The New South Wales Treasurer Mike Baird has announced that the indicative bid phase for the $1.2 billion long-term lease of the Sydney Desalination Plant (SDP) has prompted a strong response.


Consortiums including both domestic and international bidders have lodged indicative bids for the SDP with Goldman Sachs.


The indicative bids will now be evaluated to select which parties will proceed to the binding bid phase.


Mr Baird said the transaction will unlock funds for priority infrastructure projects across NSW such as roads, schools and hospitals.


He said the NSW Government will ensure that the Desalination Plant will continue to operate when it is required under the rules established by the 2010 Metropolitan Water Plan, as part of Sydney’s long-term water security plan. The transaction will not impact customer water bills.


Questions have been raised in Parliament about potential conflict of interest arising from of the government's plan to lease the Sydney desalination plant, given the former Liberal Party leaders Nick Greiner and Peter Collins have been paid by one of the bidders, Trility.


Mr Greiner, who works as a consultant for Trility, is the chairman of Infrastructure NSW, which is in charge of the infrastructure fund, Restart NSW.