The NSW government is eyeing off extra infrastructure projects after pocketing from two electricity deals what it expected to earn from three.
Australian companies IFM Investors and AustralianSuper have bought a majority share of electricity supplier Ausgrid for more than $16 billion on a long-term lease through an unsolicited bid.
After $10 billion worth of debts are repaid, net proceeds from the transaction will be about $6 billion, NSW Premier Mike Baird says.
Mr Baird said the "outstanding" result far exceeded expectations.
"On every single criteria this is a win, win win for the people of this state, for the members of the super fund, and ultimately, I believe strongly, for this economy," Mr Baird said.
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"On the back of today we are underwriting for the future generation rail, roads, schools and hospitals."
It is the second electricity asset to be partially-privatised by the NSW government, as part of Mr Baird's 2015 election promise to raise $20 billion by selling off half the state's poles and wires.
A large chunk of Transgrid was sold off in December for roughly $10 billion, with Endeavour Energy still up for grabs.
With Commonwealth incentives and payments included, the eventual total from all three transactions is expected to far surpass the election commitment.
"When you bring the first two leases together, we're pretty much where we anticipated to be after three," Mr Baird said.
"So there's an opportunity for further infrastructure."
The Ausgrid deal comes after federal treasurer Scott Morrision in August blocked bids from Chinese investors for NSW's electricity distributor, citing "national security" concerns.
Because this deal was reached with an all-Australian consortium, there was no need for Foreign Investment Review Board approval this time around, NSW Treasurer Gladys Berejiklian said.
The "100 per cent Australian ownership" of those behind the unsolicited proposal was also given as a reason for accepting the offer following their confidential approach, rather than putting it out to tender.
Mr Baird insisted he got the best possible deal for the state.
But NSW Opposition Leader Luke Foley argued the government could have made more money through a competitive tender process.
"Through a scandalously inappropriate process the government of NSW has sold Ausgrid for over a billion dollars less than they should have received for it," Mr Foley said.
"This is like selling your house to the first person who knocks on your door and makes a bid."
