Building for Growth 2013-14 VictoriaN Budget
Infrastructure Investment Budget Information Paper No. 2 The Secretary Department of Treasury and Finance 1 Treasury Place Melbourne, Victoria, 3002 Australia Telephone: +61 3 9651 5111 Facsimile: +61 3 9651 5298 Website: www.budget.vic.gov.au Authorised by the Victorian Government 1 Treasury Place, Melbourne, 3002 Print managed by Finsbury Green Level 9, 124 Exhibition Street, Melbourne, 3000 This publication makes reference to the 2013-14 Budget Paper set which includes: Budget Paper No. 1 – Treasurer’s Speech Budget Paper No. 2 – Strategy and Outlook Budget Paper No. 3 – Service Delivery Budget Paper No. 4 – State Capital Program Budget Paper No. 5 – Statement of Finances (incorporating Quarterly Financial Report No. 3) © Copyright State of Victoria 2013 This book is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. ISSN 1440-6969 Published May 2013 Printed on recycled paper Infrastructure Investment > 1
Contents
Introduction 2 A record infrastructure program 3 Continuing to plan and deliver vital infrastructure 4 The Government’s infrastructure scorecard 5 Key projects timeline – a snapshot 6
Transport services 8 A vision for transport, now and for the future 9 East West Link – Stage 1 11 Improving our roads 14 Transforming the passenger rail experience 16 Enhancing freight capacity 18 Planning for the future 19
Health services 20 A world-class health system 21 Meeting the demand for health services in Melbourne’s growth corridors 23 Upgrading health care at a local level 24
Infrastructure for Victoria as a learning community 26 High quality school infrastructure to support a top-tier school system 27 Refocusing skill-building in Victoria 29
Public safety and justice 30 Building a safer community 31
Infrastructure to support urban and regional development 32 Enhancing the most liveable city 33 Growing regions, creating jobs 33 Investing in regional water infrastructure 33
Policy frameworks to drive infrastructure value 34 An integrated approach to transport, planning and infrastructure 34 Increased oversight of major projects to improve efficiency 35 Bringing a more commercial focus to infrastructure procurement 35 Tackling rising construction costs 36
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Introduction
Left: Investment in the Port of Hastings will provide new port capacity, increase competition in the sector and promote new employment opportunities for regional Victoria.
> The Coalition Government > This budget builds on > Overall, the infrastructure is investing in new investments already program will provide new infrastructure to support underway and includes a and upgraded schools, service delivery and improve record commitment to new hospitals and other health productivity. A substantial infrastructure projects, with facilities, roads, public infrastructure program is a total estimated value of transport, police and fire underway and will deliver up to $10.5 billion. stations across the state. significant benefits for > With the right economic > Other major projects, such Victorian families and and financial frameworks as the $630 million new businesses. in place, the Coalition Bendigo Hospital, the new > The Government is Government’s infrastructure Monash Children’s Hospital addressing gaps in existing investment is projected to and the Royal Victorian infrastructure, investing in be a record $6.1 billion in Eye and Ear Hospital will new infrastructure to support 2013‑14. transform access to health growth and proactively >e The centr -piece of the services for the Victorian planning for Victoria’s future 2013-14 Budget infrastructure community. infrastructure needs. program is the East West Link > The size of the State’s > The Government’s ongoing – Stage 1. This is a city and infrastructure requirements commitment to responsible state-shaping project, with are significant. The economic and financial an estimated capital cost of Commonwealth Government management means that it between $6 and $8 billion; should contribute to can fund these initiatives it will ease congestion and Victoria’s infrastructure needs sustainably; now and into better link people, products by allocating Victoria a fair the future. and markets across Victoria. share of Commonwealth funding for transport and other infrastructure projects.
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A record infrastructure The total value of Victorian public sector capital projects underway or program commencing in 2013-14, including The Coalition Government’s projects across both the general commitment to responsible economic government and public non-financial and financial management will see corporations (PNFC) sectors, is in general government sector infrastructure excess of $48 billion. This includes investment maintained at 1.3 per cent projects being delivered through of GSP (calculated as a rolling 5 year public private partnerships (PPPs) average), while the net debt burden and indicative values for the East will be reduced over the period to 2022. West Link – Stage 1 and the Webb Dock redevelopment projects. The Coalition Government has developed and delivered a record In 2013-14, the Coalition Government infrastructure program. Since coming is also delivering on its election to office in late 2010, the Coalition commitments by investing over Government has, and is, investing each $3.3 billion in capital projects. year an average of around $5 billion on infrastructure, compared with an average of around $3 billion per year during the previous decade. In 2013-14, general government sector investment in roads, public transport, health, schools and other infrastructure The Victorian Comprehensive Cancer Centre is expected to total $6.1 billion – a new Project is on time, on budget and on track to be operational in 2016. infrastructure investment record for Victoria. This investment builds on the $5.6 billion estimated infrastructure spend in 2012-13.
