Project

M7-M12 Integration and Delivery

PROJECT STATUS
Under Delivery
M7-M12 Integration and Delivery

M7-M12 Integration and Delivery is a market-led proposal, submitted to the NSW Government by WSO Co – a joint venture comprising Transurban Group, QIC and CPP Investments. The Project integrates with the M12, a new 16km east-west motorway currently being delivered directly by TfNSW to service the Western Sydney International Airport and Western Parkland City growth area.

The project includes three components: 

  • M7 Widening – widening of the M7 Motorway (M7) by constructing an additional northbound and southbound lane in the M7 median, resulting in an increase from two to three lanes in each direction from the M5 Motorway (M5) to Richmond Road;
  • M7-M12 Interchange – construction of a direct motorway-to-motorway connection between the M7 and M12 Motorway (M12); and
  • Elizabeth Drive Connection (EDC) – upgrading the existing Elizabeth Drive to facilitate a new connection between the eastern end of the new M12, the M7 and local road network.

Under the contracts, the Companies will:

  • fund, finance, design, deliver, operate, and maintain the M7 Widening (from 2 lanes each way to 3 lanes each way) between the M5 and Richmond Road;
  • fund, finance, complete design, deliver the M7-M12 Interchange and operate, and maintain most of the M7- M12 Interchange, excluding:
    • a short section of the M12 main carriageway (~425m) and
    • the Elizabeth Drive to M12 westbound onload ramp (~400m long); and
  • complete design and deliver the EDC, with handover to TfNSW at the end of construction

The Concessionaire, WSO Co Pty Ltd (WSO Co) of the M7 Motorway put an unsolicited proposal to the NSW Government in September 2020 to deliver the M7-M12 Interchange as part of a proposed program to widen the M7 Motorway. The ultimate shareholders of WSO Co are Transurban, Queensland Investment Corporation, and the Canadian Pension Plan Investment Board.

Key Dates

Sep 2022 RFT Close
Nov 2022 Preferred Bidder Selection
Feb 2023 Contract Award
Aug 2023 Construction Commencement
2026 Expected Construction Completion

Funding contributions

The funding sources for the Project are as follows:

  • increased toll revenue from expected additional traffic flows due to the increased capacity of the widened M7, the construction of the M7-M12 Interchange, and EDC;
  • increased toll revenue due to an extension of the existing concession by 3.2 years from 30 June 2048 to 12 September 2051; and
  • a NSW Government commitment.

Financing

WSO Co and Westlink Motorway ltd will provide financing for the project via Debt and Equity contributions.

Procurement

Shortlist: D&C Contractor - John Holland & Acciona
Successful Tenderer: John Holland
Procurement note:

Procurement of the Design adn Construct Contractor was coordinated by the WSO Co

PROJECT HISTORY

Aug 2020 The NSW Government announced that the proposal submitted by WSO Co for M7-M12 Integration and Delivery will be progressed to Stage Two of NSW Government's Unsolicited Proposals process.
May 2022 The NSW Government has progressed WSO Co’s unsolicited proposal to the final stage of the NSW Government's Unsolicited Proposals process.
Sep 2022 WSO Co shortlisted John Holland and Acciona for the Design and Construct Contract to deliver the project.
Feb 2023 The Design and Construct contract was formally awarded to John Holland.
Aug 2023 Construction commenced on the Elizabeth Drive and M7-M12 Interchange sections of the project. Construction of the M7 Widening is expected to commence late 2023.
Nov 2023 Federal Government funding was withdrawn from the project following the Independent Strategic Review into the Infrastructure Investment Program.
Dec 2023 Construction commenced on the M7 Widening section of the project.
Jun 2024 The NSW Government allocated an additional $110 million to the project in the 2024-25 NSW Budget, following the Federal Government's withdrawal of funding in November 2023. This confirms that the NSW Government will contribute the full public sector-funded portion of the project, with $127 million allocated in FY2024-25.