International Public Partnerships (INPP) has announced that it has reached financial close on Stage 3 of the Gold Coast Light Rail project. This follow-on investment has arisen through the Company’s existing 30% interest in the Project. The Project extends the existing Gold Coast Light Rail network (known as G:link) a further 6.7 kilometres south from Broadbeach to Burleigh Heads. It will include eight new stations, five additional light rail trams, new bus and light rail connections at Burleigh and Miami, and an upgrade of existing depot and stabling facilities. At completion of Stage 3 in 2025, Queensland’s only light rail system will have a route 27 kilometres long from Helensvale to Burleigh Heads, stopping at 27 stations and serviced by 23 trams. Under the terms of the acquisition, INPP will make an investment totalling approximately AUD13.5m. (c.£7.7m at current exchange rates). Following financial close, INPP will be approximately £173.1m drawn against its £250m corporate debt facility including £16.9m drawn under letter of credit.
Gold Coast G:link – Stages 1 and 2 “a resounding success”
INPP says that Stage 1 and 2 of the Gold Coast G:link light rail system has become a resounding success with more than 60m passenger trips to date. One of the many benefits of the rail system has been an overall increase in public transport use on the Gold Coast with a 43 percent uplift for combined tram and bus use since light rail opened in 2014. INPP says that it will look to support the delivery of the project in line with its Sustainability Policy Aims, with a particular focus on reducing embodied carbon as far as practical. The return profile of the investment is expected to be consistent with the returns being generated by the Company on its existing investment in the Project.
About Gold Coast Light Rail
Gold Coast Light Rail is a public-private-partnership (‘PPP’) between the Queensland Government and GoldlinQ – a consortium of which INPP is a member. The consortium has successfully designed, constructed, financed, operated, and maintained the project since 2011. In addition to private financing, the project received funding from the Federal and Queensland Governments and the City of Gold Coast.
Comments from Mike Gerrard, Chair of INPP
“INPP’s now ten year investment in Gold Coast Light Rail reflects its continued contribution to developing sustainable, reliable modes of transport in one of Australia’s fastest-growing areas. It is also an example of the importance of public-private sector collaboration in delivering outcomes for society. Reaching financial close on the third stage of its development reflects our long-term commitment to the Project, and our confidence in its ability to continue transforming the way people move around the city in line with sustainable goals.”