Contractual close for Leighton Group in NWRL PPP

September 16, 2014
  • Engineering and Infrastructure

Leighton Group companies John Holland and Leighton Contractors, as part of the Northwest Rapid Transit (NRT) Consortium, have reached contractual close on a Public Private Partnership (PPP) with the New South Wales Government to deliver the $3.7 billion Operations, Trains and Systems (OTS) package for the North West Rail Link (NWRL) in Sydney.

The NRT consortium consists of John Holland, Leighton Contractors, MTR Corporation, UGL Rail Services and Plenary Group.

Leighton Holdings Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said: “The Federal Government’s objective is to catalyse $125 billion in new infrastructure spending by the end of the decade, and a large part of this is expected to be delivered through PPPs which presents a significant opportunity for Leighton. By bundling together the funding, construction and management of new projects we will be able to leverage greater results for our clients and shareholders. NWRL is an example of this.”

The NRT consortium will procure rolling stock and design, build, finance, and then operate the NWRL’s 36km rapid transit train service for a 15 year period. The net present value to the Leighton Group is $2 billion.

Under the PPP arrangement a four-way joint venture between MTR Corporation, John Holland,
Leighton Contractors and UGL Rail Services will deliver the five year construction phase.

John Holland Managing Director, Glenn Palin said: “NRT is committed to a successful partnership with the NSW Government. To that end, we will ensure construction, fit out and systems seamlessly meet operational needs so that commuters in the North West benefit from a safe, efficient rail service.”

Leighton Contractors Managing Director David Jurd said: “The NWRL will improve travel times, accessibility and amenity for commuters, paving the way for sustainable growth in Sydney’s North West and delivering wider benefits to the State’s economy.”

The NWRL is the first stage of Sydney Rapid Transit, Sydney’s new railway network and is scheduled to commence services in the first half of 2019.

The OTS PPP is the second NWRL contract win for the Leighton Group. In June 2013, Thiess and John Holland in joint venture with Dragados, were selected to deliver part of the NWRL’s tunnels and civil works under a $1.15 billion contract. The tunnelling contract commenced in June 2013 and is scheduled for completion in 2017.


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