Megaprojects - KPMG

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In the United Kingdom, the government unveiled
its Energy Bill in November which set out a
roadmap for the UK’s switch to a low-carbon
economy. The Bill, which aims to move the UK
from a dependence on fossil fuels to a more
diverse mix of energy sources (including wind,
nuclear and biomass) also includes key reforms
to the electricity market such as the inclusion of
Contracts for Difference (CfDs) mechanisms. It is
anticipated that a new government-owned entity
will act as a single counterparty to the CfDs with
eligible generators. The UK is also continuing to
push ahead with a number of impressive and
potentially transformative megaprojects in the
transportation sector such as London’s CrossRail
(see page 48) and HS2 which will pick up from
where HS1 left off and drive high speed rail
service into the middle and the north of the
country.
For its part, Australia is in the midst of a
resurgence of infrastructure delivery with a
range of new projects either being planned or
executed across a variety of sectors. A
proposed high speed rail line will move ahead
across the east coast connecting Brisbane to
Melbourne. On the west coast, the Oakajee Port
and Rail project is nearing its scheduled
completion date, while a similar scheme for an
intermodal transport terminal at Moorebank (on
the outskirts of Sydney) also gained approval
from the Commonwealth Government. Urban
renewal and mass transit projects are also
being either considered or undertaken in
various parts of the country. Infrastructure
Australia has developed ports and freight
strategies with the objective of improving
supply chain efficiency for business, including
the resources sector, while a number of states
are either assessing or delivering major
transport projects focused on easing
congestion in major cities.
In South Africa, the keenly-pursued
metro rolling stock replacement
program of PRASA has announced
the preferred bidder/manufacturer.
This replacement of rolling stock is
one of the world’s largest new
metro fleet programs in many
decades and – at around USD17-20
billion over the next
20 years – has been one of the most
contested infrastructure projects
around the globe.
In the UAE, the Great Ormond
Street Hospital for Children (GOSH)
has announced plans to work with
a US healthcare provider to
operate a children’s hospital in
Dubai by way of a joint venture.
The project will represent the first
major expansion for the GOSH into
international markets.
In Indonesia, PT SMI (a
state-owned enterprise tasked
with accelerating infrastructure
development in the country) is
looking into the feasibility of
developing a rail line between the
Soekarno-Hatta International
Airport and the city center of
Jakarta, some 30 kilometers to
the east.
India continues to roll out its infrastructure
investment strategy with the development of a
new high speed rail project that will connect
Mumbai and Ahmedabad along a 423 kilometer
route with trains capable of traveling at 300-350
kilometers per hour. While India currently boasts
one of the world’s largest rail networks, the
project will be the country’s first high speed rail
line. The Government of Goa, a State located in
Western India and a top destination for
international and domestic vacationers, will also
enhance its global connectivity by building
India’s second largest greenfield airport.
UK
INDIA
Energy Bill: BBC News, Departments of Energy and Climate Change Energy Bill, Energy Bill to Create ‘Low Carbon Economy’, 29 November 2012; London’s Crossrail:
Transport for London Project Information, Crossrail, 2012; High Speed 2: Project Information, Investing in Britain’s Future, January 2012
High Speed Rail: Rail.co, Indian Government Fast Tracks High Speed Rail Plan, 2 August 2012; Goa Greenfield Airport: Business Standard, Goa Government to Invite Global
Bids for Mopa Airport in September, 24 June 2012
INDONESIA Rail Line: Jakarta Globe, Soekarno-Hatta to Jakarta Rail Line Attracts Global Investors, 21 September 2012
AUSTRALIA
High Speed Rail: Transport Business International, High Speed Rail in Australia: A Close Reality, November 2012; Oakajee Port and Rail Project: Project Information, Welcome
to Oakajee Port and Rail, November 2012; Intermodal Transport Terminal Moorebank: Department of Finance and Deregulation, Moorebank Intermodal Terminal Project,
April 2012
SOUTH AFRICA Metro Rolling Stock Replacement Program: South Africa.info, Intensified Efforts to Invest in Rolling Stock, 7 December 2012