China Construction Bank supports Crown Infrastructure Partners in the new funding model securing $400 million for Wellington City Council’s Moa Point Sludge Minimisation Facility

 

China Construction Bank Corporation, New Zealand Branch served as Sustainability Coordinator and co-lender in the Fixed Rate SPV with a 20 year facility through the model enabled by the Infrastructure Funding and Finance Act 2020. The funding structure is split in both Fixed Rate SPV and Floating Rate SPV along with other lenders.

Wellington City Council uses the model enabled by the Infrastructure Funding and Financing Act 2020 (IFF Act), with approval being given to raise up to $400 million to fund the construction of the SMF at Moa Point.

The new facility is a critical piece of infrastructure for Wellington City. It will reduce the volume of sludge produced by up to 80 percent per year, cater for population growth and development.

With the vision of “becoming a world-leading sustainable bank” and traditional strengths in infrastructure, China Construction Bank has been able to be the only bank to provide this innovated 20 year fixed rate facility.

Being part of the Crown Infrastructure Partners financing of the project has enabled the bank to continue its goal of “Contributing and providing diversified solutions to New Zealand’s Infrastructure” and further footprint of supporting New Zealand’s goal of net zero emissions by 2050. 

CCBNZ is delighted to be part in financing sustainable public infrastructure in New Zealand, like Sludge Minimisation Facility and assists on Wellington City Council’s carbon emissions target and reducing landfill waste.

 

The Infrastructure Funding and Finance Act 2020

 

The IFF Act enables infrastructure projects to be delivered free of local authorities’ financing constraints. 

The use of the IFF Act has enabled $400m to be raised for the construction of the SMF by a special purpose vehicle (SPV) owned by Crown Infrastructure Partners. The finance raised will stay off Wellington City Council’s balance sheet, providing flexibility to fund other infrastructure and community amenity projects within existing borrowing limits.

The finance raised by the SPV will be repaid through a levy on all properties (excluding protected Māori land) across the city, reflecting that all residents and businesses will benefit from the SMF.

The levy will start being charged in 2024 and is intended to be charged for 30 years, spreading the costs over the life of the new facility.

 

ENDS