BNZ funds Transmission Gully PPP
BNZ announced today that it has funded New Zealand’s third and most significant public private partnership (PPP) to date. The 27 kilometre, four lane Transmission Gully motorway from MacKays to Linden was highlighted as a road of national significance by the government. The funding will ensure the key piece of public infrastructure will progress with the highway expected to be open for traffic in 2020.
As lead bank to successful bidder, Wellington Gateway Partnership, BNZ has provided 20% of the senior bank debt facility which will be used to construct the motorway. The long-awaited Transmission Gully motorway will be built by Leightons Contractors Pty Limited and HEB Construction Limited, and will be operated by Leightons.
BNZ head of Institutional Banking, Paul Blair says the funding is a landmark transaction for PPPs in New Zealand.
“Well-executed public private partnerships can ensure that large pieces of national infrastructure can be delivered.
“We believe the successful execution of the Transmission Gully project will pave the way to the development of other much-needed public infrastructure which will create jobs, connect cities with ports and production hubs and drive New Zealand’s economic growth.”
BNZ’s involvement in the project continues the bank’s market-leading position financing PPPs. The bank now funds two of the three major PPP’s currently executed in New Zealand.
“We expect our leading capability in infrastructure funding and project finance will be vital for New Zealand as the government sector balances the development of infrastructure critical to growth with the enormous requirements of the Christchurch rebuild, building strengthening in Wellington, and investing in Auckland,” says Mr Blair.