The New Zealand Ministry of Transport has narrowed its competitive bidding process for the development a NZ$6.5 billion ($4.18 billionight rail project in Auckland to two groups, according to a statement from Minister of Transport Phil Twyford.
NZ Infra, a consortium comprising the NZ$43 billion ($27 billion) NZ Super Fund and CDPQ Infra (a wholly owned subsidiary of Caisse de dépôt et placement du Québec), and the NZ Transport Agency are going head-to-head for the Auckland Light Rail Project’s contract.
Twyford said light rail is “a game-changer for Auckland,” as well as “a magnet for private investment in urban renewal.” Upon completion, the system would carry 11,000 commuters per hour — the equivalent of four lanes of motorway.
“What NZ Infra is proposing has never been considered before in New Zealand, based on a public-public investment model,” said Twyford. “This includes co-designing the asset with the Government and its partners, with the majority of financing and risk transferred to NZ Infra.”
He added, “We have to make sure that it will be fit for purpose for generations to come, that’s why we’re taking the time to examine the different proposals in detail and get it right.”
The process will take up to six months, with final selection to be made early next year.
The government is considering two initial routes for the LRT project — the first running between the city and the airport along Dominion Road, and the second between the CBD and Kumeu northwest of the city, following state highway 16, according to InfraPPP.
In May, the NZ Super Fund, New Zealand’s sovereign wealth fund, submitted a proposal to assess the viability of the project for investment.
“We consider the Auckland Light Rail network to be an infrastructure project of sufficient scale and significance to be an attractive prospect for investment,” said Matt Whineray, acting chief executive. “We wish to explore whether a NZ Super Fund–led consortium, leveraging our international relationships, can fund and deliver the project, on a fully commercial basis.”
At that time, the fund had already identified CDPQ Infra, a major Canadian institutional fund manager responsible for developing, building and operating Montreal’s 67-kilometer light rail network, as a potential partner.
According to the super fund, it has NZ$6 billion ($3.8 billion) invested in New Zealand, and CDPQ has C$326.7 billion ($246 billion) in net assets.
