By Bonny Burrows
An international airport at Kooweerup, rivalling Tullamarine in size, is one step closer to reality with a multi-national consortium pledging to bankroll the $7 billion project.
Paragon Premier Investment Fund will next week present its plans for a south-east airport to the State Government after its chairman Alande Mustafi Safi last week received a signed letter of intent from an undisclosed financer which promised to fund the development.
As revealed by the Gazette on 22 March 2017, Mr Safi had been engaging with interested parties in Dubai, who had the cash and desire to bring the project to fruition.
Gerard Kennedy, a director of Mr Safi’s group, said at the time “these people can certainly afford to do it, they want to do it, and they approached us”.
While the identity of the backer has not been disclosed, it is understood the group, based in Europe and the Middle East, has built a number of airports, including two in Europe.
As previously reported, a Kooweerup airport – as featured in the State Government’s 2013 population growth blueprint Plan Melbourne – would service more than 5 million domestic passenger movements annual and create more than 3000 ongoing jobs, along with an additional 1000-plus during construction.
It is also expected to open up international exportation to local businesses and opportunities for further development and economic investment in the way of supporting infrastructure.
Speaking to the Gazette on 4 July, Mr Kennedy said while the funds were there, the project was still subject to government support.
The government has yet to back the project and has said that demand for a third airport was “not yet there”.
But the Paragon group thinks otherwise and is moving forward with its plans.
Mr Kennedy and Mr Safi will present the proposal to government next week and a formal legal contract will be drawn up between Paragon and the investors “in the next couple of days”.
The businessman stressed it would be a long process before an airport was operational, and even before land was secured.
“I will need to talk to the State Government and the group of municipalities behind the south-east airport report.
“I’m sure they’ll have things they’ll want to put to me about timing, planning and land procurement,” Mr Kennedy said.
Landowners would also need to be engaged in the consultation process, which would take some time.
“There’s probably going to be some concerned conversations there. You need to be really considerate of the people you’re approaching and do things with the right attitude,” Mr Kennedy said.
Local councils have been advocating for the project for many years and are excited about the prospect of an international airport on their doorstep.
Cardinia Shire Mayor Brett Owen said with the region’s continuous growth, “the development and operation of an international airport in Melbourne’s south-east will be a major economic and employment driver for our communities”.
“The development of a new international airport would be a key economic driver, particularly given the imminent closure of the automotive manufacturing industries across Melbourne,” councillor Owen said.
“We look forward to working with the Victorian Government and any potential investors to identify a suitable site for the next international airport in Melbourne’s south-east.”
However, City of Casey Mayor Sam Aziz warned that such a development brought challenges.
“I think this is fantastic news. I think the airport will bring multiple benefits,” councillor Aziz said, spruiking increased employment, possible traffic congestion relief and international travel opportunities.
“But I believe a significant piece of the puzzle missing which is the road infrastructure which is so badly needed.”
An airport couldn’t be supported with current infrastructure, Cr Aziz said.
Cr Aziz said he would advocate in the lead-up to the 2018 state election that the $1.4 billion given to the west in roads and transport infrastructure was matched in the south-east.
“If doesn’t happen, living standards, despite the airport, will continue to decrease,” he said.
Victorian Premier Daniel Andrews said he was yet to see any plans for the project other than what was reported in the media.
The government’s priority, he said, was on “upgrading connections to Melbourne Airport”.
