Boutique social infrastructure manager Plenary Investment Management is part of a consortium that has been shortlisted to bid for the operations contract for the $2.5 billion Sydney Metro project.

The Kujika Consortium that comprises Bovis Lend Lease, Downer EDI, Keolis, McConnell Dowell, Thales and Plenary Investment Management will go up against Met One for the right to operate the Sydney Metro system.

Met One is made up of Serco, Bombadier Transportation, Laing O'Roukre and Hastings Management.

"The Kujika Consortium is pleased to have reached the next stage in the process and is looking forward to further demonstrating its capabilities and experience throughout the bid process," a statement from the consortium said.

The contract is for phase one of the project between Central and Rozelle and includes the supply of the trains and track, and the fitting out of six stations. It also includes operation and maintenance of the seven-kilometre line.

According to a Plenary Investment Management spokesperson, there are a number of superannuation funds completing due diligence on the project with a view to investing.

"Social infrastructure represents an ideal fit for institutional investors because it is long term, low risk and inflation protected," he said.

However, Frontier Investment Consulting head of infrastructure research Chris Trevillyan said while many of the current social infrastructure projects were quite large with attractive looking returns, there were still associated risks.

"The investment to commit to a bid process is still significant and it is uncertain if it will be fruitful," he said.

"We do not exclude greenfield investing but we need to limit the exposure to manage the overall risk in the portfolio."

The final bids for the Sydney Metro project must be lodged by 8 March 2010, with an announcement expected by mid 2010.

In June this year, Plenary Investment Management was created as part of a joint venture between Plenary Group and Pinnacle Investment Management.