RiverCity Motorway

Linking Brisbane Life Investor Briefing - Wednesday 11 June 2008

Peter Hicks, General Manager, Infrastructure Investment, Leighton Contractors

Bowen Hills (northern portal)

Overview

Background
RiverCity Motorway is the concessionaire appointed by BCC to finance, build, design, construct, operate and maintain the $2 billion North-South Bypass Tunnel (NSBT) / Clem Jones tunnel Leighton Contractors sponsored the RiverCity Motorway consortium with ABN AMRO and Bilfinger Berger

Rivercity Motorway was listed on the ASX in August 2006 and Leighton Contractors have committed to an $80m investment at completion

Project Rationale
The NSBT is a 6km river crossing linking Brisbane's busiest roads, bypassing the congested CBD of Australias fastest growing capital city 550,000 Brisbane River crossings per working day Approximately 75% of trips across the river via a CBD bridge* are through trips that are forced through the CBD Through trips will benefit most from the NSBT given its role as a CBD bypass road High proportion of Brisbane River crossings are work related journeys

* CBD bridges are Story Bridge, Captain Cook Bridge, William Jolly Bridge and Victoria Bridge

River crossing capacity

Key Feeder Routes

Lutwyche Rd (65,000 vpd in 2005) Inner City Bypass (65,000 vpd in 2004)

CBD Shaftston Ave (65,000 vpd in 2004)

Ipswich Rd (51,000 vpd in 2005)

Pacific Motorway (106,000 vpd in 2004)

Project Concession & Delivery

Concession period of 45 years from Financial Close Design and construction is being undertaken by an integrated JV between Leighton Contractors (50%) and Baulderstone Hornibrook / Bilfinger Berger Civil (50%) under a fixed time, fixed price contract Contracted completion date of October 2010 - current target completion date is December 2009 RCM will outsource operations and maintenance to Brisbane Motorway Services, owned 50% by Leighton Services and 50% by Bilfinger Berger Services RCM will undertake the tolling and customer service obligations in-house
Vehicle Class Cars Light Commercial Heavy Vehicles Tolls (incl. GST) in 2002$ $3.30 $4.95 $8.75

Key Statistics
10.4km of mainline tunnel excavation 3.5 million tonnes of tunnel excavation including 70% by TBM 35,000 precast lining segments for TBM tunnels Major tunnelling equipment 2 TBMs approximately 12.5 metres 6 Roadheaders Concrete used in the project 285,000 cubic metres Peak workforce 1,200 people

Strong management team

Flan Cleary has been CEO of RiverCity Motorway since October 2006 Flan was the General Manager of Westlink M7 and has over 30 years experience in infrastructure and a proven track record Prior to his role at Westlink, Flan managed the successful commissioning and operation of the Eastern Distributor tollroad in Sydney Adam Hudson has taken over from Tony Spink since April as the Project Director for LBBJV, with Graham Olsson as the Deputy Project Director Adam has over 30 years of construction engineering and project management experience working on a range of technically demanding projects

Construction Update

Construction methodologies on route

Blue
Road Header

Green
TBM

Mainline tunnels
Range of methodologies to suit topography Mainline tunnels to be constructed using two double shield Tunnel Boring Machines (TBMs) 12.4m diameter 77 cutters on cutterhead (315kN). Fast excavation rate Probe drilling min. 1 diameter ahead Conveyor removal of spoil. Tunnel support installation occurs directly behind TBM - Operators protected by shield while pre-cast lining installed Mainline tunnel will be 100% sealed

Design & Construction

Roadheaders used for tunnelling at and near the surface entries to achieve the required cross-sections for the designed lane widths and configurations

In areas of low rock cover, canopy tubes and spilling bars used to reinforce the ground above the tunnel

Tunnel boring machines (TBMs)

TBMs have advanced 1km as they travel south towards Woolloongabba Both TBMs have cleared Brisbane Exhibition Grounds Now excavating rock & placing tunnel lining below Brisbanes Fortitude Valley TBMs on track to be under Brisbane river by Sept 2008 & expected to break through at Kangaroo Point late 2008, then finish journey at Woolloongabba by mid 2009 More than 13,500 concrete tunnel lining segments have been manufactured

Tunnel boring machines (TBMs)

TBMs have advanced 1km as they travel south towards Woolloongabba Both TBMs have cleared Brisbane Exhibition Grounds Now excavating rock & placing tunnel lining below Brisbanes Fortitude Valley TBMs on track to be under Brisbane river by Sept 2008 & expected to break through at Kangaroo Point late 2008, then finish journey at Woolloongabba by mid 2009 More than 13,500 concrete tunnel lining segments have been manufactured

Roadheader tunnelling
Well advanced with 65% of the excavation with roadheader machines now complete Kangaroo Point - 5 roadheader machines have been working 40 metres underground excavating Shafston Avenue on and off ramps and sections of the mainline tunnels, with final line working commencing
Woolloongabba started excavating 900 metres of tunnel digging

section of

northbound and southbound tunnel towards Pacific Motorway

and the southern ventilation tunnel

Bridge Construction
Project remains on target to complete all bridges by end of 2008, with 11 of 18 bridges being constructed at either end of the tunnel already substantially complete New local bridge at Woolloongabba opened at end of May 2008, benefiting local residents and includes 1.5km bike patch New bridge provides residents and businesses with means of traversing Ipswich Road
Advance by TBMs Roadheader excavation No. tunnel lining segments manufactured Bridges substantially complete Surface roads No. people working 1km 225,000m3 13,5000 Activity Progress

