Factsheet: Delivering an airport for Western Sydney

The Australian Government has confirmed that the site for Western Sydney's airport will be Badgerys Creek. The development of an airport is a major, complex and long-term infrastructure project that will deliver jobs and economic growth for Western Sydney. Detailed planning is underway and it is anticipated the proposed airport could be operational by the mid-2020s.

In progressing this transformational project, the Australian Government will meet its obligations under the Right of First Refusal, a condition of the 2002 Sydney (Kingsford Smith) Airport Sale Agreement.

The Right of First Refusal

As part of the Government sale of Sydney (Kingsford Smith) Airport in 2002, the purchaser was provided with the opportunity to develop and operate a second major airport in the Sydney region, within 100 kilometres of the Sydney GPO. This right was included in the sale agreement due to the uncertainty at the time over the development of a second airport. The sale agreement also details the process and timeframes associated with the Right of First Refusal.

Badgerys Creek is located approximately 56 kilometres from the Sydney GPO and as such the provisions of the Right of First Refusal under the 2002 Sale Agreement are applicable. Sydney Airport Group has the right to this opportunity.

A phased approach

The Right of First Refusal consists of a number of phases, including a consultative phase and a contractual phase.

The first phase consisted of a nine-month consultation between the Australian Government and Sydney Airport Group, which concluded on 30 June 2015. The Australian Government will now consider options for an airport proposal to meet Sydney's aviation capacity needs and deliver the best possible outcomes for the people of Western Sydney and the nation—including economic growth and job creation

The Government may then enter a contractual phase, which would involve issuing a Notice of Intention to Sydney Airport Group. The Notice of Intention would set out the detailed terms for the development and operation of an airport at Badgerys Creek, including technical specifications, contractual terms and timetable.

Sydney Airport Group would then have the opportunity to exercise its option to develop and operate the proposed airport at Badgerys Creek. Should Sydney Airport Group decline the opportunity, the Australian Government may approach the market, or choose to develop and/or operate the airport itself.