How the Public Private Partnership (PPP) Works
Canberra’s Light Rail construction is being delivered through a Public Private Partnership (PPP) between the ACT Government and the Canberra Metro consortium.
A PPP is a long-term partnership where government works with private industry to deliver major public infrastructure. Under this model, Canberra Metro is responsible for designing, building, financing, and maintaining the light rail network for the life of the contract. Payments are linked to performance, helping ensure high standards of safety, reliability and customer service.
The Stage 1 PPP runs for around 23 years, including approximately 20 years of operations. Instead of paying the full construction cost upfront, the ACT Government makes payments over the contract term, like it funds other public transport services. At the end of the contract, ownership of the light rail assets transfers to the ACT Government.
This approach allows the private sector to manage delivery and long-term performance, while the government retains oversight and ultimate ownership of the network.
