Centrepiece Of Melbourne Metro Rail To Be Built Through PPP

19 November 2015

The centrepiece of the biggest public transport infrastructure project in Victoria’s history will be built through a partnership between Government and the private sector.

Treasurer Tim Pallas and Minister for Public Transport Jacinta Allan today confirmed the procurement strategy for the Andrews Labor Government’s Melbourne Metro Rail Project, which will transform Melbourne’s train network into an international-style metro system.

The Labor Government has already 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 Turnbull 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.

Today’s 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.

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.

Potential private sector partners are now invited to formally register their interest in tendering for packages of work with Melbourne Metro Rail Authority at Link .

Quotes attributable to Treasurer, Tim Pallas

"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."

"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."

Quotes attributable to Minister for Public Transport, Jacinta Allan

"We desperately need Melbourne Metro – without it, our transport system, our city and our state will grind to a halt."

"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."

Reviewed 10 February 2021

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