Service-enabling

Infrastructure in

New South Wales Amy Brown | Director

Infrastructure & Structured Finance Unit, NSW Treasury

18 November 2015

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NSW Overview

NSW Population:

7.5 million

+1 million people in next 10 years

Sydney Population:

4.4 million

NSW Gross State

Product:

$476.4 billion

Headquarters for 40% of Australia’s top 500

Australian corporations

CBD home to 22,000 businesses

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A year of milestones

$12.4 billion in projects reaching financial close …

North West Rail Link September 2014

$3.7 billion

WestConnex 1A December 2014

$500 million

Northern Beaches Hospital January 2015

$400 million

NorthConnex January 2015

$3.0 billion

Sydney Light Rail February 2015

$2.1 billion

WestConnex 1B June 2015

$2.7 billion

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NSW’s Targeted Investment Approach

An $88.6b capital investment program …

Poles and Wires $20 b

Public transport

$8.9 b

Water security

$1.0 b

Education

$1.0 b

Health

$1.0 b

Culture & Sport

$1.5 b

Other

$100 m

Urban roads

$2.4 b

Regional transport

$4.1 b

Transport

$38.0 b

Electricity

$7.8 b

Health

$4.5 b

Water

$4.3 b

Housing

$2.5 b

Education

$2.1 b

Other

$9.4 b

FY

2016 -

FY

2019

Tota

l N

SW

Capex

$6

8.6

b

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The NSW Capital Investment Model

Prioritisation Procurement Delivery Operation

Agency INSW Agency or

Projects NSW Agency Treasury + Agency or Projects NSW

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Procurement → Delivery + Procurement

Projects NSW

Centralised support to agencies

in procuring and delivering

projects.

Enhanced Project Assurance

Centralised assurance role for all

major projects within

Infrastructure NSW.

Project

Procurement

Toolbox

Standard

Project Deed

Industry Bid Cost Consultation

PROCUREMENT DELIVERY

0

2

4

6

8

10

Eq

uity

Eq

uity/

Oth

er

FA

s

Ban

ks

Con

tracto

rs

Op

era

tors

Leg

al

Accou

ntin

g

Oth

er

1. Deal complexity

2. Certainty

3. Experience & expertise

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Outcomes

The evolution of the PPP market in New South Wales

INPUTS OUTPUTS

PRESCRIPTIVE INNOVATION

RIGID RISK

ALLOCATION

PRAGMATIC RISK

ALLOCATION

ASSET PPPs OPERATOR/ FULL

SERVICE

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Broad investment focus: Premier’s Priorities

Creating jobs Tackling

childhood obesity

Driving public sector

diversity

Building

infrastructure

Improving

education results

Keeping our

environment clean

Reducing

domestic violence

Protecting our

kids

Faster housing

approvals

Improving service

levels in hospital

Reducing youth

homelessness

Improving

government services

A focus on social outcomes

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2015 and beyond: Emphasis on social outcomes

Roads and transport

$19 billion over the next five years in

roads, $10 billion in public transport

Education

$172 million in FY2016 for major

school projects

Health

$1.4 billion in FY2016. $5 billion over

the next four years

Culture & Sport

$1.6 billion for the Stadia Strategy

Justice

Capital expenditure in the Justice Cluster.

5 projects currently in the pipeline

Social Housing

$550 million in the coming year, coupled

with innovative funding mechanisms

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Upcoming Projects

Sydney Metro City & Southwest $9.6 billion - $11 billion

Final business case: 2016

Parramatta Light Rail $1.5 billion

Route determination and business case currently underway

Newcastle Light Rail TBC - $103 million allocated in 2015-16 budget

Market sounding process ongoing

Integrated Health Partnerships $100 million - $600 million per hospital

First tranche of opportunities expected to go to market in Q1 2016

Stadia Network $1 billion

First tranche of opportunities expected to go to market in Q1 2016

Education TBC

A strong multibillion-dollar project pipeline

Service-enabling

Infrastructure in

New South Wales Amy Brown | Director

Infrastructure & Structured Finance Unit, NSW Treasury

18 November 2015