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Transgrid lease unlocks billions for investment in infrastructure

27 November 2015
Billions of dollars have been unlocked for investment in infrastructure projects, following the NSW Government’s lease of high-voltage electricity transmission asset Transgrid.
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The transaction will deliver gross proceeds of $10.258 billion, which will help fund a raft of infrastructure projects across the state as part of the NSW Government’s Rebuilding NSW plan. Some of these projects will focus on improving schools, hospitals, public transport and roads.

The successful Australian-led consortium NSW Electricity Networks, won the bid. The consortium is made up of:

  • Caisse de dépôt et placement du Québec (CDPQ), a Canadian pension fund (24.99 per cent).
  • Hastings, as manager of Utilities Trust of Australia (20.02 per cent).
  • Tawreed Investments Limited, the global direct infrastructure investment vehicle of the Abu Dhabi Investment Authority (19.99 per cent).
  • Wren House Infrastructure, a wholly owned subsidiary of the Kuwait Investment Authority (19.99 per cent).
  • Spark Infrastructure, an ASX listed owner of energy infrastructure and Australian infrastructure manager (15.01 per cent).

The consortium members have a proven track record in the electricity network industry, making them well-placed to operate TransGrid. The consortium has also signed the Electricity Price Guarantee, which confirms total network charges will be lower in 2019 than they were in 2014.

The NSW Government will retain significant influence over TransGrid as lessor, licensor, as safety and reliability regulator and through the planning system. TransGrid will also continue to be regulated by the Australian Energy Regulator, which determines network charges.

The NSW Government is now proceeding with the partial lease of Ausgrid and expects to complete the transaction by mid-2016.

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