Clem7 is a PPP toll road in Brisbane. ABC News reports that:
An independent report out today claims RiverCity Motorway is making $870,000 a month but having to pay $8 million a month in interest on its $1.3 billion debt.
RiverCity chief executive officer Flan Cleary says he has not seen the report but he questions the figures.
He says it is too early to say if the group is going broke.
“We’re six weeks into a 45-year concession,” he said.
“Obviously our traffic numbers are disappointing and we’d like them to be a lot higher, but it really is just too early to say where we are.
“We’ve got two years before we have to meet any bank covenants and we’ve also got four and six years before we have to do any refinancing.”
About 24,000 motorists are using the Clem7 each day, but the company had aimed to have about 60,000 drivers using the tunnel at this stage.
As I keep saying, all of the risk with PPPs ultimately ends up with the rate and taxpayer.