Western Sydney Airport




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Western Sydney Airport
STATUS

Prospective pipeline

Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.

Credibly proposed

The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).

Preferred bidder announced

A preferred bidder has been selected and is in exclusive negotiations.

Recently closed

Projects that have progressed to contractual close remain on ANZIP for 12 months.

ANZIP is focused only on major infrastructure activity, above the following thresholds:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Announced
VALUE: $5bn AUD
SECTOR: Other transport
JURISDICTION: Commonwealth, NSW
PROCUREMENT APPROACH: Traditional procurement
TYPE: Greenfield

The Western Sydney Airport (WSA) will deliver Sydney a second airport at Badgerys Creek in Sydney's west.

The Federal Government released a revised Airport Plan in 2016 and Key Functional Specifications report in June 2017. These documents will govern the design of the airport.

WSA will be developed by Federal Government-owned Western Sydney Airport Corporation (WSA Co.) in stages in response to passenger demand. Stage 1 will see a single runway airport constructed with capacity for up to 10 million passengers a year. Future stages would include the construction of a second runway and enhanced facilities, however this is not expected until around 2050.

While procurement will be dictated by WSA Co., the Department of Infrastructure and Regional Development (DIRD) anticipates Stage 1 main works will be a single contract, likely to be procured through a traditional two stage Design & Construct contract process. The indicative timeline for procurement of the main works contract is:

- late 2017/early 2018 – Expressions of Interest (EOI) issued
- mid 2018 – Request for Tender (RFT) Issued
- first half 2019 – contract awarded

Stage 1 main works package will involve construction of:

- a 3.7-kilometre runway, aprons, taxiways and other appropriate aviation facilities;
- a terminal with a floor area of up to 90,000 square metres;
- car-parking facilities for around 11,500 cars; and
- onsite roads and utilities.

Construction is scheduled for completion in 2026.

Early enabling works activities, including further geotechnical investigations, site surveying, air & noise monitoring, site decontamination and initial bulk earthworks are expected to be released for tender in 2017.

Various advisory and assurance roles with WSA Co. and DIRD will be tendered throughout the life of the project.

EOIs for a Project Management and Technical Support services contract with DIRD opened in August 2017 and will close on September 1. Shortlisted EOI respondents will then be invited to participate in a limited Request for Tender (RFT) process. The successful tenderer will support DIRD in establishing a project management office, undertaking technical reviews, providing procurement oversight, and undertaking general project management services as required.

WSA Co. was established in August 2017, with Paul O'Sullivan appointed as the Chairman.

Upcoming Consultation

On 1 November 2017 the WSA Conference will be held to explore a range of issues, including opportunities to attract industry to the region, procurement, governance, planning and design.

Project Development

The preferred location for Sydney's second airport was set at Badgerys Creek in 1999 after being touted for decades.

Under the 2002 Sydney (Kingsford Smith) Airport Sale Agreement, Sydney Airport had a Right of First Refusal to develop and operate a second Sydney airport. The Right of First Refusal process began in 2014 and took two years to complete, which involved a consultative phase and a contractual phase. The consultation phase began in September 2014, with Sydney Airport accepting the Federal Government’s invitation to participate in the consultation process.

In December 2016, the Federal Government issued a 'Notice of Intention' (NOI) to Sydney Airport Group - setting out the formal contractual terms for Sydney Airport Group to develop and operate Western Sydney Airport at Badgerys Creek. The NOI comprises detailed legal documents specifying terms for developing and operating the Western Sydney Airport.

In May 2017, Sydney Airport Group announced it would not accept the NOI for WSA. This was followed by an announcement from the Federal Government that it will build WSA, and not offer the private sector the opportunity to develop WSA.

In the event the NOI was accepted, these terms would form the basis of the contract between Sydney Airport Group and the Federal Government. As the NOI was not accepted, the Government had the option to develop the airport itself, or seek out a new partner under similar terms as those offered to Sydney Airport Group.

The Federal Government's delivery of the project will move forward with terms that are consistent with the terms of the NOI.

Western Sydney Airport Corporation (WSA Co.)

The Federal Government announced in the 2017-18 Budget that up to $5.3 billion in equity would be invested into the Government-owned company WSA Co. from FY2017-18 to build the airport. WSA Co is expected to be established in Q1 FY2017-18 . $8.7 million over 10 years from FY2017-18 will be allocated to DIRD and Department of Finance for shareholder oversight of WSA Co.

Supporting Infrastructure

The Federal and New South Wales governments have also jointly committed $3.6 billion towards the Western Sydney Infrastructure Plan to support transport access to the new airport and within the region.

In addition both governments are jointly undertaking the Western Sydney Rail Needs Study which is considering six potential rail links between the WSA and Western Sydney. The Study's final report will be provided to both governments for consideration in the first half of 2017.

In March 2017, it was announced that a consortium led by SNC-Lavalin will develop the Rail Feasibility Design for rail infrastructure on the Western Sydney Airport site.

The Federal Government indicated in the 2017-18 Budget that part of the $10 billion National Rail Program announced could be allocated towards a Western Sydney Airport Rail Link, subject to a proven business case.


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