A consortium involving Ferrovial subsidiaries Cintra and Amey is Preferred Respondent for an A$1.8bn concession to upgrade and maintain western Melbourne’s road network ahead of an expected surge in population.
The public-private partnership scheme involves financing the duplication of six suburban arterial roads and upgrading hundreds of kilometres of road network in return for "availability payments" over 20 years after construction.
Ferrovial subsidiaries Broadspectrum and Amey will take charge of maintenance.
Cintra, through the Netflow joint venture recently formed with Plenary, was selected by the State of Victoria as Preferred Respondent for the design, construction and financing of the upgrade, in a contract valued at A$1.8bn (just under US$1.4bn).
The Western Roads Upgrade project includes the upgrade and duplication of six suburban arterial roads, the construction of two new interchanges and the rehabilitation and maintenance of the more than 700-lane-kilometres road network in the west of Melbourne.
"Our team in Australia is fully committed to improving the mobility of its residents, providing opportunities for local economic growth and serving current and future needs in the country," said Enrique DÃaz-Rato, Cintra’s chief executive.
WBHO Infrastructure will be in charge of the construction works that comprise the project.
The plan is to increase capacity and driver safety in an area of Melbourne where fast population growth is expected in the coming years.
The concession term will be over 20 years from the end of construction, expected for 2020. In the coming months the consortium will work to achieve financial close. Design and construction works will start as soon as financial close has been achieved.
The project is the second investment of Ferrovial in Australia since the Toowoomba Second Range Crossing awarded in 2015.
The Western Roads Upgrade is the first project awarded since the creation of the Netflow joint venture between Cintra and Plenary to develop road projects in Australia and New Zealand.
Image: The plan is to increase capacity and driver safety in western Melbourne, where fast population growth is expected in the coming years (GCR, Google Maps)