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Sat September 25 2021

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Leighton wins NZ mega motorway contract

4 Dec 13 Leighton’s Wellington Gateway Partnership (WGP) has been selected by the New Zealand Transport Agency (NZTA) as the preferred proponent to deliver the NZ$1bn (£401m) Transmission Gully motorway.

The work will be carried out under an availability-based public-private partnership (PPP) arrangement. WGP includes partners Leighton Contractors, HEB Construction, InfraRed Capital Partners, Bank of Tokyo-Mitsubishi UFJ (BTMU) and the New Zealand Accident Compensation Corporation (ACC).

The value to Leighton Contractors is expected to be in excess of NZ$800m.

Leighton Holdings chief executive officer Hamish Tyrwhitt said: “The selection demonstrates NZTA’s confidence in our major project experience underpinned by financial strength and the right technical resources.”

Leighton Contractors managing director Craig Laslett said: “The WGP team brings together the local and international expertise and experience required to deliver this challenging project. We look forward to continuing our partnership with NZTA after successfully delivering projects including the Northern Gateway Toll Road and Newmarket Viaduct replacement project.”

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The Transmission Gully PPP Project includes the design and construction of a 27km-long expressway-standard motorway just north of Wellington, with a 25-year operations and maintenance contract. The new motorway will bypass the existing coastal route, increase road safety and improve network reliability with high levels of seismic resilience. Transmission Gully will also be a catalyst for economic growth in the Wellington region. A key component of the project is the design and delivery of 29 bridges, a number of complex interchanges and the movement of more than 6 million m3 of earth.

Leighton Contractors will be the special purpose vehicle manager for WGP, take a majority role in the design and construct subcontract with JV partner HEB Construction, and perform 100% of the operations and maintenance subcontract.

Equity investors in the project are Leighton Contractors (10%), InfraRed and ACC. BTMU is financial advisor. NZTA and WGP will work together to achieve financial close by mid-2014. Preparatory work will start in the third quarter 2014 with the aim of having the Transmission Gully highway open for traffic by 2020.

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