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November 22, 2016

Evolution Rail wins $1.4bn contract for Australia’s HCMT project

Evolution Rail consortium has secured a A$2bn ($1.4bn) contract for Victoria Government's High-Capacity Metro Trains (HCMT) project in Australia.

Evolution Rail consortium has secured a A$2bn ($1.4bn) contract for Victoria Government's High-Capacity Metro Trains (HCMT) project in Australia.

As part of Evolution Rail consortium, Plenary Group will deliver and maintain 65 new high-capacity trains over the next 35 years under the project.

The trains will be built in Victoria over the next six years. The project also includes construction of new maintenance facilities in Pakenham East and Calder Park.

In addition, the consortium also features Downer Group as delivery and maintenance lead, as well as CRRC Changchun Railway Vehicles being in charge of design and technology.

Plenary Group CEO Paul Oppenheim said: “Evolution Rail had moved swiftly from preferred to contractual close over the past few weeks, and will now move to financial close with its partners.

“The efficiency which contract close has been achieved reflects Evolution Rail’s comprehensive bid which in turn, attracted strong support from our debt and equity financiers who have worked alongside the consortium partners at every step.

Evolution Rail’s debt participants will include Westpac, Bank of China, Bank of Communications, HSBC, ICBC, Intesa Sanpaolo, Mizuho Bank and UOB.

"The new trains will increase capacity on the Cranbourne Pakenham line by 42%."

The project will receive equity financing from Plenary (30.1%), Downer (10%), CRRC (10%) and funds managed and advised by global private markets investment manager Partners Group (49.9%).

Oppenheim further added: “Plenary was particularly pleased to achieve the introduction of a new international entrant into the Victorian rolling stock manufacturing market (in CRRC Changchun) through a partnership with Downer that will achieve more than 60% local content in the manufacturing of the new train fleet.”

The first of the new trains is expected to come into service in mid-2019 and together with the A$1.6bn ($1.1bn) Caulfield to Dandenong Level Crossing Removal project, the new trains will increase capacity on the Cranbourne Pakenham line by 42%.

All 65 trains will be ready for the opening of the Metro Tunnel in 2026.


Image: Plenary will deliver and maintain 65 new high-capacity trains over the next 35 years. Photo: © Plenary Group.

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