The privatisation of Port Botany and Port Kembla will deliver $5.07 billion to the NSW government, to be spent on infrastructure projects including the planned WestConnex motorway and an upgrade to the Pacific Highway.

Treasurer Mike Baird announced on Friday that consortium NSW Ports had agreed to pay $4.31 billion for Port Botany and $760 million for Port Kembla for a 99-year lease.

Port Botany has been privatised on a 99-year lease. Credit:Robert Pearce

NSW Ports is comprised of three Australian firms, Industry Funds Management, Australian Super and QSuper, and Tawreed Investments, a wholly-owned subsidiary of the Abu Dhabi Investment Authority.

After debt is repaid, net proceeds are $4.3 billion, which will be funnelled into the state government’s investment fund, Restart NSW. There will also be an annual lease payment of around $5 million.