Render of the Federation Trail overpass at Sayers Road

Netflow achieves financial close on A$1.8b Western Roads Upgrade

Published 20 December 2017

MELBOURNE, AUSTRALIA - Netflow has achieved financial close on the Victorian Government’s A$1.8 billion Western Roads Upgrade project, Victoria’s largest single investment in arterial roads to date.

The project includes eight high-priority road upgrades, road widenings, intersection upgrades, almost 30 kilometres of duplicated road and more than 260 kilometres of road rehabilitation and maintenance across Melbourne’s west.

The Netflow consortium – comprising Cintra and Plenary as joint project sponsors and SPV managers, Plenary as financial arranger, WBHO Infrastructure as design and construction lead, and the Amey and Broadspectrum joint venture as services contractor – is contracted by the Victorian Government to design, build, finance and maintain the project for 23 years.

Netflow Managing Director Phil Dreaver said the project – an availability-style public-private partnership is the first of its kind for an arterial roads project in Australia – is also great news for local industry.

“More than 1,200 job opportunities will be supported over the life of the project, with at least 10 per cent of the total hours worked being carried out by apprentices, trainees and cadets,” Mr Dreaver said.

“We have achieved more than 96 per cent local content on this project, meaning Netflow will invest some A$400 million in the local supply chain.

“Our team of local subcontractors, ACE Contractors, Civilex, Fortunato, Negri Contractors and Winslow will create and retain 600 people through their workforces and supply chains alone. They’ll also invest A$35 million in plant and equipment that increases their capacity to work on major infrastructure projects in the future.

“This project will help to support the rapid population growth in Melbourne’s west and provide less congestion on the roads, it will also create jobs for local workers and invest heavily in the local supply chain.

“We look forward to working in partnership with the Victorian Government to deliver this landmark project.”

In another first, the finance package involves Australia’s first greenfield bond financing for a public-private partnership since the Global Financial Crisis.

It involves 60 per cent senior secured notes provided through US Private Placement (USPP) and 40 per cent via commercial lenders.

The bonds are full-term AUD ‘natural’ bonds with a fixed interest rate.

Plenary Head of Origination Paul Crowe said it was a ground-breaking day for the Australian PPP market.

“Today marks the first long-term bond financing for a greenfield PPP in Australia since the GFC,” Mr Crowe said.

“There was more than A$2 billion of investor interest in this bond financing, underscoring the global investor demand for high quality PPP projects and the innovative approach adopted by the Victorian Government, Plenary and Netflow.”

Mr Crowe said previous long-term cross-border financings have been dominated by North American private placement investors but in this instance, order books attracted investors from across Europe and Asia.

“The long-term PPP bond market has been dormant in Australia for the past decade, resulting in shorter debt terms. This result will reduce the refinancing risk on the project and is a boon for the PPP project bond market in Australia.

“To win the Western Roads Upgrade is a vote of confidence in Plenary and Cintra’s Netflow joint venture, and to have the support of such an impressive line-up of banks and investors is a vote of confidence in the financial solutions Plenary can achieve for governments on major infrastructure projects.”

Bank debt is being provided by leading domestic and international banks Westpac, Bank of China, ICBC and Mizuho.

Equity financing comes from Netflow joint venture partners and project sponsors Cintra (50%) and Plenary (50%), which is in line with Netflow’s goal of investing in, developing and managing major road concession projects.

Work on the Western Roads Upgrade will begin in the first half of 2018.


About Netflow

Netflow is a joint venture between Cintra and Plenary with a focus on road projects in Australia and New Zealand. It brings together two of the largest developers and managers of infrastructure globally to provide competitive offerings for road projects including static and dynamic tolling, user recognition and managed lanes.

Cintra is one of the largest developers and investors in transport infrastructure in the world, managing more than A$30 billion of assets including 26 road concessions across Australia, the US, Canada, Europe and South America. Cintra has delivered technical and financial solutions for some of the world’s largest infrastructure projects, applying cutting-edge technology and design innovation to minimise financing, construction and operational costs. Assets under management include the US$3.6 billion 407 ETR toll road in Toronto, the US$2.6 billion LBJ Express and US$2.1 billion North Tarrant Express managed lanes projects in Texas, and the A$1.6 billion Toowoomba Second Range Crossing.


Christopher Whitefield

Corporate Affairs Manager
+61 3 8888 7754
+61 418 530 806
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