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April 12th, 2013 
Peter Nolan
Updated
The New South Wales government will have $4 billion to spend on infrastructure projects after accepting a bid for the long term lease of Port Botany and Port Kembla.
The 99-year lease has been awarded to the NSW Ports Consortium, made up of Australian and international investors led by Industry Funds Management (IFM).
The consortium includes a range of Australian industry superannuation funds and Tawreed Investments, which is a wholly-owned subsidiary of the Abu Dhabi Investment Authority.
The total value of the bid was $5.07 billion.
After debts have been paid off, the Treasurer Mike Baird estimates the state will have net proceeds of $4 billion to be invested into its infrastructure fund, Restart New South Wales.
The Treasurer Mike Baird says it is a great result for the NSW Government.
“Today our $1.8 billion dollar commitment to the West Connex project is funded,” he said.
“There are also vital funds to meet commitments in the Pacific Highway, over $400 million, the Princes Highway, $170 million.”
Mr Baird says it doesn’t solve the state’s financial problems, but it will mean less has to be borrowed for capital works.
“The key to the result today is getting the right competition,” he said.
“In many respects this is the perfect transaction, at the perfect time and the perfect place.”
The chief executive of Industry Funds Management, Brett Himbury, says the deal should also be a win for members of many industry super funds.
“With over 80 per cent ownership by Australian industry superannuation funds, the investment will benefit the superannuation savings of an estimated five million Australians – including more than 1.5 million in NSW,” he noted in a statement.
Topics:
business-economics-and-finance,
sea-transport,
superannuation,
australia,
nsw,
port-botany-2036,
port-kembla-2505
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Source Article from http://www.abc.net.au/news/2013-04-12/nsw-leases-ports-to-industry-super-funds/4626068
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