Spearheading Australia’s drive to finance its large construction projects via private funding, ABN Amro Holding, a partner in Sydney’s 3.4km long Lane Cove road tunnel JV, has announced that the Lane Cove Tunnel Finance Pty has already secured US$418M in AAA rated bonds for the project.
In partnership with Australian construction giants Leighton Holdings and Transfield Holdings, ABN has also confirmed that it will be continuing to raise bonds through 2004 to fund what is said to be the world’s first toll road funded entirely by bonds. US$351M of 10 year bonds (that can be repaid after 8 years) and a further US$92M of 16.5-17 year bonds have so far been sold. The complete cost for constructing the twin tube tunnel is over US$778M.
Work is scheduled to start next month with completion hoped for early 2007. The tunnel will connect the Gore Hill Freeway with the M2 motorway in Sydney’s north. Australia is witnessing a marked upturn in privately funded construction projects. Some US$4.7bn worth of projects are thought to be being built between now and 2007 including a US$701M road tunnel under Brisbane in Queensland.
