New South Wales has finalised the sale of the remaining 49 per cent stage WestConnex, generating more than $11 billion for the state.
The State Government announced Sydney Transport Partners (STP) was the successful bidder with $11.1 billion in sale proceeds for the two 24.5 per cent stakes in WestConnex. In total, the State Government has now received $20.4 billion from the sale of the entire WestConnex project.
NSW Treasurer Dominic Perrottet said the transaction continues the successful asset recycling strategy, which has been the cornerstone of NSW’s record $108.5 billion infrastructure pipeline.
“This sale is part of our prudent, long-term strategy to bolster the State’s finances, while also supporting the NSW economy by investing in job creating projects that will drive our COVID economic recovery.”
The Government launched the sale process for its remaining 49 per cent stake in WestConnex in November 2020.
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The sale was structured as a two-tranche process to maximise competition and achieve the best result for the people of NSW.
Net proceeds from the sale will be invested in the NSW Generations Fund (NGF) – the State’s sovereign wealth fund – as required by legislation – before being used to retire an equivalent amount of debt.
WestConnex is Australia’s largest toll road project and when complete will enable motorists to travel over 50 kilometres from Penrith to the city without hitting a single traffic light. Before the road was constructed motorists could face a trip of up to two hours from Penrith to the Sydney CBD.
In 2018 STP purchased a 51 per cent stake in WestConnex for $9.26 billion.
This money was used to fund the vital M4-M5 Link – the final stage of WestConnex as well as other infrastructure throughout Western Sydney.
“Additionally the project has created tens of thousands of jobs while transforming Sydney’s road network and through our asset recycling approach has allowed us to invest billions back into the State’s future,” Perrottet said.