Government infrastructure investment Net infrastructure investment (excluding fiscal stimulus) Average 2000-01 to 2010-11 Average 2011-12 to 2016-17 8.0
7.0
6.0
5.0
$ billion 4.0
3.0
2.0
1.0
0.0
2000-01 2002-03 2004-05 2006-07 2008-09 2010-11 2012-13 2014-15 2016-17
Source: Department of Treasury and Finance.
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Introduction (cont)
Continuing to plan and Grow: investing in infrastructure deliver vital infrastructure to support a growing, moving Infrastructure provides the platform for population delivering high quality services to the The Government is providing the community. It has a significant impact infrastructure to support population on state and national productivity and growth and improve liveability and has the ability to generate significant productivity. Projects that support employment. growth include investing in new trams and additional metropolitan Economic infrastructure is central to and regional train rolling stock, the driving growth and building on the new Monash Children’s Hospital State’s strong reputation as a great and the new Waurn Ponds place to live, invest and grow a Community Hospital. Infrastructure to support business. Victoria’s key economic the world’s most liveable opportunities come from emerging The Government is also investing in city and state international markets, an expanding projects that will transform the way CBD, thriving regional cities and a we move, live, work and do business Appropriate, responsible, smart productive agricultural sector. These around the State. These projects include: investment in infrastructure is a key component of a resilient and are creating a diverse and dynamic > the $630 million new Bendigo liveable state. The Economic economy, changing the location and Hospital; distribution of business-to-business Intelligence Unit rated Melbourne > addressing gaps in the Regional the world’s most liveable city activity and producing a rapidly Rail Link project (including funding growing freight task. in 2012. Melbourne is the only additional regional rolling stock); and Australian city with a ranking in The Coalition Government understands > the M80 road upgrade. the new global city prosperity the current challenges affecting index compiled by the United Building on these achievements, the communities and businesses in Victoria, Nations Habitat agency. The Government will start work on the and that an increasing and expanding State of the World’s Cities 2012/13: $6 to $8 billion East West Link – Stage 1 population is changing the way we Prosperity of Cities report examined project. It has also committed $110 million live, move and do business in the 95 cities. Melbourne was ranked to progress the development of the State. To address these challenges, the sixth in the world in the index, Port of Hastings. These projects will Government’s infrastructure agenda which measures not only productivity increase Victoria’s capacity for trade and focuses on delivering essential projects and infrastructure development, create better linkages across the State. to fix and grow Victoria’s infrastructure but quality of life, equity and today, and also plan to address the social inclusion and environmental State’s future infrastructure needs. Plan: infrastructure sustainability. These measures planning for the future demonstrate that growth and Fix: addressing immediate The Government is getting on with the liveability can exist together. system needs job of delivering infrastructure today. Since coming to office, the Coalition But we need to keep thinking and Government has invested in projects planning for the future. Undertaking that fix Victoria’s existing infrastructure. proper project planning and These initiatives include significant development work today on key improvements to the road network, projects will ensure that the Coalition upgrades to police and fire stations Government is in a position to deliver across the State, redeveloped and the infrastructure Victoria needs in the upgraded hospital infrastructure future as demand rises and funding (such as the redevelopment of the becomes available. The Government’s Royal Victorian Eye and Ear Hospital) commitment to effective infrastructure and modernised schools. The Coalition planning is demonstrated by the range Government is taking action to of work being progressed, including for systematically eliminate a number of the Melbourne Metro rail tunnel and the level crossings across Victoria. The proposed expansion of the Melbourne Government has fully funded the full Convention and Exhibition Centre. removal of five level crossings across Recognising the interdependency of Melbourne which are expected to be transport, infrastructure and land-use completed in the Government’s first planning, the Government has term. In addition, work is underway established the Department of Transport, through the Metro Level Crossing Planning and Local Infrastructure. The Blitz program towards eliminating new department will ensure seamless a further seven level crossings. integration of transport, infrastructure and land use planning across the State to support smart, sustainable growth.
