State of the market

Australia has seen solid infrastructure activity in the past year and, generally speaking, most firms have tried to hire the best experts to capitalise on one of the few areas of growth in the global economic crisis.

One of the more notable examples of this was Herbert Geer's move to significantly boost its construction and infrastructure expertise, following a new agreement with Sydney firm Rivlin Deschamps Kelly (RDK) Lawyers. The move saw three partners with boutique-firm experience join Herbert Geer.

Managing partner Bill Fazio pointed to the federal government's push to develop more hospitals, roads, ports and infrastructure. "The recent Brisbane Airport Link project is an example of the major infrastructure investment taking place on the east coast of Australia. There is huge demand for both social infrastructure and projects for clean power and better use of water resources," he said.

The largest Australian deals included Brisbane Airport Link PPP (A$4.8bn), Oakajee Port and Rail Project (A$3.5bn), Buckland Park Development (A$2bn), Brisbane NSBT Project (A$1.8bn) and Newcastle Coal Infrastructure Finance (A$1.55bn).

New Zealand, on the other hand, has seen infrastructure become a major talking point in the lead up to the country's general election. Bell Gully partner Hugh Kettle said he was confident that a John Key-led National Party would spell more infrastructure activity.

"John Key spoke about plans for introducing PPPs to the New Zealand market, and to remove some of the current constraints on new electricity generation projects. Road and transport projects are likely to be the first to be undertaken under a PPP model," he said.

However, Simpson Grierson partner Kevin Jaffe previously reported a "constant flow" of infrastructure work, pointing to cross-border transactions coming from Australia, China and other parts of Asia. "We are seeing acquisition and disposition work in the forestry, infrastructure and energy sectors. Private equity is falling away but trade buyers have stepped in and we have seen deals in the vicinity of NZ$50m-1bn," he said.

Key has recently won the election and is New Zealand's new prime minister, so it will be interesting to see whether the anticipated spike in infrastructure work will be realised.

MELBOURNE

Melbourne and most of Victoria have seen rail infrastructure and various projects. Some clients were quite insistent that firms should try harder to lower their fees, while adding value to their service. "Money is king at the moment and everybody is conscious about not spending exorbitant amounts," said one client.

Clarendon Lawyers was one of the few Melbourne firms recommended for infrastructure and projects. Director Rebecca Farrell was considered to be one of the "most outstanding" lawyers. Clients found her skills useful, as she is also New York qualified, in her handling of a range of US-related matters.

Herbert Geer provided clear and good advice for a reasonable price. Steven Smith was "very impressive" in his turnaround time.

Arnold Bloch Leibler's Melbourne office was recommended for being very cooperative and its can-do attitude in achieving desired outcomes for clients. Jane Sheridan was singled out for praise.

Mallesons Stephen Jaques was very highly recommended and considered to be even better than other top-tier firms. The firm provided better client service and advice and a more polished end-product. Diana Nicholson was considered to have excelled in her work for major Australian banks and to have a good understanding of commercial drivers. Jeff Clark was also mentioned.

Corrs Chambers Westgarth was also a favourite and long-standing choice. Clients said the firm was responsive, commercial and pragmatic, and understood relatively complex structures, notably in consortiums. Clients also appreciated its willingness to openly discuss legal fees and felt the firm offered good value for money. John Walter and Simon Morris were appreciated for their licensing work and ability to foresee flow-on effects.

Minter Ellison has been increasingly favoured for infrastructure work, mainly because clients feel that its regulatory lawyers are making the difference. The firm produced excellent documents on infrastructure investment and Mark Birrell had a comprehensive understanding of infrastructure, regulatory bodies and overseas trends. Ben Liu had broad expertise and was technically sound and responsive, Richard Murphy tailored his work to meet client needs and was strong in competition aspects, and Fred Tinsley was also mentioned.

Blake Dawson was considered to be professional in its advice that was "high quality, well thought out, commercial and timely". Tiffany Barton was hardworking, even on very difficult transactions with multiple law firms involved that had to be completed in a very limited timeframe.

Allens Arthur Robinson was very knowledgeable, understood infrastructure "back to front" and had a good network of contacts. Clients respected the firm's knowledge, experience and user-friendliness. Emma Warren was commended for her strength in PPPs, Paul Kenny was an "unassuming" professional who did well in complex reform work, and David McLeish and Ted Hill were also named as standouts.

Freehills was often cited for its wide range of lawyers, experience and knowledge of clients' businesses. The firm provided good advice on commercial law relating to infrastructure, even on relatively mundane tasks.

Baden Furphy was excellent, responsive, attentive and commercially minded, providing excellent technical expertise. Josh Sgro was commended for his commercial work and ability to advise on strategic matters, Brendan Quinn had great attention to detail and did things "outside of the square", Jarrod Muller was very hardworking, committed and solutions oriented, and Andrew Clark and Brendan quinn were recommended.

Clayton Utz also had its fair share of infrastructure and major project work in Melbourne. The firm provided broad strategic advice and was considered very good. Bradley Vann was respected as a senior, very experienced strategic adviser, while Marko Misko was considered a top negotiator, particularly for contracts. Naomi Kelly and Michael Tuckfield were also praised.

DLA Phillips Fox was mentioned for its understanding approach towards its clients and fees. The firm provided good service and value for money, and John Gallagher was a "tactical" partner.

Johnson Winter & Slattery's Catie Burdett had technical expertise and was available at all hours.

SYDNEY

Sydney and most of New South Wales have seen quite a mix of work, including health projects and rolling stock.

Herbert Geer was a top pick, offering solid expertise, flexibility, timely service, great savings and just the right amount of servicing to give clients exactly what they are looking for.

Paul Deschamps was very good with strategic matters, strong on dispute resolution, down to earth, easy to talk to and a good communicator with a strong ability to speak layman terms. Chris Kelly was knowledgeable, knew the European markets, was available after midnight and minimised legal costs. In all this, he provided flawless service.

Corrs Chambers Westgarth provided quality service with the right number of lawyers and, in addition, it helped improve business for clients. Shawn Wytenburg and David Warren were very good at understanding various drivers at play, while provided appropriate advice and responses. John McCombe and Ian Laughlin worked seamlessly together, avoided duplication and had good attention to detail. Trevor Dennis had a very good manner and could work hard yet keep cool headed.

Johnson Winter & Slattery was mentioned for its technical competence, timeliness and
"quality of the highest order". People were always available at all hours of the night to provide much needed general corporate and commercial advice. Jim Hunwick did well at handling complicated and relatively "long-winded" financial documents.

Mallesons Stephen Jaques was very disciplined, responsive and offered a wealth of expertise. Scott Gardiner was very commercial and a good strategic negotiator, and quickly identified key commercial issues. Dominic Bortoluzzi was very hardworking, diligent and professional, and came up with innovative solutions. Mark Upfold had a good understanding of regulatory requirements and David Storr was good at handling government project financing. Peter Doyle was mentioned for his technical knowledge.

Baker & McKenzie had good knowledge and was timely in its performance. Clients turned to the firm after having very good experiences with its Asian offices, which provided excellent and consistent documents. Steven Glanz was described as a "black-letter lawyer" who was straightforward. Renee Kok managed PPPs effectively and was on time. Martijn Wilder, David Egan and Howard Fraser went beyond expectations and did a "fantastic job".

DLA Phillips Fox was very cooperative and did well in ensuring all necessary provisions were in place for transactions. David East had a great understanding of infrastructure projects and could provide the general overview that boards required.

Freehills was mentioned for its no-fuss approach to technical aspects. Shaun McGushin was very methodical, Peter Paradise managed matters diligently and provided timely service. Bill Napier, Phillippa Stone and Fiona Gardener-Hill were also singled out for praise.

Clayton Utz had a lot of breadth and depth of expertise. Private clients chose the firm for its large number of specialists, while government clients chose it for its understanding, teamwork, commercial advice and efficiency. Frank Bannon was considered a quiet achiever who produced good results, while John Shirbin, Gary Best and Daina Richmond were efficient and had good knowledge.

Blake Dawson also received good comment. Joanne Evans was considered to be one of the best lawyers in the PPP space and able to run transactions without a large team. Chris Mitchell was very client friendly, practical, pragmatic in advice and adopted a methodical approach for complex issues. Kevin Arkwright was hardworking, meticulous and very diligent.

Minter Ellison has been increasingly favoured for its work on infrastructure and projects. Paul Paxton was very diligent while Ian Briggs was a "specialist" in setting up project alliances.

Allens Arthur Robinson was mentioned for its knowledge and expertise. John Cooper was mentioned for his work in transport, water and resources projects, while Leighton O'Brien showed technical competence and strength in PPPs, and good personality.

Holding Redlich produced desired results and Grant Parker was good at interpreting contracts, identifying potential risks and paying close attention to detail.

Gilbert + Tobin did some project work and was good at developing complex-style projects. Rob McDonnell was mentioned for his regulatory and litigation expertise.

ADELAIDE

Adelaide has seen various projects involving ports and communications platforms.
Norman Waterhouse Lawyers was a popular choice for its commercial and corporate advice.
Peter Fisher was a favourite pick for his depth of expertise and good advice, especially in water, treatment and roads projects. Sean Keenihan and Mary-Alice Paton were also mentioned.

Kelly & Co Lawyers was highly regarded, Jamie Restas being mentioned as very competent, just as good as leading lawyers from larger firms and doing whatever it took to close the deal. Paul Griscti was mentioned as having in-house experience and a good understanding of commercial issues surrounding projects.

