Bank of China contributes $45 million AUD to the $1.5 billion AUD term loan tranche of a $3.5 billion AUD syndicated loan for the WestConnex M5 Project

Project narrative

On November 20, 2015, financial close was reached on a deal in which a syndicate of 12 lenders — including the Bank of China (BOC) — entered into a $3.500 billion AUD ($2.5198 billion USD) syndicated loan agreement with WCX M5 Finco Pty Ltd — a special purpose vehicle — for the WestConnex M5 Public-Private Partnership (PPP) Project. This loan was divided into two tranches: a $1.500 billion AUD ($1.07991 billion USD) term loan tranche with a maturity period of seven years and a maturity date of November 20, 2022 and a $2.000 billion AUD ($1.43988 billion USD) concessional loan tranche with a maturity period of 19 years and a maturity date of November 20, 2034 provided exclusively by the Government of Australia. In addition to the debt, the Government of Australia provided a $1.500 billion AUD ($1.07991 billion USD) grant and the Government of New South Wales provided a $1.800 billion AUD ($1.2959 billion USD) grant for the project BOC contributed $45.00 million AUD ($32.40 million USD) to the $1.5 billion AUD term loan tranche. In addition to BOC, the following lenders contributed the respective amounts to the tranche: Commonwealth Bank of Australia (CBA) ($251.25 million AUD; $180.89 million USD), National Australia Bank Limited (NAB) ($251.25 million AUD), Westpac Banking Corporation ($251.25 million AUD), Crédit Agricole Group ($251.25 million AUD), AustralianSuper Pty Ltd. ($100.00 million AUD; $71.99 million USD), Hua Nan Commercial Bank (HNCB) ($75.00 million AUD; $54.00 million USD), Korea Development Bank (KDB) ($65.00 million AUD; $46.80 million USD), First Commercial Bank ($60.00 million AUD; $43.20 million USD), Crédit Industriel et Commercial (CIC) ($50.00 million AUD; $36.00 million USD), Hana Financial Group ($50.00 million AUD; $36.00 million USD), and Sumitomo Mitsui Banking Corporation (SMBC) ($50.00 million AUD). CBA, Crédit Agricole, NAB, and Westpac served as mandated lead arrangers. The proceeds of this loan were to be used by the borrower for the second phase of the WestConnex motorway, which sought to construct a tolled two-line twin nine-kilometer long tunnel from the existing M5 East corridor at Beverly Hills to St Peters, improving access to the Sydney Airport, south Sydney, and Port Botany, as well as motorway to motorway connections to the King Georges Road Interchange Upgrade at Beverly Hills and a new interchange at St Peters. Later known as the M8 motorway, the M8 doubled the capacity of the M5 East Tunnel, saving motorists approximately 30 minutes when going from southwest Sydney to the southern central business district; it also had connections for future projects such as the M4-M5 Link Tunnels (WestConnex Stage 3A), Sydney Gateway, and the M6 motorway. As part of construction, new habitant ponds for green and golden bell frogs were designed and constructed on Eve Street. The CPB Dragados Samsung Joint Venture (CDS JV) (CPB Contractors, Dragados S.A., and Samsung) was the main contractor responsible for project implementation. Aurecon and Jacobs worked in a design joint venture to provide engineering design services and construction services for CDS JV and owner and operator Transurban and Transport for NSW. Renzo Tonin & Associates served as lead acoustic, noise, and vibration consultant and provided modelling, assessment, and mitigation design and monitoring services. Acoem provided VICONOX tunnel atmosphere monitors and CROSSFLOW air flow monitors for use in the tunnels. Lightmoves Pty Ltd. was responsible for lighting installations work. ACOM Group was responsible for installation and commissioning of many assets including high-voltage relay testing, CCTV cameras, the PA system, axial fans, pump rooms, hydrant and deluge system, the integrated speed and lane use sign, and other assets. SICE was responsible for to provide its operations management and control system, communication data networks, master programmable logic control systems, CCTV management system, video wall, phone management systems, and over height vehicle detection systems. Sculptform won a supply and install contract for the ventilation facility facade and for the veil at the entrance of the tunnel. Civiltrak Sydney was contracted by the CDS JV for exacvation works, testing of materials, loading and disposing of materials, and handling of contaminated materials. Quickway Constructions Pty Ltd was responsible to construct the concrete substructure and superstructure at the new SPI Cut & Cover Tunnel and concrete paving works at Kingsgrove. The CDB JV contracted ResourceCo to dispose of tunnel spoil, shale, and sandstone from the project. Golder provided geotechnical, design, modeing, monitoring, and temporary works service for the project. Construction was due to start in the middle of 2016 and to be completed by the end of 2019. The Government of New South Wales approved the project in April 2016. The M8 motorway opened on July 5, 2020. This project, as part of the wider WestConnex project, faced significant opposition from the public on environmental grounds, with several protests outside relevant government offices. Of the 12,000 submissions from the public to the Government of New South Wales, 99% were reportedly opposed. Activists disrupted work through sit-ins at structures to be demolished and work sites, leading to arrests by police. Significant grievances included the introduction of tolls on the toll-less roads M4 and M5, creating fees for users of those roads who would not necessarily use the M8. Activists heavily lobbied to Australian MPs, including Sydney MP Anthony Albanese, to oppose the project to mixed success.