The Australian Government has formally issued a ‘Notice to Consult’ to the Sydney Airport Group.
Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said the ‘Notice to Consult’ will provide for the Australian Government and Sydney Airport Group to enter formal discussions on developing and operating an airport at Badgerys Creek.
Under the 2002 Sydney (Kingsford-Smith) Airport Sale Agreement, the owners of Sydney Airport have a ‘Right of First Refusal’, which gives them first opportunity to develop and operate a second major airport within 100 kilometres of Sydney’s centre.
The ‘Notice to Consult’ phase is expected to take nine months.
The government needs to undertake complex and detailed planning towards an operational airport by the mid-2020s. Mr Truss said that while consultation with Sydney Airport Group is just one component of the work currently underway, it is an important step in the process. In addition, detailed work has commenced on a range of other factors, including environmental issues.
The consultation phase, initiated by the issuing of the ‘Notice to Consult’, is the first phase under the Right of First Refusal provisions. It means we now have a clear timeframe for consultation, decision and action.”
Following the consultation, the government may decide to make a contractual offer to the Sydney Airport Group. The contractual offer would involve issuing a ‘Notice of Intention’ to the Sydney Airport Group, setting out the detailed terms for the development and operation of an airport at Badgerys Creek, including technical specifications, contractual terms and timetable.
"Sydney Airport has accepted the Australian Government’s invitation to participate in the consultation process,” Kerrie Mather, CEO of Sydney Airport said.
"Since Badgerys Creek was confirmed in April this year as the site for the Western Sydney airport we have been engaged in preliminary discussions with the Department of Infrastructure and Regional Development. Together with the Department we have begun to map the considerable work that needs to be addressed during the consultation period.
"In addition, to supplement the extensive and global experience we have internally, we have selected a team of external experts to assist us to evaluate the opportunity.
"With the consultation period starting formally on September 30 the work program will focus on detailed examination of the business case including, but not limited to, passenger forecasting, demographics, airport design and operation, planning and commercial development, environmental analysis, and funding and financial modelling.
