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The Sydney International Convention, Exhibition and Entertainment Precinct (SICEEP), located at Sydney’s Darling Harbour, is the largest social infrastructure PPP procurement in New South Wales, and also one of the most complex . The 20 hectare precinct, to be known as Darling Harbour Live, is the largest transformation Darling Harbour has seen in 25 years and will be home to Sydney’s new world-class convention, exhibition and entertainment facilities.
This project is now known as Darling Harbour Live
The precinct will provide contemporary facilities that are unrivalled in Australia and the capacity and flexibility for ‘mega’ conferences and a range of other major events. The precinct will include:
The contract for ICC Sydney is being delivered via a Public Private Partnership (PPP) valued at some $1bn, with the market value of the Hotel and The Haymarket valued at around $1.5bn. The new and expanded ICC, the Hotel and key Public Realm areas are expected to be completed by late 2016.
Established in July 2011 by the incoming NSW government, Infrastructure NSW was handed the task of procuring and delivering this $2.5 billion project. Following the short-listing of three consortia after the Expression of Interest stage, Advisian was appointed as Transaction Manager for the project in January 2012.
The project involved a large and complex scope, multiple contract packages with a range of separate commercial arrangements, and extensive brownfield redevelopment on crowded land bordering Sydney’s CBD and the Darling Harbour foreshore. Development of an acceptable commercial framework, understanding and managing planning risks, and efficient management of the tender were critical elements to the project’s successful procurement.
Advisian appointed a core team, with key experience in PPP projects, to be embedded within the Infrastructure NSW project team, managing all aspects of the procurement process through to Contract Close. Our procurement approach needed to deliver a single solution embodying the ICC Sydney, The Haymarket and the Hotel, whilst addressing the interdependencies between the three major components and their contractual arrangements.
In the context of this ‘three-in-one’ project and a very tight timeframe, Advisian managed the delivery of the following key elements in the procurement process:
In addition to the Transaction Manager role, Advisian also provided an independent strategic cost plan review of the reference design, managed and facilitated the risk management process and continues to provide ongoing Project Management support focussed on the site investigations and interface with utility providers.
Advisian seamlessly integrated into the INSW project team and drew upon both the experience of the team and the depth of the Advisian’s resources and knowledge to rise to the challenges presented by such a large and complex infrastructure project.
The procurement process has set a new standard in terms of process and time-line in NSW, taking some 11 months from RFP publication to Contract Close and just seven months from submission of tenders to Contract Close.
Having reached Contract Close, a foundation has been laid for this key project in the delivery of a great outcome for the NSW Government and the people of NSW. The project is expected to deliver $200 million annually and $5 billion over the PPP concession term in economic benefit to NSW, stemming from increased tourism, international trade, knowledge transfer, and significantly increased social amenity to the residents of Sydney.