Canberra Metro announced as successful light rail consortium (media release)

This is the media release from Chief Minister Andrew Barr and Capital Metro Minister Simon Corbell, dated 1 Feb 2016

It can be downloaded from here.

The first stage of Canberra’s light rail network will be delivered by a world-class consortium, Canberra Metro, sooner and with a capital cost lower than earlier estimated, ACT Chief Minister Andrew Barr and Minister for Capital Metro Simon Corbell announced today.

Canberra Metro will construct and operate stage one of Canberra’s light rail from Gungahlin to the City. 

“Canberra Metro’s proposal offers an innovative and world-class solution that will deliver better transport for Canberra,” Mr Barr said. “The quality and breadth of the bid responses reflects the stature of this project and the appetite of the international infrastructure community to help redefine our city and further improve its liveability.

“The first stage of Canberra’s light rail network, the corridor from Gungahlin to City, represents a timely investment in a more convenient, efficient, affordable and reliable integrated transport system – a genuine alternative to driving.

Canberra Metro consortium announced as winners of bid to construct Capital Metro light rail in Canberra

The Chief Minister Andrew Barr and Capital Metro Minister Simon Corbell today announced that the consortium Canberra Metro had been awarded the contract to construct and operate Capital Metro Stage One. Thus historic announcement came after several months of negotiations with the two shortlisted consortia.

The two consortia bidding for the contract were Canberra Metro and Activate. Both consortia had multinational expertise in construction and operation of light rail networks, and building light rail vehicles.

• Canberra Metro is comprised of Pacific Partnerships, CPB Contractors, John Holland, Mitsubishi Corporation, Aberdeen Infrastructure Investments, Deutsche Bahn International and CAF.
• Activate is comprised of Downer EDI, Bombardier and Keolis Downer. It operates the new Gold Coast light rail and Melbourne's tram network.
• The contract will deliver 12km of light rail track, 13 stops, 14 light rail vehicles, a depot and 20 years of operation and maintenance.
• The winning bid was $698 million with a variance of 5%
• The project would provide up to $1.2 billion of benefits to the city, including through new jobs
• Light rail construction will conclude by late 2018 
• Capital Metro services will commence operations in early 2019
• A decision on the Russell extension will be made later this year
• Light Rail service would run from 6am to 1am with services every 6 minutes during peak times
• The removal of trees down Northbourne Avenue and the Federal Highway would be staged to minimise the visual impact of the project
• Submissions for the $783 million contract closed last September with the development application for the first stage approved last month.
• There will be initially be 14 light rail vehicle  costing $65 million powered by 100 per cent  renewable energy
• Each light rail vehicle will be able to carry 200 passengers

At the announcement of the awarding of the contract, Simon Corbell said:
"While the final cost will be confirmed when contracts are signed, the capital cost included in the winning bid is $698 million, with a variance of 5 per cent depending on contract negotiations and changes in market conditions between now and contract closure".
"Additionally, Canberra Metro will complete construction in late 2018 and begin operations in early 2019. This is sooner than previous estimates and means less disruption for Canberrans and faster access to the transformational effects of this city changing project," 
"The staged approach will mean that as sections of trees are removed, and replaced with 4m tall plantings, there will only be periods of 3-4 months where each section will be without trees," 

Canberra Liberals Alistair Coe has issued a statement:
The disrespect Andrew Barr and ACT Labor have for Canberrans is disgraceful as the government commits to a light rail tenderer without a mandate, Shadow Minister for Transport Alistair Coe said today.
“Andrew Barr is squandering taxpayers’ money without giving them an opportunity to have a say on how it should be spent,” Mr Coe said.
“Light rail is deeply unpopular in Canberra, but again today we see Andrew Barr is more interested in his own grandeur than providing responsible government for the ACT.
“Serious questions remain about the rate of finance, repayment information, the scope of the works and the government’s contribution to construction.
“Also, the fact that the government plans to begin construction just months before the election demonstrates it doesn’t take democracy seriously.“I again call on the Barr government to do the right thing and delay the light project until after the 2016 Election so Canberrans can decide how their money is spent,” 

ACT Light Rail Media release to local news outlets.

ACT Light Rail Chair Damien Haas is pleased at the announcement of a successful bidder to construct Capital Metro Stage One.

This announcement comes after several months of talks between the Government and the two shortlisted bidders.

Mr Haas said "The cost of $698 million is considerably lower than many had expected, and once the cost of stabling and vehicles is removed, makes the cost per kilometer comparable to other light rail
constructed in Australia recently."

