Transurban has released a statement to its shareholders regarding the NSW government’s announcement it had provided a draft In Principle Agreement (IPA) relating to the state’s efforts at toll reform.
The government expects the agreement to be signed off by the end of the year by concessionaires – including Transurban – who hold the ten privately-owned toll road concessions of Sydney’s 13 toll roads.
If concessionaires sign the IPA it will allow the process the enter the second stage of direct dealing towards toll reform and enable negotiation of a new network-wide pricing method.
“Transurban and its investment partners expect to move to Stage 2 and anticipate continuing our constructive dialogue with the Government so as to facilitate finalisation of the IPA before the end of the year,” Transurban’s statement reads.
“The government has again reiterated its commitment to respecting the value of the contracts.
“Transurban and its investment partners have invested $36 billion in the state’s motorways over two decades which have provided significant liveability and productivity benefits to Sydney.”
Concessionaires and the government entered initial negotiations following the release of the final report of the state’s Toll Review report by Professor Allan Fels and Dr David Cousins.
The report found the toll network to be poorly functioning and likely to cost motorists almost $200 billion over the next 35 years.
Minister for Roads John Graham says the government expects to have the In Principle Agreement signed by December 31, while Treasurer Daniel Mookhey says those who use the roads will remain front of mind in negotiations.
“We have said all along this is about relief and reform for drivers,” Mookhey says.
“Negotiations are on-track. We’ve put an In Principle Agreement to the concessionaires and look forward to continuing negotiations in the new year.
“Motorists across Sydney are getting cost of living relief with our $60 toll cap, while we are moving ahead on sensible, long-term reform.”
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