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The Government’s infrastructure scorecard Infrastructure investments underway Infrastructure projects commencing this year > $630 million for the new Bendigo Hospital will create an Investing in new infrastructure continues to be a key integrated cancer centre, a mental health unit, 372 beds priority of the Government in this budget. and 10 operating theatres for this thriving regional centre. > The East West Link – Stage 1 is a $6 to $8 billion project that Twenty-first century facilities will enable the hospital to will provide a 6 kilometre freeway-standard link between deliver improved patient care according to best practice, the Eastern Freeway at Hoddle Street and CityLink at develop a skilled health workforce for the future, Parkville. This project is the first stage of the Government’s improve operational efficiency and provide for the longer term commitment to the East West Link, a planned health needs of a growing population. 18 kilometre road link to connect the Eastern Freeway > $448 million Box Hill Hospital redevelopment will at Hoddle Street with the Western Ring Road. deliver more than 200 additional beds and more services > $110 million towards planning for the development to families and communities in Melbourne’s east. of the Port of Hastings as an international container > The $1 billion Victorian Comprehensive Cancer Centre port, including planning for key transport links such (VCCC), currently under construction, will be a pivotal as the Western Port Highway. facility within the Parkville precinct. Due for completion > $100 million towards the Bayside Rail Improvement at the end of 2015, the VCCC will be the largest cancer project that will a fund a range of infrastructure research facility in Australia and one of the top 10 cancer improvements along the Frankston rail line including research centres globally. station upgrades to improve passenger amenity and infrastructure upgrades to support the deployment > A significant investment in other hospital expansions, of the modern X’Trapolis trains on the Frankston, redevelopments and upgrades across the State including Werribee and Williamstown lines. a $93 million major upgrade of the Geelong Hospital, $76 million for redevelopment of the Frankston Hospital > Over $400 million in project funding for the new emergency department and expansion of inpatient services Monash Children’s Hospital and the redevelopment of and the $40 million redevelopment of the Echuca Hospital. the Royal Victorian Eye and Ear Hospital. The Monash Children’s Hospital will deliver 230 paediatric beds for > Regional Rail Link is one of Australia’s biggest the growing population in the south east of Melbourne, infrastructure rail projects. The project is building the Mornington Peninsula and Gippsland. The Royal dedicated regional tracks to serve passengers travelling Victorian Eye and Ear Hospital redevelopment will on the Geelong, Ballarat and Bendigo lines through provide care for an extra 7 000 patients a year – the metropolitan system to Southern Cross Station. and further advance Victoria’s reputation as research, > $261 million for 40 new regional train carriages and innovation and training leaders in this specialisation. funding for associated infrastructure will ensure > The Government will provide $50 million for the regional commuters receive the full benefits of the Waurn Ponds Community Hospital, a new 32 bed Regional Rail Link project. community-based specialist day medical and day surgery centre in Waurn Ponds to meet the needs of the growing > $210 million was provided in the 2011-12 Budget for populations of Geelong and the Surf Coast shire. seven metropolitan trains. > $203 million capital program over the next two years > $350 million for removing level crossings which will will fund new schools, and modernise and upgrade significantly alleviate congestion and improve public schools, as well as fund new relocatable classrooms and safety. Work to remove five crossings is already underway land acquisition for future new schools. This builds on in Springvale, Mitcham and Sunshine, with progress towards the $52 million provided for maintenance at more than removal of another seven removals funded in this budget. 200 schools across Victoria. > A significant investment in emergency services > $176 million in this budget to purchase eight more infrastructure includes $60 million for CFA station metropolitan network trains bringing the Government’s upgrades and replacements, and operational resourcing, total spend on new metropolitan trains to $388 million $126 million for new and upgraded police stations and since coming to office. other infrastructure upgrades to accommodate an additional 1 700 frontline police and 940 protective services officers. The Government is also progressing the expansion of correctional facilities across the State, including construction of a new male prison at Ravenhall. > Continued investment in the $1.2 billion M80 Ring Road, bringing the State’s contribution to nearly $300 million. This will progress the M80 Ring Road Upgrade between Laverton North and Greensborough. > $408 million for new and upgraded schools and other improvements to school facilities.
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Key projects timeline – a snapshot
Victorian Comprehensive Cancer Centre
Regional Rail Link and Rolling Stock
The M80 Upgrade
New Bendigo Hospital
Metro Level Crossings (Springvale, Mitcham, Sunshine)
Royal Victorian Eye and Ear Hospital
Box Hill Hospital
Monash Children’s Hospital
East West Link (Stage One) Project
2011 2012 2013 2014
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Victorian Comprehensive Cancer Centre
Regional Rail Link and Rolling Stock
New Bendigo Hospital
Metro Level Crossings (Springvale, Mitcham, Sunshine)
Royal Victorian Eye and Ear Hospital
Box Hill Hospital
Monash Children’s Hospital
East West Link (Stage One) Project
2016 2017 2018 2019
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Transport services
Left: Work is progressing on the Regional Rail Link. The Government has ordered 40 new V/Line carriages to meet increased services when the Regional Rail Link opens in 2016.
Above: The M80 upgrade will provide a modern piece of infrastructure able to support Melbourne’s continued growth and development in the decades ahead.