"The competitive bid and the sooner than expected completion date, are compelling reasons to award the tender to this consortium. The sooner we can use light rail, the better".

On the subject of paying for Capital Metro Stage One, Mr Haas said "The $370 million raised from asset sales and the contribution of $60 million from the Federal Government for light rail means that we have over half of the total cost already covered before the first payment is due in 2019".

On the topic of contracts being cancelled if the Liberals won the Assembly election in 2016, Mr Haas said that "In the absence of any compelling public transport policy, I don't think that the electorate
will give Mr Hanson and Mr Coe that opportunity. Their own federal colleagues describe that as 'economic lunacy'." 

"I suggest that anyone who thinks that ripping up contracts is a winning policy, go to the Gold Coast and ask them if they want to shut down their light rail service."

Mr Haas said that ACT Light Rail looks forward to construction beginning in several months.

The Canberra Times reported on the announcement here.
ABC Online reported on the announcement here.

The media release from Andrew Barr and Simon Corbell can be found here.
The media release from greens MLA Shane Rattenbury can be found here.

ABC Canberra TV covered the announcement on 1 Feb 2016

WIN Canberra TV covered the announcement on 1 Feb 2016

ABC Canberra TV covered reaction to the announcement on 2 Feb 2016

ABC Canberra TV held an interview with MLA Alistair Coe discussing the breaking of contracts and sovereign risk concerns on 2 Feb 2016

For more frequent updates on Capital Metro and light rail related news, please visit our Facebook page 'Light Rail for Canberra'. 

Two consortiums selected to bid for Capital Metro light rail

This announcement is in todays Canberra Times here:

(This is slightly edited for clarity, full version at Canberra Times website)

"The ACT government has shortlisted two consortiums to submit detailed bids to build, own and operate Capital Metro.

Canberra Metro, is led by Leighton subsidiary Pacific Partnerships, and includes Mitsubishi and John Hollands, and German firm DB International GmbH.

Activate, is led by Downer EDI, which would design and build, and includes French train-building company Bombardier and Keolis Downer, which operates the new Gold Coast tram and Melbourne's tram network.

The government had "tested their general view and understanding of government's affordability threshold", he said. Consortiums were also asked for a view on the government paying them a lump sum of 50 per cent of debt at the end of construction or at the first refinancing of the project. Mr Corbell did not provide detail of their response on the lump sum, but said consortiums had welcomed that fact that the government had the payment on its radar.

The consortiums had also welcomed the government's willingness to consider the Russell extension, he said.

The two shortlisted groups would now provide detailed design and a bid price, setting out what the tram would cost the territory. The government will pay the winning bidder an annual fee, but has yet to go public on how much it expects that fee to be.

Mr Corbell said "request for proposal" documents would go to the two shortlisted groups in April for the Gungahlin line, and a couple of months later for the Russell extension. 

Mr Corbell said the two successful consortiums were "well-formed", with mature relationships among the companies making up each consortium, and mature financing arrangements, he said. They both understood that the government had "sent a very strong affordability signal" by releasing the business case, and were highly experienced.

"We're dealing with highly experienced, globally experienced companies that have delivered urban rail, including light rail and heavy rail projects in Australia and overseas," he said.

Both were developing relationships with local subcontractors and suppliers, which would be critical in the final bids.

Mr Corbell said the shortlisting was a very significant milestone. "We have met every milestone so far for this project which I'm very proud of, so we are tracking to make a decision on the successful bidder early in 2016 with works under way later in 2016," he said."

It has also been covered on local television news services:

ABC Canberra report on 18 Mar 2015

WIN Canberra report on 18 Mar 2015

For more frequent updates on Capital Metro and light rail related news, please visit our Facebook page 'Light Rail for Canberra'.  

Capital Metro bidders announced on 22 Dec 2014

The ACT Government announced on 22 December 2014 that they received four expressions of interests from consortiums seeking to build and operate the Capital Metro light rail line from Gungahlin to Civic. The project will be financed and built using a PPP model.

In announcing the four bidders that would be competing for the project, Capital Metro Agency Minister Simon Corbell said: 

"I am very pleased by the level of interest shown by these global, nation and local firms. What it shows is great confidence in Canberra, great confidence in the Capital Metro light rail project. It is about delivering infrastructure to our city, creating jobs and opportunity for our city." 

The EOI process opened on 31 October 2014 and closed on 19 December 2014.

The four bidders that submitted EOI's were:

Canberra Metro
ACTIVATE
Connecting Canberra
CANGO

Each of the bidders are consortiums comprised of multiple companies: