$1b Darling Harbour redevelopment plans unveiled

The New South Wales Government has unveiled its plans for a $1 billion redevelopment of the 20-hectare precinct around the Sydney Convention Centre in Darling Harbour.

A consortium of four developers has been chosen to build the project, which will stretch from Cockle Bay and Darling Harbour to Ultimo and Haymarket.

Lend Lease, Spotless, AEG Ogden and Capella Capital have joined forces in the consortium, Destination Sydney.

The State Government says the 20-hectare redevelopment will transform a large section of inner Sydney.

The project will include Australia's largest convention and exhibition facilities and a 35-storey hotel with up to 900 rooms.

It will also include a new entertainment venue to replace the Sydney Entertainment Centre and what is being described as a "new urban neighbourhood" in Haymarket.

The Haymarket project will include student accommodation, apartments, retail and other businesses.

Premier Barry O'Farrell says the new precinct will bring the biggest changes to the area in 25 years.

"This is a rebuild of this part of Darling Harbour designed to deliver that economic benefit that we know exists here that needs to be unlocked," he said.

"Because whether it's the 1,600 jobs that will be created over the three-year construction period, whether it's the 4,000 jobs that will then be available on this site, it is about growing the state's economy."

But he will not reveal how much of the cost will be covered by the Government.

"One of the reasons we're not announcing figures today is of course for the next six months there will be detailed negotiations go on to finalise all the contracts," Mr O'Farrell said.

Deputy Premier Andrew Stoner was also on hand for the announcement.

"Along with the Barangaroo development, this represents a once in a generation development of the CBD of Sydney," he said.

The Government hopes construction can start next year and be completed in about three years.

Paul Broad from Infrastructure NSW says a public-private partnership was the right decision for the project.

"Right from the start we did a public sector comparison. So we worked out, if the public sector did this, how much would this cost us, and that set the financial parameters for which the state would contribute," he said.

"Fortunately this project comes in below that and in the first phase of this the private sector takes all the risk for financing and building it."

The Government expects the new convention and exhibition facilities will generate $200 million a year in economic benefit for the state.

Source: ABC News, 11 December 2012