Badgerys Creek: Heavy-hitters ready to take on second airport if Sydney Airport Group doesn’t

EXCLUSIVE: HEAVY-HITTERS are ready to pounce on the $5 billion-plus Badgerys Airport project if Sydney Airport Group fails to take on the job.

Boss of state-owned Queensland Investment Corporation, Damien Frawley said QIC’s global clients would seriously examine the prospect of gunning for the project.

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INTERSTATE and global heavy-hitters are ready to pounce on the $5 billion-plus Badgerys Airport project if Sydney Airport Group fails to take on the major Western Sydney infrastructure job.

The boss of state-owned Queensland Investment Corporation, Damien Frawley, has told The Daily Telegraph QIC’s global clients would expect it to seriously examine the prospect of gunning for the project.

“Naturally, a piece of ­infrastructure like that would be fairly attractive to infrastructure investors not just domestically but globally as well,” he said.

Sydney Airport’s response to the terms set out by the federal government has been notably lukewarm, with the company saying a material contribution from the Commonwealth is necessary to make it a worthwhile ­investment.

Boss of state-owned Queensland Investment Corporation, Damien Frawley said QIC’s global clients would seriously examine the prospect of gunning for the project.

The government, however, insists it is already putting enough cash into the project through road infrastructure and preparatory work.

The pair are also continuing to quibble over how long Sydney Airport, which has first right of refusal, should be given to consider the terms. But the government has warned that if an answer isn’t provided by mid-May, it will either build the airport itself or take similar terms to ­another private sector party, while strongly indicating it is leaning towards the former.

Mr Frawley said Badgerys Creek appeared to be a solid investment opportunity whether as a greenfields site, or a fully constructed project.

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“I think most infrastructure players in the world would see it as a fairly attractive possibility,” he said.

The QIC chief executive said that if Sydney Airport turned down the federal government’s terms, his organisation would “keep a very close eye on it”. “We represent a bunch of clients around the world who expect that we’d explore it,” he said.

QIC manages more than $75 billion in funds and has managed $7 billion worth of infrastructure assets.

An artists impression of Badgerys Airport.

The Queensland government-owned corporation also has a 25 per cent interest in both Brisbane Airport Corporation and the North Western Roads Group.

Mr Frawley said QIC constantly watched major infrastructure projects, such as Badgerys.

“We look at all those things and we either rule them out pretty quickly or we explore them further,” he said. “We don’t rule those things out.”

QIC also recently led the consortium that successfully secured the Port of Melbourne lease.

Meanwhile, Brisbane Airport Corporation yesterday did not rule out looking into the Badgerys Creek airport when asked about it, saying only that it did not want to speculate on Sydney Airport’s intentions.

BAC is currently tackling the construction of a $1.35 billion new parallel runway.

The government has insisted it is already putting enough money into the project. Picture: Phillip Rogers

Urban Infrastructure Minister Paul Fletcher last week gave the strongest indication yet that the government is keen to crack on with the multibillion-dollar Badgerys Creek project if Sydney Airport turns it down.

“If Sydney Airport Group accepts, it will build and operate Western Sydney Airport,” he said at the time.

“If not, the government is prepared to do it ourselves.”

He has also flagged the fact the government does not intend to give Sydney Airport the nine months it argues it is entitled to, saying the company is substantially familiar with the terms and should only get until mid-May to make a decision.

His stance has been backed by Labor’s infrastructure spokesman, Anthony ­Albanese.

ACCC chair Rod Sims, meanwhile, has said customers would be the big winners if an entity other than Sydney Airport took carriage of the new facility, given it would likely result in lower parking prices and a better overall ­experience.