All asset depreciation and impairments have to be announced as...

All asset depreciation and impairments have to be announced as soon as they are known. This is what Downer announced in May:
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Reliance Rails funding arrangements are on a non-recourse basis to Downer and the other Reliance Rail shareholders, and this continues to be the case;

Downer is not obligated to provide further equity to Reliance Rail; and

Any support Downer may choose to offer Reliance Rail would not be material to Downer.

Further, the speculation of such an equity raising related to Reliance Rail is inaccurate and there is no such mandate in place between Downer and any investment bank.
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So no effect on the bottom line or the cash flow. This was reiterated for BHP's $2b project and FMG's Christmas Creek project. But not now apparently! The profit's gone! So where's the cash coming from to fund these projects now? Either a deal has been done with the banks or a cap raising is planned?

I think the recent developments are political and a deal has been done with the NSW Gov to get Sydney's 13km south west rail link up and running asap.

Rail projects in NSW cost 300% more than similar projects elsewhere. If you really want to know where the money goes read this...

Engineer - Posted Thursday, 26 March 2009
I am an experienced project manager, with more than a few private rail projects under my belt in NSW working for the people who pay the money. Not the various rail corporations which this state has had over the past decade to cover the tracks of the guilty. Not the contractor. But responsible for design and construction via processes of public tender for mult-million dollar projects.

I have been absolutely flummoxed and gobsmacked at each step along the way by the need to revisit basic design and project proposals seemingly endlessly. Committees, meetings, submissions, redesigns, revised proposals, resubmissions, knockbacks from unheard-of working groups and other bunches and mobs of rail staff who collectively and individually appear to have no idea what they are employed to achieve.

As the years roll by and the costs mount, these fellows restructure their dunghill and then declare that the previous approvals must be reviewed - restarted - whatever. Endless delays occur due to the non-availability of key staff in civil design, signals, survey - whatever. They seem to spend more time at conferences than contemplating actual productive work.

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