector of $35 million, inlcuding $22 million in land and $13 million in cash, repayable after the private sector's bank debt has been fully repaid;
- a concession period of 22 years (post-completion), after which the road would revert to public ownership;
- a toll of $1.10 for cars and $3.30 for trucks (December 1989 dollars), escalated at the greater of CPI or 9% per annum.
Private Sector Partners:
Interlink Roads Pty Limited (Interlink) and the Commonwealth Bank of Australia (CBA)
Project Details:
Contract value: $315 million (Estimated Capital Cost at the time of the contract award in 1991)
Contract term: 22-Feb-1991 to 2014 (under later arrangements has been extended till Aug-2023)
Operation began: The road was opened to traffic in Oct-1992. The M5 western extension and Moorebank Avenue Interchange were opened to traffic in 1995 and Feb-2003 respectively.
Project Variations:
29-Jun-1993 M5 western extension
The RTA and Interlink negotiated to extend the M5 to the west from Moorebank to Prestons. The western extension with the estimated capital costs of $65 million involved:
- RTA making an additional $50 million loan to Interlink, with the balance of the cost being financed by the CBA;
- extension of the concession period by 8 years to 2022;
- renegotiation of tolling arrangements, requiring Interlink to peg tolls for 3 years and then escalate at CPI (foregoing the right to increase tolls at 9% per annum, as provided in the original deed).
30-Jun-1997
The loans previously advanced by RTA to Interlink (totalling $85 million) to construct the M5 and the M5 western extension were sold to CBA for $110 million. The proceeds were used to partially fund the construction of the M5 East extension.
15-May-2002 Moorebank Avenue Interchange
Interlink proposed to finance and construct the grade separated interchange at the intersection of the M5 and Moorebank Avenue with the estimated capital cost of $32 million, to be funded by the increased traffic projected as a result of the improved traffic flow, with the balance of the cost being funded by an increase in the M5 concession term until Aug-2023.
20-Dec-2011 M5 South West Motorway Widening
The NSW Government reached an in-principle agreement with Interlink Roads in December 2011 to widen the M5 South West Motorway from two lanes to three lanes in each direction between Camden Valley Way and King Georges Road. Detailed contractual negotiations are continuing.
Related Documents:
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