Cross City Tunnel banks write down investments Source: SYDNEY, Jan 2 AAP Published: January 02 2007, 06:18AM
Sydney's Cross City Tunnel could be worth less than $560 million following reports the banks that backed the project have begun writing down their investments.
The owners of the $800 million east-west tunnel -- Cheung Kong Infrastructure, Belfinger Berger and public-service superannuation funds -- have effectively written off their $200-million plus investment, The Australian Financial Review reports.
Deutsche Bank and and Westpac Banking Corporation last week appointed receivers KordaMentha to operate the toll road on behalf of 16 domestic and foreign lenders after less than 18 months of operation, during which the motorway failed to attract the projected 90,000 vehicles a day, instead recording about 30,000 vehicles. advertisement
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The bank syndicate is waiting for KordaMentha to make a recommendation on whether it should maintain existing toll levels.
The appointment of receivers places pressure on the NSW government as it faces an election in March, following months of controversy last year over road closures, high tolls and a lack of disclosure of a $100-million advance payment by the consortium.
The state government has also been accused of potentially exposing taxpayers to compensation claims for reversing road changes without the consent of the tunnel company.
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