> The Coalition Government is investing in transformational projects such as the $6 to $8 billion Stage 1 of the East West Link and the major redevelopment of Victorian ports. These city and state‑shaping projects will fundamentally improve the way Victorians live, move around and do business. > A key focus is on fixing and growing Victoria’s public transport passenger services and its road and freight network to ensure capacity meets growth, and quality meets community and business expectations. > These investments build on and complement other significant projects such as the $4.8 billion Regional Rail Link project, which is now on track after action taken by the Government to rectify cost issues and scope deficiencies. > The Government is working to ensure all projects reach their full potential and Victoria’s future transport system works as one efficient, safe and accessible network. > The Coalition Government is planning for longer-term solutions to Victoria’s transport needs through projects such as the Melbourne Metro Rail Tunnel project and rail planning work, to ensure Victoria remains as one of the best places to live, work and invest.
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A vision for transport, > new railway stations at Grovedale, Epsom and Southland ensuring more now and for the future people have access to transport This year the Coalition Government will services, an upgrade to Ringwood progress and deliver a range of projects railway station and bus interchange that fix immediate transport system to revitalise the town centre and challenges, grow the network in the provide a more efficient, comfortable medium term, and plan for major and safe transport experience and projects to deliver its long-term vision construction of a multi-level car of a world-class transport network. park at Syndal station; These projects build on the significant > $100 million in this budget for transport program the Coalition Bayside rail improvements that will Government delivered in its first allow the modern fleet of X’trapolis two budgets, to support financially trains to operate on the Frankston, responsible growth and transform Werribee and Williamstown rail lines, the way Victoria operates. and improve services and station Highlights of the overall transport amenity for railway stations on the infrastructure program include: Frankston line; > the $6 to $8 billion East West Link > investment in regional and metropolitan – Stage 1 as the first step towards road improvements to fix and grow the longer-term commitment to the capacity and quality of the road the delivery of the East West Link network. In 2013‑14, an additional as a whole; $170 million has been provided for > $110 million for planning the maintenance and targeted restoration development of the Port of Hastings of the arterial road network. This is as a world-class container port; in addition to significant funding > fixing transport bottlenecks through provided by the Government since a $419 million investment in rail it came to office for upgrades to crossing grade separation works specific metropolitan and regional to improve the flow of traffic and roads, including construction of the improve safety; Dingley Bypass, Koo Wee Rup Bypass, Narre Warren-Cranbourne > growing transport passenger Road duplication and Western services with a total of $386 million Highway Duplication – Beaufort to for 15 more metropolitan trains, Buangor; and which will make it easier and more comfortable to get around Melbourne > $24 million funding in this budget ‑ particularly in peak times. The towards Transport Solutions which Government has also provided will address key freight transport $2 million for detailed procurement bottlenecks in regional Victoria by planning for new high capacity trains; either increasing capacity on the road network or better utilising the existing infrastructure.
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Transport services (cont)
Key transport projects in Victoria
Statewide projects 10. Ballarat Western Link Road > Regional rail maintenance 11. Rural overtaking lanes – > New regional train carriages Melbourne‑Lancefield Road > Non-urban train radio 12. Koo Wee Rup Bypass Key transport projects 13. Hume Highway rest areas Mildura 1. Geelong Ring Road stages 4B and 4C 14. Epsom Eaglehawk rail improvements 2. Princes Highway duplication – Traralgon to Sale 15. Talbot Station re-opening 3. Western Highway duplication 16. Western Highway upgrade 4. South Gippsland Highway upgrade 17. Regional Rail Link 5. Rural overtaking lanes – Hyland Highway 18. South West Victoria passing loop 6. Rural overtaking lanes – Strzelecki Highway 19. Goulburn Valley Highway – Nagambie Bypass 7. Kilmore-Wallan Bypass 20. Warragul Station precinct upgrade 8. Sealing Omeo Highway 21. Echuca to Toolamba Rail upgrade 9. Rural overtaking lanes – Princes Highway West 22. Grovedale Station Swan Hill Deniliquin Oaklands
Tocumwal
Underway Echuca Wodonga
21 Shepparton Wangaratta Commence soon 16 13 Planning 14 Benalla Bendigo 19 Horsham Maryborough 8 Seymour Ararat 15 7 3 Ballarat 11 Hamilton 10 Bairnsdale 17 Warragul 9 Sale 1 12 20 Geelong 2 Portland 22 18 Traralgon Warrnambool 6 5 4
City-wide projects > New trains for Melbourne commuters > Protective Services Officers station facilities > 50 new trams Key transport projects 1. M80 Ring Road upgrade 1 2. East West Link – Stage 1 11 3. Springvale grade separation 27 2 15 19 4 4. Mitcham grade separations 10 5. Regional Rail Link 5 9 17 8 26 6. Ormond grade separation 24 7. Murrumbeena grade separation 7 18 8. Glen Iris grade separation 6 3 9. Bayswater grade separations 21 10. Blackburn grade separation 11. St Albans grade separation 12 16 12. Dingley Bypass 23 13 13. Clyde Road upgrade 25 14. Hallam Road upgrade 14 15. Ringwood Station and interchange upgrade 16. Narre Warren-Cranbourne Road upgrade 17. Port capacity expansion project 22 18. Stud Road upgrade 19. Melbourne Metro Rail Tunnel 20. Port of Hastings development 20 21. Southland Station 22. Frankston urban renewal 23. Bayside rail improvements 24. Syndal station car park 25. Cardinia Road upgrade Underway 26. High Street Road upgrade 27. Sunshine grade separations Commence soon Planning
