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$11.1bn financing for Melbourne’s North East Link PPP completed
Global law firm Herbert Smith Freehills has advised the financiers to the “largest Public-Private Partnership in Australia”.
Jerome Doraisamy
Firm: Herbert Smith Freehills (PPP financiers).
“In a climate of changing risk appetite in the market, the ITC (Incentivised Target Cost) PPP model has long been mooted as one that could provide a more balanced approach to risk allocation. This is the first model of this nature brought to market and successfully banked,” HSF said in a statement.
“The transaction has also featured a ground-breaking financing structure incorporating elements of bank and institutional debt in a truly global financier group.”
Value: $11.1 billion.
Area: Banking and finance.
Key players: The HSF team was led by partners Miles Wadley and Erin Wyeth, who were supported by lead senior associates Nadine Kilpatrick and Joseph Varghese, as well as senior associates Jennifer Brightling and Tessa Spence and solicitors Luke Kavanagh, Jana Mavroidakos and Andrew Evans.
Deal significance: “The North East Link PPP is the largest package of works in the North East Link Program, the biggest transport project undertaken to date in Victoria. It completes the ring road around Melbourne that connects the Metropolitan ring road (M80) and Eastern Freeway (M3),” HSF said.
“The PPP component features twin three-lane tunnels, of approximately six and a half kilometres in length, associated tunnel systems, intelligent transport systems, tolling infrastructure, and associated infrastructure.”
Mr Wadley said: “The North East Link PPP is a market-changing transaction. The bankability of an ITC PPP model has long been hypothesised but never realised until now. We are proud to be at the forefront of shaping the market in this way. We know of other projects in the pipeline that are following suit.
“We congratulate the Spark Consortium, including Capella Capital, John Laing, WeBuild, GS Engineering and Construction, CPB Contractors, China Construction Oceania, Ventia, DIF and Pacific Partnerships and their financiers on another transformational transaction.”
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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