2002 Media Releases

CrossCity Motorway, (CCM), today welcomed its formal appointment and will start work immediately on Sydney’s Cross City Tunnel.

CCM, which reached financial close today, consists of Cheung Kong Infrastructure Holdings Ltd (CKI) (50%), DB Capital Partners (30%) and Bilfinger Berger BOT GmbH (20%), the investment company of Bilfinger Berger AG.

Joint sponsors of CCM are Baulderstone Hornibrook and Deutsche Bank Australia.

CCM brings a fresh approach to transport infrastructure in Sydney with demonstrated engineering innovation, world-wide experience and financial strength.

CKI Group Managing Director Mr H L Kam said CKI is very happy to be a partner of CCM, an international consortium consisting of some of the world’s leading infrastructure players.

“Everyone who is part of CCM will ensure this project, one of Sydney’s major thoroughfares, will be a showcase of the State and will make a great contribution to the development of New South Wales,” Mr Kam said.

“For CKI, we will draw our experience in our operation of the Eastern Harbour Crossing in Hong Kong as well as the development and running of about 500km of toll roads and bridges in Mainland China for this important element of the New South Wales road system,” he said.

Baulderstone Hornibrook Chief Executive Mr Liam Forde said innovative design features and engineering techniques would minimise construction impacts and maximise longterm benefits for both residents and motorists.

“Baulderstone Hornibrook will be responsible for design and construction of the project as well as the ongoing operation and maintenance of the completed tunnel,” Mr Forde said. “We are committed to working closely with local communities and other stakeholders during the construction phase and look forward to long term relationships with them as we operate this important community facility.”

Mr Forde said the project would involve an innovative ventilation design to meet NSW Government air quality requirements.

Deutsche Bank Australia CEO Mr Chum Darvall said the CCM team welcomed the opportunity for a long-term involvement in such a significant project.

“The team we have assembled has the depth and world wide experience in financing and equity management of major transport infrastructure to deliver a superior product,” Mr Darvall said.

DB Capital Partners Managing Director Ms Felicity Gates said CrossCity Motorway was an infrastructure project which DB Capital Partners had identified for the long term benefit of superannuants.

“The robust financial structure, innovative technical solutions and long-term management capabilities mean this important transport infrastructure project will help the NSW Government in its objective to improve Sydney’s transport capability,” Ms Gates said.

Bilfinger Berger BOT GmbH Joint Managing Director Mr Gerhard Becher said CCM was a strategic investment that fitted well with their global infrastructure portfolio. He said the Australian infrastructure market was attractive to international investors and he looked forward to a long-term presence.

“Bilfinger Berger is also a world-leader in tunneling technologies, having constructed over 200 tunnels around the world, and we are pleased to bring both advantages to CrossCity Motorway,” he said.

Media Contacts:

CrossCity Motorway Consortium, Steve Brien on 0419 48 1526.
Deutsche Bank, Kate Abrahams on (612) 9258 2416.

Media Note: Please note that the “style” for the consortium is CrossCity Motorway.

Fact Sheet

CrossCity Motorway draws together the strengths of five acknowledged leaders in their respective fields:

• Cheung Kong Infrastructure Holdings Ltd (CKI) is a 50% investor in CrossCity Motorway and is one of the world’s largest infrastructure investors. CKI is the largest diversified infrastructure company listed on the Hong Kong Stock Exchange with a current market capitalization of approximately HK $30 billion and posted an audited consolidated profit of HK $3.3 billion for the year ended December 31, 2001. Over the last two years CKI, together with its associated company Hong Kong Electric Holdings Limited, has directly invested in over A$4 billion of infrastructure assets in Victoria and South Australia. In the toll road sector, CKI currently owns and operates about 500km of toll roads and bridges in Hong Kong and Mainland China. CKI will act as an equity owner in the Project.
• DB Capital Partners will be taking 30 per cent equity in the project on behalf of a number of Australian superannuation funds, including Development Australia Fund. As one of the largest infrastructure fund managers in Australia, DB Capital Partners manages a range of domestic assets including Australian listed equities, direct and indirect property assets, fixed income assets and private equities. They are one of Australia’s leading private equity investment managers with more than $1.5 billion invested in infrastructure and private equity, including a 25% stake in Melbourne Airport.
• Bilfinger Berger AG is Baulderstone Hornibrook’s parent group and is one of Germany’s largest civil engineering companies with operations spanning the world. Bilfinger Berger will take a 20 per cent equity holding in CCM through Bilfinger Berger BOT GmbH, its investment company for concession projects. Bilfinger Berger has a dedicated tunnel division and the group has constructed over 200 tunnels world-wide over a period in excess of 100 years. It has extensive experience in major design and construction projects such as tunnels, motorways, bridges and office buildings. Bilfinger Berger has an annual turnover of more than Eur 4.5 billion, a market capitalization of Eur 940 million as at June 2002 and more than 43,000 employees.
• Tunneling and road building expert Baulderstone Hornibrook, the group who completed the M5 East including its 4km twin tunnels six months ahead of schedule. Some previous projects include the Sydney Opera House, the Anzac Bridge and Melbourne’s Western Link Tollroad. Baulderstone Hornibrook will act as Design and Construction Contractor and Operations Contractor.
• Deutsche Bank Group, one of the world’s largest and most prominent financial institutions with a strong pedigree in major infrastructure and transport projects including the London underground and toll roads in Europe. A market leader in Australian financial markets, Deutsche Bank is one of the largest employers in the financial sector and is uniquely positioned as a key advisor in public and private sector partnerships. Deutsche Bank will act as joint Project Sponsor, Financial Adviser, Debt Arranger and Underwriter, Equity Arranger and Underwriter.