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East West Link – Stage 1 Improving the way we Wider benefits for move around Melbourne the community The East West Link will transform Public transport is a major user of the way people move around > Travelling between the Eastern Victoria’s roads. In Melbourne, for Melbourne in a way not seen since Freeway and CityLink could take example, more than 80 per cent of the construction of CityLink. as little as 7 minutes, and save on public transport (bus and tram) average around 15 to 20 minutes kilometres are travelled on roads. In the 2013-14 Budget the Government for trips across the north of the The East West Link project is expected has provided funding to commence CBD in comparison with current to deliver public transport benefits, procurement and delivery of the East journeys. with more reliable services and faster West Link – Stage 1. This project will > Commuters will bypass 16 sets travel times for users of some of provide an approximately six kilometre of traffic lights. Melbourne’s busiest north-south tram freeway-standard link between the routes to the CBD. Eastern Freeway at Hoddle Street and Without a major improvement in CityLink at Parkville. The project is connectivity between the major The East West Link will allow greater the first stage of the Government’s metropolitan freeways, there will be priority to be given to enhanced longer‑term commitment to the more congestion on the city’s roads. north-south tram and bus services, East West Link as a whole, a planned It will be harder for people to get to cycling routes and pedestrian 18 kilometre road link, which will work, for businesses to access suppliers movements by reducing the volume connect the Eastern Freeway at and customers, and for freight to of through traffic on local streets and Hoddle Street with the Western Ring move more efficiently to markets. arterial roads. Road in Sunshine West. Congestion is an immediate issue The areas in the inner north are among The 2013-14 Budget provides funding for all Victorians. Even with strong the fastest growing areas of the central capacity to deliver East West Link – increases in public transport investment, city. Stage 1 of the project will support Stage 1, which has an estimated Melbourne faces the daunting task and enhance this growth by increasing capital cost of between $6 and $8 billion. of managing at least an additional liveability and amenity of the inner The majority of the project is proposed 3 million car trips per day by 2031. north, by making it easier for people to be a tunnel to minimise any social, to move around their area and reducing visual, noise and environmental impacts. Minor incidents on the Monash Freeway the intrusion of traffic congestion on and CityLink cause gridlock across communities. The statutory planning process for Melbourne with cross-city traffic spilling Stage 1 is already underway and the over onto roads which are at or near The Government’s vision for the project is expected to go to market for full capacity. East West Link project includes procurement by late 2013. Construction improving public transport, leveraging is expected to commence in late 2014, The East West Link will ultimately urban renewal opportunities and and a construction period of 5 years provide additional capacity and reduce supporting sustainable communities and is anticipated. reliance on the West Gate Bridge and land use development. The $6 to $8 billion M1 Corridor. This cross-city alternative estimated capital cost of Stage 1 of the As a nation-building piece of major will alleviate congestion and improve project includes some provision for infrastructure, a funding contribution travel time reliability for families and investment in public transport and of $1.5 billion from the Commonwealth business. The East West Link will urban amenity improvements along the Government will be required to help give business the certainty it corridor. Opportunities to enhance ensure the timely delivery on this needs to continue to invest in Victoria, streetscapes, pedestrian networks and transformational infrastructure project. promote productivity and enhance community facilities are just some of the Victoria’s liveability. The project is expected to be delivered amenity improvements that may flow as a public private partnership, from the East West Link. As part of the with financing sourced from Victorian Benefits for business Stage 1 of the project the Government Government, Commonwealth The East West Link will better will work with the community to Government and private sector connect businesses in Melbourne’s consider options for public transport contributions. Toll revenue is south east with Melbourne Airport. and urban amenity improvements. expected to partly defray the costs It will also ultimately complement the of the project over the longer term. increased container capacity planned for the Port of Melbourne and will The Government is also investigating provide a bypass of Melbourne for opportunities for some early works regional freight, helping to reduce and complementary projects which costs for regional exporters. could commence earlier than this to provide additional benefits. The East West Link will also benefit local businesses by providing better access to jobs and contributing to increased productivity by improving travel times and reliability, lowering travel costs and supporting growth in the business sector.
