Downer signs contract for QTMP and est.Green Bank Guarantee

DOWNER SIGNS CONTRACT FOR QUEENSLAND TRAIN MANUFACTURING PROGRAM AND ESTABLISHES AUSTRALIAN-FIRST GREEN SYNDICATED BANK GUARANTEE

Downer EDI Limited (Downer) today announced that it had achieved contractual close on the Queensland Train Manufacturing Program (QTMP), the largest investment in new rollingstock in Queensland history.

Under the contract, which will generate revenue to Downer of approximately $4.6 billion, Downer will:
- Design, manufacture and commission 65 six-car passenger trains, which will be manufactured in Queensland
- Design and build two training simulators
- Design, construct and commission the purpose-built train manufacturing facility at Torbanlea, in the Fraser Coast region
- Design, construct and commission the rail facility (for maintenance and stabling) at Ormeau, in the Gold Coast region
- Maintain the new rollingstock fleet, simulators and the Ormeau maintenance facility for an initial term of 15 years and a maximum term of up to 35 years.

Construction of the manufacturing and maintenance facilities will commence later this year, with all trains expected to be in passenger service by 2032.

The Chief Executive Officer of Downer, Peter Tompkins, said Downer is proud to be part of this project, which supports long-term local manufacturing capability in Queensland and will become one of the critical links for South East Queensland’s public transport system for the 2032 Brisbane Olympic and Paralympic Games.

“Downer has more than 100 years of experience in delivering rollingstock projects in Queensland and our industry-leading engineering and maintenance practices will be applied in the delivery of the next generation of Queensland’s passenger train fleet,” Mr Tompkins said.

“We look forward to working closely with the Department of Transport and Main Roads to deliver this iconic project for the people of Queensland.”


Australian-first green syndicated bank guarantee facility

To support the delivery of the QTMP contract, Downer has successfully established Australia’s first standalone Green Syndicated Bank Guarantee Facility.

The works to be delivered under the QTMP Design, Build and Maintain contract qualify as eligible green assets under the “Clean Transportation” criteria of the Asian Pacific Loan Market Association’s Green Loan Principles (2023). Clean Transportation includes modes of transport, such as electric passenger trains and supporting infrastructure, that advance an economy’s transition to a net zero future.

The facility has been established with the support of Downer’s relationship banks: Commonwealth Bank of Australia; ING Bank; Mizuho Bank; MUFG Bank; and Westpac Banking Corporation.

Mr Tompkins thanked the bank group for their support of the new facility, which reinforces Downer’s strong sustainability credentials and commitment to providing its customers with sustainable products and services supported by green finance.

“This new facility emphasises Downer’s position as a leading provider of sustainable transport services,” Mr Tompkins said. “Downer is uniquely positioned to help our customers achieve their net zero commitments, and we look forward to delivering a number of energy efficiency solutions across the QTMP contract.”

The Green Bank Guarantees will be managed by Downer under the newly established Green Finance Framework. Downer was assisted by Commonwealth Bank of Australia, acting as Sustainability Coordinator in the development of the framework and also engaged DNV to provide a Second Party Opinion confirming the alignment of the new facility to the Green Loan Principles.


Authorised for release by Downer’s Chief Executive Officer, Peter Tompkins.


About Downer
Downer is the leading provider of integrated services in Australia and New Zealand and customers are at the heart of everything it does. It exists to create and sustain the modern environment and its promise is to work closely with its customers to help them succeed, using world-leading insights and solutions to design, build and sustain assets, infrastructure and facilities. For more information visit downergroup.com.


For further information please contact:
Media: Mitchell Dale, General Manager Corporate Affairs +61 448 362 198
Investors: Adam Halmarick, Group Head of Investor Relations +61 413 437 487

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Announcement PDF