Monday 4th December 2017

Client background

The Gold Coast light rail project involved a $1.2 billion 18 year Public Private Partnership (PPP) contract with the Queensland State Government to design, build, finance, operate and maintain a light rail public transportation system.

GoldlinQ Pty Ltd. was contracted by the Queensland Government for the design, construction, operations and maintenance of the Gold Coast light rail system.

How Mazars supported the client

Mazars was engaged by GoldlinQ to develop an operational model for business management, budgeting and reporting purpose and also, for the use by the shareholders. The operational model covered the construction and operational phases of Gold Coast Stage 1 and Stage 2.  More specifically, Mazars role on supporting GoldlinQ included the following:

  • Development of a transparent and user-friendly financial model allowing for detailed scenario analysis;
  • Incorporation of integrity and signal checks, consolidated into a summary section within the Model;
  • Calculations required by the Service Payments section of the Project Deed implemented in the Model;
  • Clear split of timing and layout for actual/historic period data inputs, monthly budget year and quarterly long-term forecasts;
  • The Model contained key tax calculations as advised by GoldlinQ in compliance with the tax advice provided to Mazars by GoldlinQ;
  • The Model included tax related functions to identify the timing of GST, Taxation of Financial Arrangements (TOFA), basic thin capitalisation, off balance sheet considerations including Tax loss credit account and franking;
  • Modelling of values at respective corporate entity levels – Holding Companies, Project Companies, Securitisation Companies and likely expansion projects (i.e. Stage 3);
  • Equity returns calculated for Board reporting purposes, with a focus on distribution and equity valuation using the discounted cash flow method; and,
  • Variance analysis required against the Financial Close Financial Model and year-on-year changes.