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Continuing to link up Melbourne – East West Link
Ormond Rd
Mount Alexander Rd Brunswick Rd
Epsom Rd
High St
Duke St
Holden St Victoria Rd Ballarat Rd
Ascot Vale Rd Westgarth St Forrest St
Anderson Rd Ballarat Rd Rosamond Rd Heidelberg Rd Racecourse Rd Lygon St
Nicholson St South Rd Flemington Racecourse Queens Pde Flemington Rd Wright St Eastern Fwy Macaulay Rd Hampshire Rd
Gordon St
Royal Pde Johnston St Sunshine Rd Barkly St Kensington Rd
Dynon Rd Studley Park Rd
Hoddle St
Victoria Pde Eastern Section Geelong Rd
Fairbairn Rd Footscray Rd Stage 1 – Eastern Section Somerville Rd Stage 1 – Eastern Section (tunnel)
Whitehall St
CityLink Western Ring Rd Ring Western CBD Eastern Section
Western Section Western Section Princes Hwy Western Section (tunnel)
Millers Rd West Gate Fwy Lorimer St Cemetery Rd Western Section – additional roadworks Map not to scale City Rd
Delivering on the first stage of East West Link > The Coalition Government is committed to delivering the full East West Link, which is an 18 kilometre freeway‑standard road from the Eastern Freeway to the Western Ring Road. > The scale and complexity of the project means it will be delivered in stages. > The first stage of the project is the Eastern Section, a 6 kilometre link from the Eastern Freeway in Clifton Hill to CityLink in Parkville. > The section will be predominantly in tunnel to minimise social, visual, noise and other environmental impacts. > The first stage will also provide for transport and urban amenity improvements along the corridor, including public transport initiatives and initiatives to address congestion on adjoining roads. > Construction on the first stage is expected to commence in late 2014 with a construction period of approximately 5 years.
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Ormond Rd
Mount Alexander Rd Brunswick Rd
Epsom Rd
High St
Duke St
Holden St Victoria Rd Ballarat Rd
Ascot Vale Rd Westgarth St Forrest St
Anderson Rd Ballarat Rd Rosamond Rd Heidelberg Rd Racecourse Rd Lygon St
Nicholson St South Rd Flemington Racecourse Queens Pde Flemington Rd Wright St Eastern Fwy Macaulay Rd Hampshire Rd
Gordon St
Royal Pde Johnston St Sunshine Rd Barkly St Kensington Rd
Dynon Rd Studley Park Rd
Hoddle St
Victoria Pde Eastern Section Geelong Rd
Fairbairn Rd Footscray Rd Stage 1 – Eastern Section Somerville Rd Stage 1 – Eastern Section (tunnel)
Whitehall St
CityLink Western Ring Rd Ring Western CBD Eastern Section
Western Section Western Section Princes Hwy Western Section (tunnel)
Millers Rd West Gate Fwy Lorimer St Cemetery Rd Western Section – additional roadworks City Rd
Investment Why East West Link? > Total capital cost of the program of works > Melbourne’s cross-city connectivity for the first stage is estimated at between is constrained. $6 to $8 billion. > The only major east-west route across the city, the > The 2013-14 Budget makes provision for M1 corridor, is operating at or close to capacity. delivery of the first stage, allowing for > Daily queues and congestion where the Eastern some private financing and $1.5 billion of Freeway terminates at Hoddle Street. Commonwealth funding. > East-west traffic is forced onto residential > Funding of $294 million has been provided streets in the inner north and inner west. over the next 2 years to complete detailed > The city’s busiest tram routes through the inner planning, and commence procurement and north to the CBD are becoming less reliable early works construction. due to congestion caused by east-west traffic. > The project road will be tolled, however > Constrained connections to and from the tolling revenue will not recover the full cost. city’s major economic gateways and freight Therefore, significant investment is required destinations (such as Melbourne Airport and by the State and Commonwealth Governments, the Port of Melbourne) restrict business and and the private sector. freight movements. > The Coalition Government will engage with > Population growth in Melbourne, in particular communities regarding the preferred corridor in the west and north, will continue to place and the needs and concerns of local pressure on cross‑city routes. communities.
