KPMG: Economic contribution of Sydney's toll roads

Economic contribution of Sydney's toll roads

Report prepared for Transurban Limited

May 2021

www.kpmg.com.au

ECONOMIC CONTRIBUTION OF SYDNEY'S TOLL ROADS REPORT PREPARED FOR TRANSURBAN LIMITED

Important notice

If you are a party other than Transurban, KPMG owes you no duty (whether in contract or in tort or under statute or otherwise) with respect to or in connection with the attached report or any part thereof; and will have no liability to you for any loss or damage suffered or costs incurred by you or any other person arising out of or in connection with the provision to you of the attached report or any part thereof, however the loss or damage is caused, including, but not limited to, as a result of negligence.

If you are a party other than Transurban and you choose to rely upon the attached report or any part thereof, you do so entirely at your own risk.

Limitations

The responsibility for determining the adequacy or otherwise of our terms of reference is that of Transurban.

The services provided under our engagement letter ('Services') have not been undertaken in accordance with any auditing, review or assurance standards. Any reference to 'audit' and 'review', throughout this report, is not intended to convey that the Services have been conducted in accordance with any auditing, review or assurance standards. Further, as our scope of work does not constitute an audit or review in accordance with any auditing, review or assurance standards, our work will not necessarily disclose all matters that may be of interest to Transurban or reveal errors and irregularities, if any, in the underlying information.

In preparing this report, we have had access to information provided by Transurban and publicly available information. We have relied upon the truth, accuracy and completeness of any information provided or made available to us in connection with the Services without independently verifying it.

Any findings or recommendations contained within this report are based upon our reasonable professional judgement based on the information that is available from the sources indicated. Should the project elements, external factors and assumptions change then the findings and recommendations contained in this report may no longer be appropriate. Accordingly, we do not confirm, underwrite or guarantee that the outcomes referred to in this report will be achieved.

We do not make any statement as to whether any forecasts or projections will be achieved, or whether the assumptions and data underlying any such prospective financial information are accurate, complete or reasonable. We will not warrant or guarantee the achievement of any such forecasts or projections. There will usually be differences between forecast or projected and actual results, because events and circumstances frequently do not occur as expected or predicted, and those differences may be material.

Our reporting date corresponds with a period of significant volatility in global financial markets and widespread macro-economic uncertainty. In light of the emergence and spread of COVID-19, this volatility and uncertainty could persist for some time. The assumptions set out in our report will need to be reviewed and revised to reflect any changes which emerge as a result of COVID-19. As a result of the continued uncertainty in relation to the impact of COVID-19, our work may not have identified, or reliably quantified the impact of, all such uncertainties and implications. If the assumptions provided by Transurban on which this report is based are subsequently shown to be incorrect or incomplete, this could have the effect of changing the findings set out in this report and these changes could be material. We are under no obligation to amend our report for any subsequent event or new information.

© 2021 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Document Classification: KPMG Confidential

ECONOMIC CONTRIBUTION OF SYDNEY'S TOLL ROADS REPORT PREPARED FOR TRANSURBAN LIMITED

Executive Summary

© 2021 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Document Classification: KPMG Confidential

Contents

1.	Introduction	1
2.	Context and background	3
3.	Economic modelling	8
4.	Economic benefits	10
5. Wider economic benefits	23
6.	Economic impact	26
7.	Summary of results	29
Appendix 1: The KPMG-REG model	33
Appendix 2: Note to Readers	36
Appendix 3: Glossary	37
Appendix 4: Lists	39

© 2021 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

May 2021

Document Classification: KPMG Public