NSW Government announces scoping study into options for residual stake in WestConnex

08 April 2020

The NSW Government recently announced a scoping study into the future ownership of the State’s 49 per cent stake in WestConnex.

NSW Treasurer Dominic Perrottet said the scoping study would examine whether the Government should retain its stake in the motorway, or seek to utilise the capital to invest in new infrastructure across the State.

“The scoping study will look at all the available options and we will only proceed if there is clear evidence that doing so would be in the best interest of the people of NSW,” Mr Perrottet said.

In September 2018, the Government completed the sale of a 51 per cent stake in Sydney Motorway Corporation (SMC), the entity building WestConnex, which delivered $9.26 billion for NSW taxpayers.

This money was used to fund the vital M4-M5 Link - the final stage of WestConnex - as well as other infrastructure throughout Western Sydney. The Government invested proceeds from the transaction into the NSW Generations Fund (NGF) to benefit future generations. The fund has grown to more than $11 billion.

Mr Perrottet said proceeds from any future transaction would be used to extend the Government’s unprecedented $97.3 billion infrastructure program.

“Our priority is providing the schools, hospitals, roads and rail NSW needs. The Government’s asset recycling strategy has enabled us to do that and create tens of thousands of jobs in the process,” he said.

“The Government's successful asset recycling strategy has seen NSW’s net worth grow from $165.9 billion in 2011 to more than $250.2 billion today – making NSW the first state with a quarter trillion-dollar balance sheet.

“The State’s asset base continues to increase with the State’s physical assets estimated to have a value of $355.9 billion as at 30 June 2019, an increase of $16.1 billion from 30 June 2018.”

 

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Source:  NSW Government - www.treasury.nsw.gov.au

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