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Transport services (cont)
Improving our roads Metro level crossing blitz Level crossings removal The Coalition Government is making Metro level crossings are notorious for major investments in road infrastructure. local commuters and pedestrians who already underway Through building new roads and use surrounding roads, because of the > Springvale Road, Springvale; improving existing ones, Victorians traffic jams, delays, and the safety > Mitcham Road, Mitcham; hazards they pose, particularly during have better access to work, home as > Rooks Road, Mitcham; and well as goods and services. These peak hours. > two level crossings on Anderson investments are also laying the foundations For instance, at many locations boom for urban development in both Road, Sunshine as part of the gates at level crossings can be closed Regional Rail Link project. metropolitan and regional Victoria. for more than 50 minutes of the two-hour peak period and by Removal of these level crossings Improving the condition eliminating these level crossing the is expected to be completed by and safety of our roads Coalition Government is relieving late 2014. The Coalition Government is investing: congestion delays, reducing individual This budget > to deliver the $1 billion, 10 year road user trips times and making Funding will allow early works Road Safety Strategy (2013‑22), them safer for pedestrians. or planning to commence on a incorporating the existing Safer The Government has committed to further seven level crossings: Roads Infrastructure program; the removal of 12 metropolitan level > North Road, Ormond; > $90 million over three years to crossings. This work is substantially restore parts of Victoria’s arterial underway with three level crossing > Main Road, St Albans; road network; removals at Springvale Road, > Blackburn Road, Blackburn; > $80 million over two years for Springvale, Mitcham and Rooks Roads, > Mountain Highway, Bayswater; Mitcham, as well as two in Sunshine priority maintenance works to > Scoresby Road, Bayswater; ensure safe and efficient operation as part of the Regional Rail Link project > Burke Road, Glen Iris; and of the road network; and expected to be completed by the end of the Government’s first term. > Murrumbeena Road, > $32 million for maintenance of the Murrumbeena. West Gate Bridge over four years, Building on the $367 million provided ensuring the longevity of this over the past two years, the important asset. This is in addition to 2013‑14 Budget commits an additional $32 million of Commonwealth funding, $52 million to progress planning or bringing the total to $64 million. early works for the removal of a further seven crossings through the Metro Level Crossing Blitz program.
Removing railway level crossings
South Morang Craigieburn Hurstbridge Upfield
Flemington Coburg Racecourse Sunbury
Main Road St Albans Clifton Hill
Lilydale Melton City Sunshine Footscray BlackburnMitcham/Rooks Road Roads Loop Camberwell Ringwood Anderson Road Newport Mountain Highway Burke Road Scoresby Road Williamstown Alamein Caulfield Belgrave Murrumbeena Road Werribee PORT North Road PHILLIP Glen Waverley
Springvale Road Sandringham
Cranbourne Pakenham
NORTH
Stony MAP NOT TO SCALE Frankston Point Effective 28 April 2013
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Improving arterial roads, easing congestion and ensuring Melbourne thrives. This budget provides: > $8.7 million for the upgrade of Cardinia Road, between Princes Highway and Pakenham Bypass in Cardinia Shire; and > $15 million for the High Street Road improvement project, between Stud Road and Burwood Highway, Wantirna South. This builds on previous investments, including $156 million for the construction of the Dingley Bypass and $13 million to upgrade Stud Road between Boronia Road and Mountain Highway.
Using technology to improve our freeways > $101 million for the duplication Major investment by the Government will of the Western Highway from reduce congestion on the State’s roads. The Government is using the latest Ballarat to Stawell; and technology to ensure optimal operation of our freeways and reduce > $6 million to upgrade rest travel times for freeway users. Subject areas along the Hume Freeway to a commitment of funding from with additional truck parking the Commonwealth, the Government spaces and improved amenities. will provide $10 million in 2013-14 This budget builds on the for the Managed Motorway Program. Government’s strong record of This program will install a range of investments and provides: traffic management devices along the > $6.6 million to seal the remaining section of the Monash Freeway between section of the Omeo Highway High Street, Glen Iris and Warrigal between Gippsland and north eastern Road, Chadstone to improve traffic flow Victoria, bringing the total investment and reduce travel times for people and up to $15 million; and businesses. Victoria is a world-leader in freeway management with the > an additional $10 million to progress installation of state-of-the-art devices the Kilmore-Wallan Bypass, which as part of this project, including variable will relieve congestion and heavy speed limit signs, CCTV cameras, and vehicle movements through the supporting IT infrastructure. townships of Kilmore and Wallan.
Improvements for rural and regional Victorian roads The Government is building a better future in regional and rural Victoria by fixing country roads and infrastructure, improving safety and access, and building new links to revitalise and grow our regions. Projects underway or completed in regional Victoria include: > the $66 million Koo Wee Rup Bypass; > $38 million for the Ballarat Western Link Road; > $16 million for overtaking lanes on the Strzelecki Highway and Hyland Highway and the Melbourne‑Lancefield Road;
DTF006_L_BIP2_INTERNALS(FA3).indd 15 4/05/13 8:12 PM 16 > 2013-14 Budget Information Paper No.2
Transport services (cont)
Transforming the passenger rail experience
Features of Regional Rail Link > Capacity for an extra 23 metropolitan and 10 regional services during peak periods. > Impr oved links between Melbourne’s west and the city centre, making the western region more attractive to businesses and employees. > T wo new railway stations at Wyndham Vale and Tarneit. > W est Footscray Station will be relocated and rebuilt, and Sunshine Station will receive a major upgrade. > Removal of two level crossings on Anderson Road, Sunshine.
