Northway, a consortium whose shareholders are Aberdeen Investments and Spanish infrastructure firm Acciona, has reached financial close with NZ Transport Agency Waka Kotahi (NZTA) for the Warkworth to Te Hana road project.
The Warkworth to Te Hana project is a section of Ara Tūhono, which forms part of the Northland Corridor.
“This marks the successful completion of the procurement process and enables delivery of New Zealand’s largest public private partnership (PPP) infrastructure project,” said Aberdeen.
“The total overall project cost is approximately NZ$3.649 billion (US$2.14 billion) net present value (NPV) during its 32-year construction and operating duration. This includes a nominal cost of around NZ$3 billion (US$1.74 billion) to design and build the road.
“The milestone represents a major step forward in 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.
“Northway brings together Acciona’s global infrastructure delivery capability and UK asset manager Aberdeen’s long-term infrastructure investment expertise through a collaborative PPP focused on whole-of-life performance, innovation and value for money.”
Project highlights include:
- 26km of four-lane motorway.
- Three grade-separated interchanges.
- Twin-bore tunnels exceeding 1km in length.
- 15 bridges and major structures.
- More than 10 million m³ of earthworks.
Bill Haughey, Partner, Concession Infrastructure Aberdeen Investments, said: “The Northland Corridor Warkworth to Te Hana – Ara Tūhono project demonstrates the value of long-term investment partnerships in delivering essential infrastructure.
“Aberdeen Investments is committed to investing in high-quality infrastructure that generates sustainable long-term value while delivering meaningful benefits for communities. We are pleased to be partnering with NZTA and Acciona on a project of national significance and look forward to supporting its successful delivery and operation over the long term.”
José Angel Andrés López, Acciona’s Managing Director Construction for Australia and New Zealand, said: “Acciona invests in, develops and operates infrastructure assets that create lasting value for communities.
“We are proud to bring together local capability and international expertise to deliver this transformational project for New Zealand providing long-term benefits through improved connectivity, economic growth and enhanced transport outcomes.”
Derek Robertson, NZTA’s Northland Corridor Programme Director, said: “The project is a key connector and of strategic importance to the regional and national economy and it is good to see this work get underway.”
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 NZTA.
Acciona will undertake the design, construction, maintenance and operation of the corridor, drawing on its 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,” said Aberdeen.
Haughey added: “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.”