Port Kembla and Port Botany have been leased for $5.07 billion, the State Government has announced.
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Following a six-month competitive bidding process, the 99-year lease of State-owned port assets Port Botany and Port Kembla has been awarded to the NSW Ports Consortium.
Treasurer Mike Baird said net proceeds of around $4 billion would be invested in the NSW Government’s infrastructure fund – Restart NSW.
“This is an outstanding result for the people of NSW, which has exceeded our expectations,” Mr Baird said.
“It is the largest ever NSW government transaction, in terms of net proceeds.”
He said the transaction had delivered an outstanding financial return for the state, including more than $4.31 billion from the Port Botany transaction package and $760 million from the Port Kembla transaction package.
“This is a massive boost to our delivery of our record infrastructure program across the state,” Mr Baird said.
Net proceeds from the two leases will be invested in the Government’s infrastructure fund, Restart NSW, with 30 per cent of funds reserved for project in regional areas and a further $100 million dedicated for infrastructure projects in the Illawarra.
Mr Baird said: “There are now vital funds for the delivery of WestConnex, Bridges for the Bush, the Pacific Highway and the Princes Highway. The Government has now funded its commitment to WestConnex and there is $100m for spending on new infrastructure projects in the Illawarra region."
NSW Ports Consortium comprises Industry Funds Management, Australian Super, QSuper and Tawreed Investments Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority. QSuper’s investment in Port Botany and Port Kembla will be managed by Global Infrastructure Partners.