Major public transport infrastructure project to be built in conjunction with private companies
The Victorian Government has confirmed the Melbourne Metro Rail Project will be built through a partnership between Government and the private sector.
The project is set to be one of the biggest public transport infrastructure project in the history of the state.
Treasurer Tim Pallas and minister for public transport Jacinta Allan today confirmed the procurement strategy Melbourne Metro Rail Project, which will transform Melbourne’s train network into an international-style metro system.
The State Government has committed $4.5 billion to Melbourne Metro Rail, with $1.5 billion allocated in the 2015-16 Victorian Budget alongside a $3 billion Metro bond agreement.
Discussions also continue with the Federal Government about the provision of federal funds towards this transformative project.
A multi-billion dollar Public Private Partnership (PPP) will deliver the largest package of works on this mega-project, including two nine-kilometre rail tunnels and five underground stations.
It will be an ‘availability-based PPP’, meaning that, on top of designing and building the tunnels and stations, the private sector will also be responsible for financing, operating and maintaining the infrastructure.
Additional works will be delivered through separate procurement packages, including relocation of existing services, reconfiguration of existing tracks, and high capacity and conventional signalling upgrades.
“We desperately need Melbourne Metro – without it, our transport system, our city and our state will grind to a halt,” says Allan.
“Confirming the procurement arrangements means we can start more detailed discussions with the market about the best way to deliver this critical project, which will unclog the centre of the train system, creating space for 20,000 extra passengers in peak hour, every day.”
The announcement of the procurement arrangements gives the market time to prepare bids and submissions to meet the Labor Government’s timelines for the project, which will see major construction begin in 2018 and the full project delivered by 2026.
“Victoria was an early adopter in the delivery of PPPs, and we continue to be at the forefront of their evolution, with the multi-billion dollar partnership between Government and the private sector now set to deliver the new tunnels, stations and other key components of Melbourne Metro Rail Project,” says treasurer Tim Pallas
“The authority will intensify its discussions with the market immediately. After four wasted years, we’re getting on with delivering the Melbourne Metro Rail Project.”
Melbourne Metro Rail Authority will conduct market soundings on the PPP in the coming weeks, ahead of an extensive industry briefing and market engagement process in early-2016.