Northway, a consortium that includes UK asset manager Aberdeen Investments and Madrid-based infrastructure and energy solutions provider Acciona, has reached financial close on the first stage of Northland Expressway, the largest public-private partnership ( PPP ) infrastructure project in New Zealand.
The total overall project cost is approximately NZ$3.649 billion ( US$2.14 billion ) during its 32-year construction and operating duration. This includes a nominal cost of around NZ$3 billion to design and build the motorway.
The milestone represents a major step towards the delivery of a transformational transport corridor that will provide a safer, more resilient and more efficient connection between Auckland and Northland, improving freight efficiency, supporting regional growth and strengthening transport reliability for communities and businesses, according to Aberdeen.
Northway will be responsible for financing, delivering and operating the Northland Corridor Warkworth to Te Hana – Ara Tūhono project under a long-term concession arrangement with the NZ Transport Agency.
Acciona will undertake the design, construction, maintenance and operation of the corridor, drawing on its extensive experience delivering complex transport infrastructure projects in New Zealand and internationally.
The project has been financed through a combination of sponsor equity, senior bank debt and a Crown capital contribution, creating an innovative funding structure designed to deliver value for money while supporting the delivery of nationally significant transport infrastructure, the NTZA says.
The project comprises 26 kilometres of a four-lane motorway, twin-bore tunnels exceeding 1km in length, 15 bridges and major structures, and more than 10 million cubic metres of earthworks.
Bill Haughey, partner and head of infrastructure funds for Australia and New Zealand at Aberdeen, says: “This project exemplifies the value of long-term infrastructure investment, creating lasting benefits for Northland communities while delivering sustainable value for our investors. We are seeing growing interest from global investors in high-quality infrastructure assets that combine strong long-term fundamentals with positive social and economic outcomes, and this project is a compelling example of how private capital can support nationally significant infrastructure while generating shared value for all stakeholders.”