Finlaysons' Lee Dewhirst was experienced, crafty and hard nosed as a negotiator. He also ran a "very tight ship".

Thomson Playford Cutlers was recognised for its work across the board. Loretta Reynolds was singled out for praise, particularly for her ability to complete transactions in style. Tony Saint was service oriented and commercial in his advice, while David Beer's diligence, timeliness and accessibility made clients come back to him time and again. Geoff Brennan was technically minded, accessible and good at achieving commercial outcomes.

Minter Ellison's lawyers were considered to be very passionate professionals who love the law. Brett Thorneycroft consistently acted on major infrastructure projects and was dogmatic, hardworking and a client-centric lawyer. 

Johnson Winter & Slattery was technically competent and produced quality work in a tight timeframe. Clients were impressed by the partners' ability to be available at all times. Calm, sensible and proactive, John Keeves gave good technical advice and client service. Phil Laity was very commercial and Paul Turner "extremely" hardworking.

BRISBANE & PERTH

Brisbane has also seen major projects and railway work.  McCullough Robertson was mentioned for its work on smaller yet equally significant projects.  Brad McCosker was commercially minded and a good negotiator,  Tracey Moore was "technically excellent", and Darren White friendly and approachable.

Blake Dawson provided clients with comprehensive service and went to great lengths to explain their advice, especially in due diligence. One client thought the firm could do even better by communicating more with clients. Joanna Jenkins was knowledgeable, practical in her advice and able to identify key issues. Paul Newman had a wealth of experience, very good project management skills, and was good  at quickly creating and managing a team.

In Perth, John Carson was named as being valued. Mallesons Stephen Jaques gave sound and concise advice, was quick to respond and worked to a reasonable timeframe. John Humphrey had a consultative approach that made clients turn to him time and again.

NEW ZEALAND

New Zealand has seen a lot of government-related projects such as highways, local roads and rail.

Kensington Swan was considered to be very professional in keeping to deadlines and in work turnover. Paul Buetow was good at structuring action plans in plain English, had an "excellent" understanding of the market, "great turnaround" and was sensitive to client needs. Duncan Halliwell was good at preparing partnering agreements, Wei-Ling Lim very knowledgeable and Bryan Gundersen highly respected, hardworking and provided good practical and commercial advice. Andrew Skelton was also mentioned.

Simpson Grierson provided good front-end advice, and Kevin Jaffe had great attention to detail and produced results. Michael Weatherall and Graeme Christie were mentioned.

McMahon Butterworth thompson left clients with a positive experience. Clients kept turning to the firm for a range of matters, because of the human touch and ability to work to deadlines. Niamh McMahon was "fantastic and knew her stuff", and Howard Thompson often a "front-line" partner - proactive, multi-skilled and technical in his advice.

Chapman Tripp was very good at handling major road projects and Robert Parker was mentioned.

Till & Clarke barrister Max Till was very good, conservative and gave informed advice. He weighed up all issues at hand and removed emotional aspects from transactions, while showing clients both the benefits and drawbacks of a strategy.

OUTLOOK IS BRIGHT FOR 2009

Recently, the Australian Prime Minister, Kevin Rudd, announced a A$300m boost for community infrastructure and projects. Although some large firms are likely to miss out in the first round of the Federal government's infrastructure spending spree, major infrastructure projects are on the way for 2009.

The government body Infrastructure Australia has a A$20bn pool of  funds and plans to use it to fund major projects starting from February next year.

Mallesons Stephen Jaques partner Geoff Wood believes upcoming projects are likely to include social infrastructure and a freight railway line to transport coal from the Hunter region.

Blake Dawson partner Chris Mitchell agreed that rail links between natural resources and the sea are likely to be upcoming projects. He said that they could occur in Western Australia and Queensland, particularly the Gladstone region.

There is likely to be uranium mining work, Mitchell says, since there is general acquisition interest from China and India. Most mineral reserves have many types of ore and the key deciding factor will be the projected price of that ore for the next 10-15 years. If the price drops, production of that commodity could be unfeasible.

There could also be water projects due to the ongoing drought in most parts of the country. This could include dams, and grey water and desalination plants. Wood believes there could be hospital and other health infrastructure work, pointing to his recent work on the Royal North Shore Hospital.

Wood says there is no doubt that such projects could proceed, but some difficulty remains, as road and PPP projects require 100% financial commitment from institutions before funding can be granted. This is quite difficult to achieve in the present market.

Another point to consider is the government's recent interest in fast-tracking projects. This will likely put pressure on lawyers to increase productivity. However, Mitchell is not concerned and says the government usually sets realistic and achievable timeframes.

