Statement regarding CBD and South East Light Rail
3 June 2019
Over the past year, Transport for NSW has been in complex negotiations with the ALTRAC Light Rail consortium and its subcontractors, Alstom, Acciona and Transdev, to try to resolve a number of commercial issues and legal claims.
An agreement has now been reached and Transport for NSW has entered into a revised Public Private Partnership with ALTRAC for the delivery and operation of the CBD and South East Light Rail project.
This puts an end to past disputes and puts the focus of all parties back on delivering the project for the people of NSW.
Under this agreement, there is a cost to Government of up to $576 million over the duration of an extended PPP term to 2036.
ALTRAC’s private sector shareholders will invest substantial additional equity into the project to meet costs.
The Settlement package includes the resolution of over $1.5 billion of legal claims under the Public Private Partnership with ALTRAC.
Separately, Acciona has agreed to withdraw its $1.1 billion legal misrepresentation claim lodged in the Supreme Court of NSW.
In relation to the class action proceedings now managed by the project’s insurers, on 3 June 2019, Transport for NSW withdrew its cross-claims against ALTRAC and Acciona and amended its defence to remove its proportionate liability pleading. This will assist in simplifying the proceedings and to obtain a quicker resolution.
Most importantly, this agreement ensures customers will have access to modern, reliable light rail services as soon as possible.
The agreement includes milestone and incentive payments for light rail services to commence in two stages. It sets out target start dates of December 2019 for the first passenger service between Randwick and Circular Quay, and March 2020 for services between Kingsford and Circular Quay.
