Preferred Bidder for Gold Coast Project

RNS Number : 0930G

International Public Partnership Ld

06 May 2011

 



6 May 2011

INPP Consortium Named Preferred Bidder
for Gold Coast Light Rail PPP

International Public Partnerships Limited (INPP), the listed infrastructure investment company, is pleased to announce that the GoldLinQ consortium has been named as preferred bidder for the Gold Coast Rapid Transport project in Queensland, Australia.

The A$1 billion contract between the Queensland State Government and GoldLinQ relates to the provision of 13km of above ground light rail between Gold Coast University Hospital and Broadbeach and will include 16 stations, a number of viaduct and bridge structures, as well as the provision and operation of 14 rail vehicles. The project has been designed to accommodate a peak daily usage of 75,000 passengers.

The project is expected to reach financial close in June 2011, at which point INPP will be investing a 26.6% equity stake. INPP will invest along with Plenary Group, Marubeni Group, Keolis and Aveng Group. Further financial details will be available at financial close. Construction is expected to take three years to complete, with operations commencing in 2014.

The Australian PPP market continues to be a key focus for INPP's diverse portfolio and the light rail project is the Company's eighth investment in the country.

Key features of the project include:

·     15 year concession term ending in 2029

·     Revenues linked to the availability of the asset, and partially linked to Australian CPI

·     Construction and operations risk fully passed down to McConnell Dowell and 
Bombardier (Design and Build Contractors) and Keolis and Downer EDI (Operations and Maintenance Contractors)

·     Revenues contracted with the Queensland State Government

·     Robust financial structure in place with conservative gearing and senior debt provided 
for the term of the concession by KfW, Banca Intesa, BBVA and Export Development Canada.

Giles Frost, Director of Amber, said: "The project provides INPP with a key investment opportunity in the rail and rolling stock sector, within which the Company has a strong track record. The investment is further evidence of our expertise and ongoing commitment to the active Australian PPP market, where there continues to be a strong pipeline of opportunities being offered by various states. Through its investment advisor, Amber Infrastructure, the Company is well positioned to take advantage of further opportunities in the market going forward."

For further information:

Bianca Francis/Jamie Hossain                             [phone]/0572
Amber Fund Management Limited                                

Hugh Jonathan/Nick Westlake                            [phone]/1345
Numis Securities       

Ed Gascoigne-Pees/Ed Berry                              [phone]/7297
Financial Dynamics

Notes to Editors:

About International Public Partnerships (INPP):

International Public Partnerships Limited (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP) and private finance initiative (PFI) procurement methods.

Listed in 2006, INPP is a long-term investor in 60 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters and transport projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term government-backed yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.

Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of more than 50 dedicated infrastructure specialists which originate and source a strong pipeline of projects for INPP.

Visit the INPP website at www.internationalpublicpartnerships.com for more information.

 

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