Bank of China contributes $2.54 million USD to the $61 million USD medium term debt service reserve facility tranche of a $3.203 billion USD syndicated loan for the North East Link Primary Package (Tunnels) Project (Linked to Record ID#95432, #95433, and #95435)

Project narrative

On October 28, 2021, financial close was reached on a deal in which a syndicate of 25 lenders — including the Sydney Branch of Bank of China (BOC) — provided a $3.203 billion USD syndicated loan with Spark North East Link Pty Limited — a special purpose vehicle (SPV) and trustee of the Spark North East Link Trust that is owned by a joint venture of Webuild S.p.A, GS Engineering & Construction, CPB Contractors Pty Ltd (CPB), John Laing Group plc, DIF Infrastructure VI, Pacific Partnerships, and Capella Capital — for the North East Link Primary Package (Tunnels) Project. This loan was divided into four tranches: a $1.362 billion USD short term loan facility tranche with a maturity period of nine years and one month (9.0833 years), a $1.743 billion USD medium term loan facility tranche with a maturity period of 19 years and ten months (19.833 years), a $61 million USD medium term debt service reserve facility tranche with a maturity period of 19 years and ten months (19.833 years), a $37 million USD short term debt service reserve facility tranche with a maturity period of 9 years and one month (9.0833 years). In addition to BOC, the following lenders contributed to this loan: Commonwealth Bank of Australia (CBA), the Hong Kong Branch of DZ Bank AG, KfW IPEX-Bank GmbH, Kookmin Bank Co., Ltd, Nippon Life Insurance Company, the Hong Kong Branch of Natixis, Sumitomo Mitsui Banking Corporation (SMBC), the Australia Branch of Standard Chartered Bank, Korea Development Bank (KDB), the Sydney Branch of United Overseas Bank Limited (UOB), Westpac Banking Corporation, Swiss Reinsurance Company, Just Retirement Group, Hana Financial Investment Co. Ltd, IFM Investors Pty Ltd, Manulife Financial, NH Investment & Securities Co., Ltd., Nonghyup Bank, Samsung Global Infrastructure Professional Investor’s Private Placed Investment Fund No.1, Sun Life Assurance Company of Canada, TD Asset Management Inc. (TDAM), Vantage Infrastructure (UK) Limited, and Mizuho Bank see "Melbourne North East Link (Watsonia-Bulleen Segment) (7KM) PPP" and pg.32 of "North East Link Program: Primary Package (Tunnels) Project Summary"). BOC and 22 of the lenders each contributed $57.70 million USD to the $1.362 billion USD short term loan facility tranche, while Mizuho Bank contributed $57.96 million USD. Record ID#95432 captures BOC's contribution to the $1.362 billion USD tranche. BOC and 22 of the lenders each contributed $72.56 million USD to the $1.743 billion USD medium term loan facility tranche, while Mizuho Bank contributed $74.17 million USD. Record ID#95433 captures BOC's contribution to the $1.743 billion USD tranche. BOC and 22 of the lenders each contributed $2.54 million USD to the $61 million USD medium term debt service reserve facility tranche, while Mizuho Bank contributed $2.60 million USD. Record ID#95434 captures BOC's contribution to the $61 million USD tranche. BOC and 22 of the lenders each contributed $1.54 million USD to the $37 million USD short term debt service reserve facility tranche, while Mizuho Bank contributed $1.57 million USD. Record ID#95434 captures BOC's contribution to the $37 million USD tranche. On October 28, 2021, the State Government of Victoria and the North East Link State Tolling Corporation into a PPP agreement with Spark North East Link Pty Ltd for the North East Link Primary (Tunnels) Package; this PPP, an availability-based PPP with with an Incentivized Target Cost (ITC) regime that applies in respect of costs incurred during the design and construction phase of the project. The North East Link Primary Package was the major component of the North East Link Program, which sought to construct a new north-south roadway segment, the North East Link (NEL) Road, between Watsonia and Bulleen Road, connecting the Metropolitan ring road (M80) to the Eastern Freeway (M3) in Melbourne, Victoria, and completing a ring road around the city. The NEL was expected to host 135,000 vehicles daily. The project was expected to reduce travel time by up to 35 minutes across the project corridor; it would also take up to 15,000 trucks off local roads, reducing travel times for freight and related industries. The NEL Project had a total cost of $11.1 billion AUD ($8.34 billion USD). The Primary Package Project scope under the PPP contract included the construction of twin, three-lane tunnels 6.5 kilometers in length passing under the Banyule Flats and the Yarra River, and the construction of a split interchange at Lower Plenty Road and Manningham Road, an upgrade on the existing interchange South of Bulleen Road to accommodate the tunnel on-ramp, construction of a new interchange west of Thompsons Road to service the new Bulleen Park & Ride and accommodate the tunnel off- and on-ramps, a major upgrade to Greensborough Road, changing it into a tree-lined boulevard, the construction of and upgrade to green land bridges, shared user paths, walking and cycling infrastructure, all to establish a new 34-kilometer long North East Trail network that would link the M80 Ring Road Path with the Main Yarra Trail and Koonung Creek Trail, construction of noise walls, replacement of tree canopy, the construction of ancillary infrastructure for the tunnel and freeway network, including additional power, a Motorway Control Centre, an alternate Motorway Control Centre, tunnel ventilation with an air monitoring system and water treatment facilities, and fire and life safety systems, the development of a project-wide integrated managed motorway system, the delivery and maintenance of Tolling Enabling Infrastructure to support the toll section such as civil infrastructure, conduits, power, technical shelters, communications and gantry and signage footing, and toll customer signs, a preliminary design for Interface Zones, where the North Package and the South Package interfaces with the northern and southern limits of the Primary Package, and a 25-year operational phase, and private sector finance contribution for the project. Originally, the Primary Package Project scope also included the construction of seven kilometers of freeway, but this was moved to secondary packages in November 2020. North East Link State Tolling Corporation, a Victoria state-owned company, was established to collect tolls on the NEL; the toll revenue would go towards defraying the costs of the construction and operation of the NEL. The State Government of Victoria maintained tolling rights. Spark North East Link awarded design and construction (D&C) contracts for project implementation to Webuild S.p.A, GS Engineering & Construction Australia Pty Ltd (GS E&C), CPB Contractors Pty Ltd (CPB), and China Construction Oceania Pty Limited (CCO). Spark North East Link awarded the service contract to Ventia Australia Pty Ltd for operations and maintenance (O&M) of the project. APP Corporation Pty Limited, Arup Australia Projects Pty Ltd and Aurecon Australasia Pty Ltd were jointly appointed by the State Government of Victoria and Spark North East Link to oversee the design and construction. In November 2021, a joint venture of Mott Macdonald and SMEC won a design contract. In April 2022, Spark awarded a design and engineering support services contract to a joint venture of Arcadis and WSP. The project deed specified a date for commercial acceptance of December 29, 2028 and a date for final acceptance of June 29, 2029; the 25-year concession would begin at the earlier of contracted date for commercial acceptance or the actual date of commercial acceptance. Construction began in 2022.