NSW State Election 2015: What it means for the infrastructure sector
By Eve Hollole, Swati Johri
In the lead up to the NSW state election, one of NSW Premier Mike Baird’s key platforms was to use the proceeds from the sale of the State’s electricity distribution network on a $20 billion infrastructure program. Now that the Baird government has been re-elected, what can the infrastructure sector expect for the remainder of 2015 and heading into 2016/2017?
$300 million to be spent over 10 years, focusing on 32 corridors on Sydney roads including:
- Parramatta Road from Strathfield to Leichhardt ($22 million)
- Cumberland Highway from Warrick Farm to Northmead ($18 million)
- Hoxton Park Road from West Hoxton to Liverpool ($18 million)
- Devlin Street — Homebush Bay Drive from Ryde to Homebush ($12 million)
- Taren Point Road/Rocky Point Road from Caringbah to Kogarah ($11 million)
- Pennant Hills Road from North Parramatta to M2 ($7 million)
$50 million has been reserved for other strategic pinch point programs across the network, in addition to $100 million over the next 4 years to fast track and expand the NSW Government’s pinch point program across the state. An additional $250m has been reserved for upgrading road infrastructure in the Hunter region.
In addition to its Western Sydney Rail Upgrade Program and Sydney Rapid Transit, the NSW Government has also pledged to use funds raised from the long term lease of poles and wires to invest in new infrastructure, signaling and power supply in Western Sydney, including two additional Western Line Express services between Parramatta and the Sydney CBD.
The NSW Government has also committed $100 million for a Parramatta River ferries package which will include four new ferries, more services, a new wharf at Rhodes, upgrades to existing wharves and a new commuter car parking at Cabarita Wharf.
A number of large projects such as NorthConnex and the Sydney Light Rail project have already closed in 2015, putting NSW ahead of other states for infrastructure procurement. With so many large projects having closed, players in the infrastructure sector are increasingly looking to what is next.
While big infrastructure projects such as WestConnex are already in the frame, the NSW government’s concrete plans to invest further in infrastructure means there should be many more opportunities for investors, contractors and financiers in the years to come.