11 of 18 43,750m2 (30%) 1,600

Project Risk & Mitigation

Key Risks
Construction / Completion Risks:
Geological risks implications for time, cost and safety Specialised equipment technical & procurement risks Resources / IR Public interface Other Risks materials, MEC, tolling equipment

Equity Risks:
Traffic Tolling strategy

Geological Risks - mitigants

Detailed bore hole testing regime during tender phase BCC data supplemented by LBBJV further investigations Tunnel design reflects underlying geology Primarily Brisbane Tuff overlying rock of the NeranleighFernvale formation Both types of rock are extremely hard Equipment selection purpose-built TBMs Fully tanked (sealed) mainline tunnels

Geological Risks

Equipment risk - mitigants

Early specification and procurement of TBMs Reputable manufacturer - Herrenkeneckt Significant technical support from Herrenkeneckt on the ground Early commencement of roadheader works, multiple faces Comprehensive insurance program

Equipment Selection

Resources & IR
Integrated Joint Venture approach most effective resources from each of the partners are applied Early and professional recruitment program both in Australia and overseas Enterprise Bargaining Agreement ensures workplace harmony Site specific inductions Create safety-first culture extensive education, risk analysis, and independent Safety Management Team

Public Interface
Our Approach: Continue and build upon BCCs extensive consultation No surprises Always available Guests within the community
BCC

Stakeholders RCM JV Partners

Other Risks
Time-critical materials Mechanical & Electrical Tolling System Minor Approvals & Independent Verifier certification Pre-cast tunnel lining segments factory was established early Maximise fit-out during excavation Co-ordinated procurement of tolling equipment & back office Early appointment of IV (preFinancial Close) Co-location of IV, RCM, BCC and LBBJV senior management

Traffic Risk

Traffic risk - mitigants

Limited river crossings in Brisbane Current and increasing need for a CBD by-pass Competent investment-grade forecasts by Maunsells underpin RCMs base traffic case High car dependency among Brisbane residents High congestion on competing routes Significant time travel savings by the NSBT in 2010 High economic and population growth in the NSBT catchment areas

Maunsell
Maunsell is an experienced forecasting team, as demonstrated in the table below:
Toll Road Forecast Measure Client and year of assignment RTA, NSW 1990/91 Transurban 1994 Macquarie 2000 Macquarie 1999 Actual revenue traffic results in 2001 Approx 56,000 19.9 m C$244.1 m 21,210 Difference from forecasts

Average daily M2 Motorway traffic at main toll plaza in 2001 Monthly revenue City Link for October 2001 (all days) Annual revenue 407 Canada 2001 Average daily Storebaelt Bridge, traffic volume Sweden 2001 M7, Sydney Average daily traffic volume, 2002

8% 8% 0.2% 0.0%

Leighton/Macquari Still in ramp up but e Bank / Up to 100,000 exceeding Transurban, ADT in early 2006 forecasts

Traffic congestion in Brisbane 2010

High car dependency among Brisbane residents: 1.52 vehicles per household compared to 1.41 in Sydney c.75% of journeys to work are by car (2001), of which 89% with only one occupant Poor public transport alternatives

Traffic congestion in Brisbane 2010

Brisbane employment distribution 2006

Growth in Brisbane continues to outpace Australia

High population growth Australias fastest growing capital city Forecast to increase by 39% from 1.77 m in 2004 to 2.46 m in 2026 Strong growth among younger age groups relative to other cities Brisbane recorded 2.0% population growth relative to 1.5% for the rest of Australia in the year to September 2007 High economic & employment growth QLD experienced 4.8% growth in gross state product over the 10 years to Jun 07, compared with 3.5% for the rest of Australia QLD experienced employment growth of 3.75% relative to a national average of 2.5% (for 06-07)

TransApex and RCM

Transapex and other road infrastructure in Brisbane continue to meet original forecasts (or earlier): Airport Link concession was awarded in May, with a contracted completion date of mid 2012 (v end 2012) BCC has announced Northern Link will be accelerated to an expected 2014 opening (v 2016)

Key traffic conclusions

Confidence in traffic numbers is supported by: Experience of the Maunsell team Network enhancements Current and increasing need for NSBT in Brisbane Sustained population and employment growth

Tolling

Tolling system
Fully electronic, free-flowing tolling system Tolls in both directions Fully interoperable with Brisbanes Gateway Bridge and Logan Motorway, and every other Australian electronic toll road Over 160,000 QML Gateway electronic tags already in use, with QML moving to free-flow tolling by July 2009 Proven electronic tag and video-based technology Utilised on Gateway Bridge, Logan Motorway, Melbournes CityLink and Westlink M7 RCM plans an aggressive tag marketing campaign as road opening approaches

Progress Update
Development of tolling system back office is taking shape Group has completed the business requirements definition and specified several major interfaces Financial system Vehicle database Address database

The Group is developing a flexible and scalable tolling system back office capable of meeting the requirements of NSBT and future toll roads

RCM is on track to complete tolling system back office in the first quarter of 2009

Conclusions

RiverCity Motorway
Linking Brisbane Life
Detailed risk assesment & risk management regime in place Construction is on-track for early completion RCM management expect tolling back office to be ready prior to expected opening date RCM remains confident of its traffic forecasts given continued high employment and population growth rates