Some recent deals

1. BRISBANE AIRPORT LINK PPP PROJECT
Value: A$4.8bn

Firm: Corrs Chambers Westgarth
Lead lawyer: David Warren
Client: BrisConnections Consortium

Firm: Clayton Utz
Lead lawyers: Doug Jones, Alan Macguire, David Lester
Client: BrisConnections Consortium

Firm: Freehills
Lead lawyer: David Templeman
Client: Northconnect Motorway Consortium

Firm: Mallesons Stephen Jaques
Lead lawyer: David Storr
Client: Northern Motorway Consortium

• Reportedly largest PPP project undertaken to date in Australia
• Project includes 7-km toll road linking Brisbane's northern suburbs to airport, with fly-over road and section for Northern Busway
• Financial close expected in August 2008, construction due to complete mid-2012

2. OAKAJEE PORT & RAIL PROJECT
Value: A$3.5bn

Firm: Clayton Utz
Lead lawyer: Susan O'Rourke
Client: Yilgarn Infrastructure

Firm: Deacons
Lead lawyer: Ian McCubbin
Clients: Ansteel, Sinosteel

Firm: Allens Arthur Robinson
Lead lawyer: Alex Ding
Client: China Railway Materials Commercial

Firm: Jingcheng & Tongda
Client: China Communication Construction Company

• Perth-based company Yilgarn Infrastructure's project will see construction of independently owned and operated common-user deepwater port north of Geraldton, and rail network to service multiple iron ore mines
• Project partly funded by five Chinese companies: Sinosteel, China Railway Engineering, China Communication Construction Company, China Railway Materials Commercial and Ansteel
  China's EXIM Bank and China Development Bank will provide debt financing for project, which
  is due for completion in 2010 subject to environmental and other approvals
• Still a continuing competitive process for rights to port and Yilgarn may win rights if present managing body fails to reach an agreement by end of year

3. BUCKLAND PARK DEVELOPMENT
Value: A$2bn

Firm: Piper Alderman
Lead lawyers: Tony Britten-Jones, Owen Keen
Client: Walker Corporation

Firm: Richards Commercial Lawyers
Lead lawyer: Robert Richards, John Gerovasilis, Tom Pledge
Client: Vosporus

• Walker Corporation is developing Buckland Park alongside the Gawler River in South Australia
• Project aims to capitalise on anticipated growth in defence force and mining industry sectors and to provide affordable, sustainable housing for locals and families attracted to South Australia from interstate
• Walker required assistance with negotiation and preparation of documents for project, namely a joint development agreement with Vosporus, the local owners
• Development is a 1,000-hectare site, which will cater for 25,000 people and include 8,000 dwellings, town centre and shopping precinct, and medical and community facilities, recreation areas and school

4. BRISBANE NSBT PROJECT
Value: A$1.8bn

Firm: Clayton Utz
Lead lawyer: Doug Jones
Client: Brisbane City Council

Firm: Allens Arthur Robinson
Lead lawyers: Leighton O'Brien, Richard Gordon
Client: D&C Contractor LBBJV

Firm: Mallesons Stephen Jaques
Lead lawyers: David Storr,
Dominic Bortoluzzi
Client: RiverCity Motorway Consortium

Firm: Freehills
Client: ABN Amro

• First local government PPP of its kind in Australia and Queensland's first privately financed toll road
• North-South Bypass Tunnel (NSBT) project posed numerous legal and public policy challenges
• Project enabled firms to build on toll road work it had previously done for NSW and Victorian governments
• Project was attractive since it led to other projects such as the Brisbane Airport Link, and potentially overseas projects in the US

5. NEWCASTLE COAL INFRASTRUCTURE FINANCE
Value: A$1.55bn

Firm: Allens Arthur Robinson
Lead lawyers: Rob Watt, Phillip Cornwell, Thomas Miller
Client: SMBC, Suncorp-Metway, OCBC Capital Investment Private, KBC, DZ Bank, Dexia, ANZ

Firm: Blake Dawson
Lead lawyers: David Mason, Matthew Stott
Client: Newcastle Coal Infrastructure

Firm: Clayton Utz
Lead lawyer: Sergio Capelli
Client: Newcastle Coal Infrastructure

• Financing involved A$1.3bn senior debt and A$250m junior debt, senior funding was provided by ANZ Bank, Dexia, KBC, Suncorp-Metway, DZ Bank, OCBC and SMBC
• Debt funded through a variety of instruments, including a construction facility converting to term facility, cost overrun facility, liquidity facility, working capital facility, letter of credit facility and junior notes
• Sponsors of project were coal companies in the Hunter Valley forming the Newcastle Coal Infrastructure Group
• Sought government approval and reached financial completion in relatively short time, by April 2007
• Transaction required innovative structure and complexity since were multiple layers of debt and equity as well as off take involvement

Leading firms

Other recommended firms