Regional NSW is set to receive a whopping $4.154 billion for infrastructure after the NSW government agreed to transfer its share of the Snowy Hydro to the Commonwealth.

NSW Premier Gladys Berejiklian said the deal was a huge win for NSW, especially regional NSW, which will benefit from the Snowy 2.0 scheme and the entirety of the proceeds.

“Not only have we unlocked billions for infrastructure in the regions, but it paves the way for the nation-building Snowy 2.0 project. A federal government investment of more than $3 billion that will create 5000 direct jobs in the Snowy Region,” said Berejiklian.

The transaction will take the Commonwealth’s ownership of Snowy Hydro Limited from 13% to 100% and allow Snowy Hydro Limited to progress development of its proposed Snowy 2.0 pumped hydro project.

Herbert Smith Freehills has advised New South Wales Treasury on the sale of New South Wales’ 58% shareholding in Snowy Hydro Limited, the owner and operator of the iconic Snowy Mountains hydro scheme, the Laverton North, Valley Power and Colongra gas peaker power stations and the Red and Lumo energy retail businesses.

The Herbert Smith Freehills team was led by partner David Ryan, with assistance from partner Peter Dunne, senior associate Bailee Walker and lawyer Kai Ito.

“We are delighted to work with New South Wales Treasury on such a significant transaction and in relation to such an iconic asset as the Snowy Mountains hydro scheme. The transaction is an excellent outcome for New South Wales,” said David Ryan.

NSW Treasurer Dominic Perrottet added that the transaction represented the next step in the NSW governments asset recycling strategy and exit from electricity generation overall.