📋 Tender Overview
ScopeIn august 2018 the nsw government awarded sydney transport partners stp consortium a 51 per cent ownership stake in sydney motorway corporation smc which was the nsw government-owned entity established to deliver westconnex. The transaction delivered 9.3 billion in revenue for the government of which 7 billion was used as seed funding for the nsw generations fund ngf the states sovereign wealth fund.In march 2020 nsw government announced a scoping study to assess the future ownership of the states remaining 49 per cent ownership in westconnex. The study would examine whether retaining the governments current stake or raising further capital for new infrastructure funding through divestment of its westconnex equity would be more beneficial.In november 2020 nsw government confirmed it will proceed with the transaction of its remaining 49 per cent stake in the westconnex motorway following the completion of the scoping study.In late november 2020 the nsw government commenced the two-tranche divestment process for its remaining 49 per cent stake. The sale has been split in two with the stated aim of delivering a more competitive process. The registration of interest process for tranche 1 representing a 24.5 per cent stake opened in late november and will be followed by an expression of interest phase. The formal procurement process is expected to begin in the second quarter of 2021.Under the terms of their acquisition of the first 51 per cent stake back in 2018 stp has the right of first offer for any of the remaining 49 per cent and will be able to submit an offer for tranche one alongside other bidders. A capital commitment fee will be offered by the nsw government to compensate the underbidder in tranche one for participating in the transaction and funding a binding bid. This will be subject to conditions including regulatory approvals.The nsw government has not publicly revealed the process or timing of the tranche two process the sale of the remaining 24.5 per cent. They have indicated it may be sold to stp or could go through a subsequent competitive tender process where other interseted parties will be invited to bid. Proceeds from both transactions will be invested into the nsw generations fund.Further informationSmc consists of three wholly-owned entities to deliver each stage of the three stages of westconnex. Each entity is responsible forHolding the long-term toll concession for each stageDelivering the works packages of each component andRaising limited-recourse debt to supplement equity investment to finance construction. Westconnex comprises three major corridorsStage one widening and extension of the m4 motorway completed in july 2019Stage two an extension of the m5 motorway to st peters completed in july 2020 andStage three a new m4-m5 link between haberfield and st peters due to open by the end of 2023. The 16.8 billion westcon
