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AustralAsia Railway Corporation annual report 1999/2000



AustralAsia Railway Corporation annual report 1999/2000

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Annual report 1999 - 2000


AustralAsia Railway Corporations


E-Publications; E-Books; PublicationNT; AustralAsia Railway Corporation annual report; Annual Report




Made available via the Publications (Legal Deposit) Act 2004 (NT).




AustralAsia Railway Corporation; Periodicals; Annual report

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AustralAsia Railway Corporation

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AustralAsia Railway Corporation annual report; Annual Report


1999 - 2000

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AustralAsia Railway Corporations



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AustralAsia Railway Corporation Annual Report 5 The year has seen a number of milestones achieved in negotiations with the preferred bidder, the Asia Pacific Transport Consortium, to build, own, operate and transfer back the AustralAsia Railway. On 28 October 1999, Prime Minister John Howard announced the Commonwealth would increase its contribution to the Project from $100 million to $165 million, matching the increased Northern Territory contribution of $165 million, and complemented by an increased contribution of $150 million from South Australia. Of the total Project cost of $1.23 billion, the governments will provide $480 million towards construction works and the Consortium will provide $750 million, as well as accepting all construction and operating risk. A major milestone during the year was approval by the Federal Treasurer on 21 March 2000 of a third party access regime under National Competition requirements of the Trade Practices Act 1974. This arrangement has a 30-year certification period, providing legislative certainty to the Consortium that appropriate returns can be achieved in exchange for its investment in this greenfields project, while conforming to National Competition Policy. On 20 April 2000, 99-year leases were signed between the Corporation and 13 Aboriginal Land Trusts, completing official processes for the provision of title for the corridor. On 18 October 2000 at the Islington railway workshops in Adelaide, the Corporation, the Northern Territory and South Australian Governments, and the members of the Asia Pacific Transport Consortium signed an Agreement on the Commercial Terms for the Project. This signing signified that agreement had been reached between the Corporation and the Consortium on the proposed commercial terms, clearing the way for financial documentation to be finalised between the Consortium and its financiers. At the same ceremony, Prime Minister John Howard and the Corporation signed the Commonwealth Deed of Grant, finalising arrangements for the payment of the Commonwealths $165 million contribution to the Project. With sustained effort on the part of the Consortium, the Corporation and the governments, negotiations and finance arrangements are expected to be completed in December this year, delivering the Project in a time frame comparable with others of its size. To reach this stage in a project of this magnitude has required an enormous amount of cooperation and the AustralAsia Railway Corporation is grateful for the support and goodwill of both governments throughout the negotiation period. In particular, I would like to express the appreciation of the Board to the Chief Minister of the Northern Territory, Mr Denis Burke, and to the Premier of South Australia, Mr John Olsen, for their tireless personal input into the successful outcome of this great project. RICHARD H ALLERT AM Chairman Chairmans Overview 4 I am pleased to present the AustralAsia Railway Corporations 1999/2000 Annual Report. SA Premier John Olsen, Prime Minister John Howard and Chief Minister Denis Burke on the day of the historic railway signing in Adelaide