SYDNEY Airport Corporation has passed up the chance to build the $6 billion Western Sydney Airport at Badgerys Creek days before the May 8 deadline to accept before the federal budget.
"Sydney Airport's decision not to accept the WSA (agreement) on the terms provided is in the best interest of our investor who represent millions of Australians through their superannuation funds," the company's chief executive Kerrie Mather said.
Sydney Airport chief executive said the decision had been taken on behalf of her investors. Picture: AAP Image
"Despite the opportunities that WSA will present, the risks associated with the development and operation of WSA are considerable and endure for many decades without commensurate returns for our investors."
It was a decision widely tipped by market analysts, with Sydney Airport required to invest significant amounts of money with no return for years.
It was a decision also expected by the Turnbull government, which has put in place contingencies to fund the construction itself through a corporate structure.
Urban Infrastructure Minister Paul Fletcher has already met with some of the country's largest construction firms, with two - Lend Lease and CIMIC - likely to be the top choices if the government agrees to oversee the development.
Sydney Airport was surprised in October after the government withdrew an offer of a concessional loan to cover the construction at Badgerys Creek.
The government is insistent the new airport will open by 2026.
The 2002 privatisation of Sydney Airport gave the company first right of refusal on running the city's second airport.
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