Lend Lease and Bouygues awarded $2bn Sydney tunnel deal

A Bouygues-Lend Lease joint venture has been awarded a US$2bn contract for the design and construction of the NorthConnex motorway tunnel and the widening of the M2 motorway in Sydney.  

The project is a 9km twin-tunnel link from the southern end of the M1 Pacific Motorway at Wahroonga to the M2 Motorway at the Pennant Hills Road interchange. When it is completed in 2019, it will be the longest road tunnel in Australia. 

The project is being developed by the urban toll road operator Transurban and its partners in the Westlink M7. The Australian federal government and the government of New South Wales have contributed $800m to the project and the Canada Pension Plan Investment Board will invest US$410m in return for a 25% stake. Transurban will hold 50% of the shares and the Queensland Investment Corporation will hold the remaining 25%. 

Lend Lease and Bouygues were announced as the preferred tenderer in March last year. Construction is expected to start early this year. 

A consortium comprising Bouygues and Lend Lease, among others, recently won a contract to finance, design and build the first phase of a $7bn toll road in Melbourne. 

Photograph: Artist’s impression of the NorthConnex Motorway (NorthConnex)

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