INFRASTRUCTURE PARTNERSHIPS AUSTRALIA CASE STUDIES

Project Name and Location: Telstra Stadium, Sydney Olympic Park, Sydney Project Values: Infrastructure Value $465 million D&C component with a further $70 million worth of construction post-Olympic Games Financing Value $615 million Long-term debt of $125m; Sub-debt of $18m; Equity of $40m Employment Levels During construction it peaked at 2000 jobs on site at one time At the operational phase, it is 500 people when near capacity

Sponsors/developers: Project Leaders Construction Govt Agency Term & Construction Debt Major Underwriters Operator Designer Multiplex & Hambros Multiplex Olympic Coordination Authority (OCA) ANZ Bank Deutsche Bank, ANZ, Macquarie, Hambros Ogden IFC Bligh/Voller/Lobb & H.O.K

Infrastructure Description: Stadium Australia, as it was then known, seated 118,000 spectators during the 2000 Sydney Olympic Games and now seats 83,500 people in post-Olympic mode. In response to the NSW Governments call for tenders for a BOOT scheme, the financial managers of the Stadium Consortium devised the innovative scheme of providing 30,000 more seats than briefed and selling these seats as fully-underwritten 30,000 gold memberships in the Stadium with tickets to every Olympic event at the Stadium.

This financing brought sufficient funds to the project to make it world class and enabled the project to be delivered with a minimum contribution from the NSW Government. The Stadiums ongoing seating arrangement includes an innovative lower-tier of seating which can be reconfigured according to the requirements of particular events (ie: the varying dimensions of rugby league versus AFL). Operation Description: Consortium had to provide an operator as part of its tender with the capacity to operate all aspects of the business except during the Olympic Games. A major maintenance program needed to be agreed with the Government as a condition of the lease. Over $140 million will be provided over the life of the lease for major maintenance. The Stadium is to be handed back to the Government in good condition in 30 years. Financial Description: Funds came from: Equity Sale of 10,000 gold membership (underwritten by major banks) Sponsor equity from Commercial Providers Term debt and some sub-debt Government funding

Process: Design, construct, operate, maintain and finance based on a 30-year lease from the NSW Government. Approval mechanisms processes required Development Approval by the NSW Department of Planning Creation of land held by the Olympic Coordination Authority, which was created by special legislation (now held by the Sydney Olympic Park Authority) Compliance with Environmental Guidelines for the Sydney Olympic Games Timeframes: EOI/Tender Period Financial Close/Public Float Construction commences Operation commences All of 1995. Preferred proponent announced September 1996 September 1996 March 1999

Economic/Social Impact and Benefits: Provision of critical infrastructure required to host the Olympic Games Provided Greater Sydney with a world-class sporting arena in its geographic heart Continues to provide economic benefits to the State Virtually Australias homeground for all its major international sporting codes, except cricket

Summary of Outcomes: Successful construction program allowed the Stadium to open six months early and 18 months ahead of the Olympic Games and thus ensured its full testing After some initial post-opening trading difficulties, it now generates a good profit Its reconfiguration was successfully completed in time for the 2003 Rugby Wold Cup and it continued to trade during the reconfiguration stages It is one of the few stadiums in the world to be able to reconfigure to suit different codes The good cooperation between the private sector and Government continued well after completion of the contract Testimonials: The Stadium has won over 15 major engineering and construction awards, including the prestigious British Construction Industry Award and the Australian Construction Achievement Award 2000. It was also recognised by the International Olympic Committee as the best ever Olympic Stadium. Photos: