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Ferrovial and Plenary win $1.4bn Melbourne road PPP

Netflow, the pair’s joint venture, is in exclusive negotiations with the Victorian government to verify project details as it targets financial close in the coming months.

Netflow, a joint venture between Ferrovial’s Cintra and Plenary Group, has been chosen as the preferred bidder to upgrade and maintain a suburban road network in western Melbourne.

The A$1.8 billion ($1.38 billion; € 1.19 billion) Western Roads Upgrade PPP includes the upgrade and duplication of six suburban arterial roads, construction of two new interchanges and rehabilitation and maintenance of a 700km road network under a 20-year concession, which starts when construction work ends in 2020.

Netflow will work to achieve financial close for the project in the coming months, followed by design and construction works for the availability-based PPP. WBHO Infrastructure will take charge of construction, the Spanish infrastructure firm noted, with subsidiaries Amey and Broadspectrum in charge of maintaining the road network.

“The delivery of the Western Roads Upgrade project will increase capacity on the network and increase driver safety in one of Melbourne’s areas where population growth is expected to increase faster in the coming years,” said Ferrovial.

This marks the first major project awarded to the Cintra-Plenary JV, which was founded in late 2016 with a focus on developing road projects in Australia and New Zealand.

However, this is not their first partnership. Cintra and Plenary previously worked together as part of the Nexus Infrastructure consortium, delivering the A$1.6 billion Toowoomba Second Range Crossing highway project, which is currently under construction after reaching financial close in August 2015.

Cintra currently manages more than A$30 billion of assets including 26 road concessions across Australia, Europe and the Americas, while Plenary develops and manages 42 projects worth more than A$30 billion across Australia and North America.