Appetite for roads strong: Transurban
Transurban believes the private sector is still willing to dip into its pockets to help fund multibillion-dollar roadways despite the litany of failed private-public toll road projects in recent years.
In making the case, it pointed to its agreement for the "basic funding" as part of its unsolicited proposal to build an eight-kilometre toll road between the F3 and M2 roads in northern Sydney. The construction costs of the new motorway link total $2.65 billion.
"Projects such as this demonstrate the ability of the private sector to bring capital to the table to address major infrastructure projects," chairman Lindsay Maxstead told shareholders on Thursday.
Transurban used its annual meeting in Melbourne to release a paper examining the funding models and options that governments could use to tap capital.
"A misconception has emerged in recent times that risk appetites for infrastructure development projects within the private sector have reduced to the point where patronage risk must be removed before the projects can attract private capital," Mr Maxstead said. "This is simply not true."
While it did not take part in the recent sales process for Brisbane's failed Clem7 tunnel, Transurban has indicated it is interested in buying the Cross City Tunnel under Sydney's CBD, which was placed in receivership last month.