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canberra light rail stage 2a

Canberra Light Rail Stage 2A goes ahead – CIMIC-Led JV to deliver the project

Construction Front Team by Construction Front Team
December,2023
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The Canberra Metro consortium secured the contract extension to expand Canberra’s light rail, known as stage 2A. This phase will involve a “catenary free” or wireless section and be part of the existing public-private partnership (PPP) between Canberra Metro and the ACT Government.

Initially contracted for Stage 1, Canberra Metro was responsible for the design, construction, operations, maintenance, and financing of the city’s light rail system, which has been operational since April 2019.

Canberra Light Stage 2A – About the expansion

The upcoming project marks a significant stride towards expanding the light rail network to Woden. As detailed below, Stage 2A will elongate the existing system from Alinga Street to Commonwealth Park. With 1.7km, the extension will run along London Circuit West, establishing three new key stops at Edinburgh Avenue and City South. 

canberra light rail stage 2a map
Canberra Light Rail 2A - The expansion will create 3 new stations (source: act.gov.au)

Light Rail Stage 2A is set to enhance connectivity between the city and the lake, fostering active travel by integrating new cycling and walking infrastructure. Moreover, the project will elevate the urban landscape by introducing several new trees as part of the initiative.

According to the ACT Government, these new stations will facilitate access for individuals commuting to the ANU, residences, and establishments in City West and New Acton.

Related Project and News: 

  • CPB-Ghella-Acciona JV to deliver Suburban Rail Loop in Melbourne (Australia)
  • CPB Contractors selected for upgrades in two RAAF Bases in Western Australia 
  • Transgrid awards two major contracts for HumeLink Transmission Line project in Australia

Canberra Light Stage 2A – Key Features

  • Renewable-Powered Travel: Light rail fleet will incorporate batteries, facilitating wire-free travel between Alinga Street and Commonwealth Park, relying on renewable energy sources.
  • Accessibility for All: The light rail system is designed for everyone, including individuals with varying abilities. It supports wheelchair and pram accessibility and allows active commuters to bring bicycles or scooters aboard.
  • Convenient Service: Services will be available every 5-15 minutes along the extended route, providing enhanced convenience. Light rail vehicles boast three times the capacity of a typical bus, ensuring efficient and spacious travel options.

Canberra Light Stage 2A – Funding and Cost

The Canberra Light Rail Stage 2A initiative receives funding from both the Australian Government and the Australian Capital Territory (ACT) Government. According to the ACT government, the project cost is $577 million, and the contract was awarded via a single-selected procurement process (Contract Augmentation/Variation).

CIMIC Group, which has three companies involved in Canberra Metro – -Pacific Partnerships, CPB Contractors, and UGL, confirmed the private financing contribution for the PPP was obtained by leveraging an innovative green loan, acknowledging the project’s carbon reduction benefits. Notably, Stage 1 operates entirely on 100% renewable electricity.

What is a green loan?

  • A green loan is a specific loan for eco-friendly projects like renewable energy or infrastructure projects with robust sustainability initiatives. 
  • Green loans often come with terms and conditions that require the borrower (e.g. Canberra Consortium) to use the funds for eco-friendly projects and typically involve third-party verification to ensure compliance with predefined environmental criteria or standards.

Canberra Metro - PPP Consortium

Canberra’s Light Rail PPP contract was executed between the ACT Government and the Canberra Metro consortium, with members detailed in the table below.
FunctionResponsible Parties
Design and Construction ContactorCPB Contractors, John Holland as the D&C Contractors
Operations and Maintenance ContractorUGL, John Holland, DB Engineering & Consulting
Light Rail Vehicles (LRVs) SupplierCAF
Equity Funding (SPV)Pacific Partnerships, John Holland, MUFG, Aberdeen Standard Investments
Canberra Light Rail Stage 1 - PPP Framework (source: treasury.act.gov.au)

The PPP arrangement for Stage 1 spans roughly 23 years, encompassing the construction and 20-year operation of the initial light rail network. Upon completion of the contract, ownership of the rail network assets will transition to the ACT Government.

Recent PPP Projects around the world: 

  • Hochtief awarded a Judiciary Center PPP Contract in Frankfurt (Germany) 
  • Infrastructure Ontario closes RFP for Ottawa Hospital PPP – The Civic Campus Redevelopment Project
  • Plenary appointed as the preferred bidder for the Geelong Convention Centre PPP in Australia 
Source: cimic.com.au , canberra-metro.com.au, transport.act.gov.au
Tags: AustraliaAustralian & NZ market newscontract awardPPPrail
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