Treasurer Mike Baird today announced the NSW Government has successfully refinanced the Sydney Desalination Plant for $2.3 billion, a result which is well above the book value.

 

The proceeds will be used to repay the debt held against the asset, with net proceeds of more than $300 million to be invested in the NSW Government’s infrastructure fund – Restart NSW.

 

Mr Baird said the NSW Government has accepted a binding offer to refinance the desalination plant from a consortium including the Ontario Teachers’ Pension Plan Board, Hastings managed infrastructure funds Utilities Trust of Australia and The Infrastructure Fund.

 

“The selection of the consortium for the long term lease of the Sydney Desalination Plant is a great outcome for the people of NSW,” said Mr Baird.

 

As part of the transaction, Sydney Water has entered into a 50 year water supply agreement with SDP. Prices in this agreement are regulated by IPART.