Client Agency:
Transport for NSW (formerly Roads and Maritime Services)
Project Description:
The original project, executed in 2003, involved:
- The financing, design, construction, operation and maintenance of a 40 km long, four-lane, dual carriageway motorway between the F5 freeway and the M5 motorway in Prestons and the M2 motorway in West Baulkham Hills, as part of the Sydney Orbital freeway and motorway circuit, and
- The financing, design and construction of associated improvements to surface roads and intersections.
The private sector designed and built the project, and financed the majority of the project costs, with around $360 million of funding support provided by the Commonwealth Government.
For further information on the project, refer to the Transport for NSW website.
Private Sector Partners:
WestLink Motorway consortium, comprising the following:
- Transurban,
- Queensland Investment Corporation, and
- Canada Pension Plan Investment Board.
Project Details:
Original contract value: $1.54 billion (Estimated Capital Cost at the time of contract award)
M7-M12 Integration Project value: $1.7 billion (as at contract award in Feb 2023)
Contract duration: The term of the original contract was 14-Feb-2003 to 14-Feb-2037. This was extended to 30-Jun-2048 as part of the NorthConnex arrangements and further extended to 12-Sept-2051 as part of the M7-M12 Integration Project arrangements.
Operations began: Dec-2005 (eight months ahead of schedule)
Project Variations:
Jan 2015: As part of the funding model for the NorthConnex project, amendments to the existing concession were made including an increase to the heavy vehicle toll multiplier and an extension to the concession end date.
Dec 2022: NSW Government accepted a proposal from the WestLink Motorway consortium under the NSW Unsolicited Proposal process to widen the M7 Motorway and deliver connections to the new M12 Motorway (known collectively as the ‘M7-M12 Integration Project’). Contract close was reached on 21 February 2023.
The M7-M12 Integration Project comprises:
- Westlink M7 Widening: a new lane in each direction within the existing median of the M7 Motorway between the M5 and Richmond Road.
- M7-M12 Interchange: a direct connection between the new toll-free M12 Motorway and the existing Westlink M7 Motorway; and
- M12 Elizabeth Drive Connection: upgrading the existing Elizabeth Drive to facilitate a new connection between the eastern end of the new M12 Motorway, the existing M7 Motorway and the local road network.
The WestLink Motorway consortium will deliver the M7-M12 Integration Project with John Holland as the Design and Construct contractor. Construction is expected to take around three years and be completed in 2026.
The M7-M12 Integration Project is funded by the following:
- increased toll revenue from expected additional traffic flows due to the increased capacity of the widened M7, the construction of the M7-M12 Interchange, and EDC;
- increased toll revenue due to an extension of the existing concession by 3.2 years from 30 June 2048 to 12 September 2051; and
- a NSW Government commitment.
The M7-M12 Integration Project has obtained all relevant planning and environmental approvals which are separate to the unsolicited proposal process.
The level of tolls and the toll escalation regime will not change as a result of the Project, noting that the current regime is based on distance-based tolling, in both directions. The M7 Project Deed specifies the maximum rate that the Companies may charge.
Further information can be found on the Transport for NSW project website.
