Aurecon supports winning bid for $10.26 billion TransGrid Lease

High voltage electricity transmission network

05 February 2016 - Aurecon’s advisory nous was key to securing the winning bid for the AUD 10.26 billion TransGrid NSW electricity transmission network lease.

Paul Gleeson, manager of east coast energy services at Aurecon, said the TransGrid transaction is a great example of where Aurecon was able to leverage its expertise as a strategic advisor in the electricity network industry, to assist the Hastings Funds Management and Spark Infrastructure-led consortium’s successful acquisition in late 2015.

“It was exciting working with the consortium; supporting such a landmark Australian transaction, where the successful bidder would become one of the biggest players in the national electricity grid,” Gleeson said.

When it comes to preparing a winning bid, what makes a big impact is a strong technical capability; a creative approach; a deep understanding of the future challenges and opportunities for the sector; and proven knowledge of the assets. Gleeson said this is what Aurecon, as technical and environmental advisor to the consortium, brought to the table in this first part of NSW's electricity network lease.

NSW power asset privatisation

TransGrid is the owner of the largest high-voltage electricity transmission network in Australia. The 99 year lease on TransGrid covers the NSW electricity transmission grid and fibre optic cable networks in the state and the ACT.

TransGrid was the first poles and wires business put on the market as part of the NSW government’s electricity network lease programme.

NSW Electricity Networks, the Australian-led consortium comprising Caisse de dépôt et placement du Québec (CDPQ); Hastings; Tawreed Investments Limited; Wren House Infrastructure; and Spark Infrastructure, was the successful bidder.

The multibillion dollar privatisation of the electricity transmission asset recently gained international recognition when it won the Project Finance International Asia-Pacific Mergers and Acquisitions Deal of the Year Award and the FinanceAsia Mergers and Acquisitions Deal of the Year Award for Australia and New Zealand.

Carl Badenhorst, the technical director who led the delivery of Aurecon’s services, said, “To help understand the asset’s potential and risks, Aurecon provided a range of due diligence advisory services including, technical; asset management and performance; and environmental management. The team also provided strategic advice on future optimisation. This was critical given the importance of greater business efficiency in response to the Australian Energy Regulator setting lower prices for the current regulatory cycle.”

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