Sydney’s Cross City Tunnel

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INFRASTRUCTURE FINANCE: THE SYDNEY CROSS CITY TUNNEL OPIM-5668 Project Risk and Cost Management Feb 18th, 2011 Sourabhdeep Singh Khanna Hiren Gonsai John Celis Winston Spencer Executive Summary In 2000, Cheung Kong Infrastructure Holdings Limited (CKI) was faced with a great opportunity to invest in a transportation project in Australia. The group was particularly interested in investing in Australia due to the country’s stable regulatory environment and economic growth. This project presented a good chance for the firm to continue with its globalization strategy and achieve its global ambitions in transportation infrastructure project investment. In September 2000, the Australian’s Roads and Traffic Authority…show more content…
A number of "traffic calming" measures were introduced, but this did not solve the problem. In fact those changes created numerous disruptions, increased traffic congestion, and provoked a large number of complaints from road users. The CCT has started to attract significant political attention, negative media and a strong resistance by the community. So what went wrong? It is evident that CKI and its partners need to act quickly and implement a plan that could allow them to get this project back on track and achieve the project goals. Analysis of the Problem In order to determine the best course of action, we need to first understand how we have come to this point and why the project is not providing the expected results. The following questions will help us in our discovery process: 1. What are the merits of having private-sector participation in financing of the Sydney CCT? A privately financed project was a specified from of PPP that involved not only private sector financing but also controlling ownership. PFPs differed. From the outsourcing or construction by the government. There has been widespread adoption by Governments across the world of Public Private Partnerships (PPPs) as a way of providing public infrastructure. Grimsey and Lewis report that the UK version of PPPs,

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