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NWRL OTS PPP Contract Su L\313479723.23 1 Contents Introduction .................................................................................................................................................. 4 1. Introduction ................................................................................................................................ 4 2. History and scope of the North West Rail Link project .......................................................... 4 3. Evaluation criteria and weightings used in tender process .................................................. 9 4. Cost benefit analysis ............................................................................................................... 12 5. Results of the public sector comparator ............................................................................... 12 6. Public interest evaluation ....................................................................................................... 13 7. Risk sharing .............................................................................................................................. 14 8. Participants in the OTS PPP ................................................................................................... 20 9. Contractual structure............................................................................................................... 23 10. Confidentiality and excluded material ................................................................................... 29 11. Auditor General's function ...................................................................................................... 29 12. Contract term and asset transfers ......................................................................................... 30 13. Primary obligations.................................................................................................................. 30 14. Activities of Transport for NSW and OpCo during the construction period...................... 31 15. Service delivery and quality requirements ............................................................................ 33 16. Maintenance ............................................................................................................................. 34 17. Price .......................................................................................................................................... 35 18. Relief events ............................................................................................................................. 38 19. Compensation events .............................................................................................................. 40 20. Modifications and augmentations .......................................................................................... 43 21. Defaults under the OTS Project Deed .................................................................................... 44 22. Termination rights.................................................................................................................... 46 23. Contractual remedies available to the Crown ....................................................................... 49 24. State step-in rights................................................................................................................... 51 25. Transition out provisions ........................................................................................................ 52 26. Transfer of assets by the public sector to the contractor ................................................... 53 27. Change of ownership or control under the OTS Project Deed ........................................... 54 28. Dispute resolution.................................................................................................................... 54 29. Insurance proceeds ................................................................................................................. 56 30. Liabilities, indemnities and/or guarantees given by the Crown .......................................... 56 31. Significant guarantees and undertakings ............................................................................. 58 L\313479723.23 2 Above: North West Rail Link Project Director Mr Rodd Staples; The Premier of NSW the Hon Mike Baird; Minister for Transport the Hon Gladys Berejiklian pictured at a media conference to announce the OTS PPP award. Note: This report is a summary document and should not be relied upon for legal advice. It is not intended for use as a substitute for the actual contracts. L\313479723.23 3 Introduction 1. Introduction This document summarises the main contracts, from a public sector perspective, for the North West Rail Link - Operations, Trains and Systems Public Private Partnership (the OTS PPP ). The OTS PPP is a key component of the North West Rail Link project. This document has been prepared by Transport for NSW in accordance with the public disclosure requirements of the New South Wales Government's August 2012 NSW Public Private Partnerships Guidelines , [and its compliance with these requirements was assessed by the NSW Auditor-General prior to its tabling in Parliament.] This report should not be relied upon for legal advice and is not intended for use as a substitute for the contracts . It is based on the contracts as at 18 September 2014. Subsequent amendments of or additions to these contracts, if any, are not reflected in this document. The defined terms as used throughout this contract summary are provided in a Glossary in Appendix A. 2. History and scope of the North West Rail Link project On 20 June 2012, the NSW Government announced Sydney’s Rail Future, its long term plan to increase capacity on Sydney's heavy rail network so that it could support a growing population and improve the customer experience. The NSW Government committed to deliver the North West Rail Link as the first of the new rapid transit rail services to connect Sydney's global economic corridor with high growth employment and residential centres. The project will help the NSW Government to meet the priorities and objectives of NSW 2021– the Government’s 10 year plan. Development of the North West Rail Link The topic of a north west rail line had been discussed in the public forum since the 1990's, and a variety of proposals and suggestions were advanced across a period of 20 years. In 2005, the NSW Government established the North West and South West Growth Centres to sustainably plan Sydney's growth on its urban edge. The Metropolitan Plan for Sydney, released in 2010, identified the need for 770,000 additional homes in Sydney between 2006 and 2036 to accommodate an extra 1.7 million people. The Metropolitan Plan stated that Sydney's Growth Centres would be supported by major rail projects announced in the Long Term Metropolitan Transport Plan, including the North West and South West Rail Links. In 2008 the then NSW Government had approved a concept plan for a north west rail project which included six new stations, following an environmental assessment into the project. However, it was not until April 2011 that the newly-elected NSW Government established a North West Rail Link project team to fast track the planning, procurement and delivery of the project. The identification of the North West Rail Link project team established the project as a priority rail infrastructure project. L\313479723.23 4 Establishment of the project team was described by the then Premier of NSW Mr Barry O’Farrell as achieving one of the NSW Government’s priority election commitments. At the same time, the NSW Government committed itself to have a tunnel boring machine in the ground by the end of 2014, a commitment that has now been met. The decision to construct the North West Rail Link followed a need to develop better public transport for a region of Sydney that has traditionally had a low standard of public transport. At the same time, reform across the transport portfolio was underway and a new integrated transport authority was being established to coordinate the State’s transport services and to ensure transport projects were built on time and budget. Formation of the new agency, Transport for NSW, signalled a new approach to transport in the State with a renewed focus on the customer. As part of Transport for NSW's new organisational structure, the North West Rail Link became a dedicated project office. Subsequently, the NSW Government established a North West Rail Link Project Advisory Board to oversee management of the project. Above: The North West Rail Link route. Project Objectives The North West Rail Link is a priority project for the NSW Government and the biggest single public transport infrastructure project in Sydney since the Harbour Bridge opened in 1932. It aims to: (a) Ensure customer needs are met through the provision of a safe, high quality, integrated and affordable transport service; (b) Link existing communities and new growth areas in North West Sydney with jobs and services in the Global Economic Corridor (Macquarie Park –Chatswood – North Sydney – CBD – Sydney Airport); (c) Deliver Stage 3 (Rapid Transit System) of Sydney’s Rail Future to improve transport network reliability by facilitating a shift from road to rail for trips to and from the North West and to reduce bus/road congestion and improve amenity in the Sydney CBD; (d) Deliver a transport service that has been informed by engagement with communities
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