Funding for Brisbane's $1.5 billion Legacy Way toll tunnel may be in doubt as Canberra seeks more information about the terms of a deal that could see management of the asset handed to Queensland Investment Corporation.
A spokesman for Federal Minister for Infrastructure and Transport Anthony Albanese said while Lord Mayor Graham Quirk had given the minister a “heads up”, there were concerns about how the deal would impact a funding agreement between Brisbane City Council and the Commonwealth.
The federal government has committed $500 million to help the council fund the major infrastructure project currently under construction and due for completion in March 2015.
Under the deal currently being negotiated between City Hall and QIC, the state-backed superannuation fund managers would take over the management, operations and tolling rights of Legacy Way upon completion via a 50-year lease agreement.
“We're seeking more information because it could potentially change the funding agreement,” Mr Albanese's spokesman said.
Fairfax Media understands questions over who effectively owns the tunnel may be at the heart of the matter.
But Cr Quirk said the lease agreement was designed to keep the tunnel a city asset because of the long-term benefits flowing from the toll infrastructure.
“That's why I'm not going to be seeing this facility sold, it is a lease,” he said.
“It will ultimately come back to the ratepayers and people of Brisbane.”
Cr Quirk said he had already had conversations with Mr Albanese about the project, but more discussions were needed.
He said the negotiations with all parties involved were very much “still ongoing”.
On Tuesday Queensland Motorways CEO Brendan Bourke said the deal was subject to the satisfaction of several key conditions, including a period of due diligence, with the aim being to reach a final agreement on the terms by June.
Queensland Motorways is owned by the State's Defined Benefit Superannuation Fund, which is managed by QIC.
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