The NSW goverment will pick up more than $7 billion from the long-term lease of Endeavour Energy.
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The electricity provider services the Illawarra and South Coast.
The successful bidder was a consortium Advance Energy, made up of Macquarie Infrastructure & Real Assets and AMP Capital from Australia.
It also includes Canada’s British Columbia Investment Management Corporation and The Qatar Investment Authority.
NSW Premier Gladys Berejiklian said the two Australian companies make up 55 per cent of the consortium.
The 99-year lease of Endeavour Energy will bring in $7.624 billion and form part of the government’s $20 billion Rebuilding NSW fund which includes the previously leased electricity networks.
“This is another outstanding outcome for NSW,” Ms Berejiklian said.
“We now have $20 billion secured to go towards the new schools, hospitals, roads, rail and cultural institutions across NSW.”
Shadow treasurer and Minister for the Illawarra Ryan Park said some of that money was “squandered” on large-scale projects like the Westconnex road system.
“It’s one thing to crow about the amount of money going in but the reality is for that to make any difference it has to go into infrastructure and not be blown on cost blow-outs,” Mr Park said.
He was also worried about the effect the lease would have on people’s energy bills.
“I am concerned that privatisation of these electricity assets will lead to higher electricity prices,” he said.
“That’s problematic for both Illawarra families and Illawarra businesses.”
The NSW Government will retain a 49.6 per cent interest in Endeavour Energy.
