Delivery

Delivering the projects

On 19 May 2008 the State Government announced BrisConnections as the preferred bidder for Airport Link, Northern Busway (Windsor to Kedron) and the Airport Roundabout Upgrade projects.

 

BrisConnections was sponsored by Macquarie Capital Group, Thiess and John Holland.

 

Under a Public-Private Partnership (PPP) BrisConnections financed, designed, constructed and commissioned Airport Link.

 

The contractor designed and built the Windsor to Kedron section of the State-funded Northern Busway and the Airport Flyover, before handing it back to the State to operate and maintain.

 

The Airport Link, Northern Busway (Windsor to Kedron) and Airport Roundabout Upgrade projects were delivered at a fixed cost to the taxpayer of $1.7 billion.

  • The State’s contribution to Airport Link is $267 million.
  • The design and construction cost of the Northern Busway (Windsor to Kedron) is $444 million.
  • The design and construction cost of the Airport Roundabout Upgrade is $272 million.

The contract between the State Government and BrisConnections was signed on 2 June 2008. On 30 July 2008 financial close was achieved enabling the Airport Link and Northern Busway (Windsor to Kedron) projects to enter the pre-construction phase.  On this day, the Coordinator-General issued his final approval for Airport Link with the release of his Change Report.

 

 

Background

 

Expressions of Interest in the projects were called in February 2007. Four groups expressed interest and in June 2007, the following groups were short-listed to bid for the projects:

  • BrisConnections (Macquarie Capital Group, Thiess and John Holland)
  • North Connect (Baulderstone Hornibrook, Abigroup, Bilfinger Berger Civil and Babcock & Brown)
  • Northern Motorway (Leighton Contractors and ABN AMRO Australia).

The Queensland Government asked the three groups bidding for the Airport Link and Northern Busway (Windsor to Kedron) projects to consider solutions to address traffic congestion associated with the roundabout to improve traffic flow to and from the airport. All bidders submitted options for the roundabout.

 

Bids closed on 14 December 2007, followed by an extensive evaluation process.  On 19 May 2008, the State Government announced BrisConnections as the preferred bidder for the three projects. Financial close was reached on 30 July 2008.

 

What is a PPP?

 

A Public-Private Partnership (PPP) is a contractual arrangement between Government and the private sector which harnesses the skills and capability of the private sector in designing, constructing, operating, maintaining and financing major infrastructure projects.

 

One of the key characteristics of a PPP is that the Government maintains control of the infrastructure by monitoring the private sector's performance. The Government makes payments based on a performance regime and if necessary, can 'step-in' to ensure services are delivered.

 

A PPP brings new incentives to the private sector to deliver infrastructure as payments don't begin until the facilities are ready to operate.