Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund manager, has acquired a 24.9-per cent stake in the public-private partnership (PPP) contract for the trains, systems, operations, and maintenance of Sydney Metro, an Australian public transport project.

Other investors in the A$150-million ($101 million) deal include MTR Corp Ltd, Marubeni Corp, Plenary Group, and CIMIC Group Ltd, according to an announcement. The Sydney Metro is Australia’s biggest public transport project covering both the North West and City & Southwest Lines.

The Metro North West Line opened in May 2019 with 13 stations in Sydney’s North West. It is being extended into the Sydney city centre and beyond to Bankstown by 2024, when Sydney will have 31 metro stations and a stand-alone 66-kilometer metro railway.

The Sydney Metro is a transformative project for the city and for thousands of people who look to public transport for fast and efficient travel each day, according to Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.

“This transit system will expand sustainable mobility in the region and contribute to the transition toward a low-carbon economy by compounding the benefits of mass transit, electrification, and energy from renewable sources,” he added.

The investment is aligned with CDPQ’s strategy to invest in high-quality infrastructure assets, alongside partners with deep understanding of the market and vast operation experience, Jaclot said.

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In addition to its investment in Sydney Metro, CDPQ acquired earlier this year a minority stake in private hospital operator Healthscope. In 2016, the pension fund manager collaborated with the founders of Greenstone to acquire a 44-per cent interest in this leading Australian insurance distributor.

It also holds a 22.5-per cent stake in TransGrid, the electricity transmission network of the State of New South Wales and the Australian Capital Territory, and 26.7 percent of the Port of Brisbane. CDPQ held CA$326.7 billion in net assets as of June 30, 2019. – ©