Infrastructure Strategy for Queensland
Published on by Water Network Research, Official research team of The Water Network in Government
The Queensland Government Has Outlined Plans to Reduce Its Debt by Implementing a Series of 50-year Lease Contracts on Existing Infrastructure, Including 16 Industrial Water Pipelines Currently Operated by Bulk Water Supplier
A report published on Tuesday confirmed that the state government has backed down on its previous plans to sell infrastructure assets outright, and instead plans to raise A$37 billion (US$32.8 billion) by leasing a series of ports, water pipelines, and electricity assets.
Capital would flow to the state through upfront payments to be made by lessees, who would then earn a return on the assets covered under each lease. In the case of the SunWater industrial water pipelines, prices are typically negotiated in advance on a commercial basis, and the lessee would be expected to honour existing contractual arrangements.
The plan's implementation depends on whether the Liberal National Party is returned to power in the 2015 elections.
Source: Global Water Intelligence
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