The Government is transforming When the Coalition Government came Above: Artist’s impression of the new station regional and metropolitan rail services to office, this project was inadequately at Wyndham Vale as part of the Regional Rail by delivering the Regional Rail Link funded, and no rolling stock had been Link project. project with enhanced scope and costed into the overall project budget. oversight from Government. The Government has taken decisive action to reconfigure the project, and The $4.8 billion Regional Rail Link bring the project back on track. project is a vital piece of infrastructure for the booming western suburbs, The Coalition Government has also regional Victoria, and for passengers invested an additional $261 million in across Melbourne’s rail network. 40 new regional carriages and associated It is an important foundation for infrastructure, to improve the capacity future growth in capacity and and frequency of trains for passengers reliability of Victoria’s train network. on country lines. Through building dedicated regional Under the reconfigured scope, the tracks from West Werribee Junction to Government provided funding for two Southern Cross Station this landmark additional rail grade separations at project will remove major bottlenecks in Anderson Road, Sunshine. Removal of Victoria’s rail network. When complete, these level crossings will ease congestion passengers on the Geelong, Bendigo and improve safety for both road and rail and Ballarat lines will have a journey, passengers. Tenders have been let and uninterrupted by metro trains, through work is now substantially underway. the metropolitan system with more reliable and more frequent connections to central Melbourne to get them to and from the city for work, study, business and recreation.
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Railway stations > pr ovision for a new railway station Increasing capacity The Government is improving the adjacent to Southland Shopping and quality Centre on the Frankston line. experience of train users by building The Government is committed to This project is subject to negotiation new stations and upgrading existing delivering a modern fleet of passenger with the owners of Southland stations to increase access to services, rolling stock for Victoria’s metropolitan Shopping Centre; improving passenger safety and and regional train and tram networks, amenity and ensuring integration > additional funding in this budget to provide improved passenger amenity with local services. This includes: of $17 million for a new Grovedale and meet the needs of growing patronage. > $100 million in this budget for Station, bringing the total investment The Government has announced Bayside rail improvements that to $26 million. This project will its commitment of an additional will deliver a range of important increase connectivity between $176 million for the procurement infrastructure to improve services residents and commercial centres, of a further eight new X’Trapolis and station amenity for train education and essential services, trains to be fitted out by a local train passengers on the Frankston line, delivering productivity improvements manufacturer Alstom in Ballarat. including provision of improved for existing and new residents of This complements the $210 million shelter, disability access and Greater Geelong; provided in the 2011-12 Budget to passenger information displays. > $68 million for construction of station purchase seven trains, four of which Funding will also provide facilities for Protective Services are now in service. Funding of infrastructure to enable X’Trapolis Officers at metropolitan train stations $2 million is also provided to develop a trains to run on the Frankston, to provide Protective Services Officers high capacity train procurement strategy Werribee and Williamstown lines; with the facilities to support their task to underpin design and delivery of a of protecting public transport users; > $14 million in this budget for the new generation train that meets the Frankston transit interchange > $7.3 million in this budget for specific requirements of Melbourne’s improvement project, building on Epsom Eaglehawk rail improvement. metropolitan train network. the Government’s previous This includes a new railway station In addition, 50 new low-floor trams investment of $5 million which at Epsom and renovation of Eaglehawk are currently being built to ensure trams has delivered strategic Station. This investment will support remain an iconic part of Melbourne plans for the Frankston city increased opportunities for population for years to come. The new trams are centre’s future development; growth and investment in outer being built by a local manufacturer in Bendigo, and ensure regular train > a substantial upgrade of the Dandenong, and will boost the capacity services to the northern parts of the Ringwood Station and the bus of the tram network and provide an City of Bendigo; and interchange that will deliver a more improved tram ride for passengers. accessible, safer and integrated > $10 million in this budget for the The new trams will carry around transport hub for Ringwood. construction of a new multi-storey 210 passengers, will have a low floor More than a transport project, car park at Syndal Station to provide to provide easier access to level access this is a community revitalisation an increase of 250 spaces. tram stops, be fully air-conditioned and economy boosting project, to improve passenger comfort and complementing significant private safety and will have state-of-the-art sector investment to revitalise audio and visual announcements the Ringwood station precinct to update passengers on the current and generate 2 000 construction location and the next stop. and 2 000 ongoing retail, hospitality and service jobs;
Bombardier in Dandenong is producing 50 new E Class trams.
DTF006_L_BIP2_INTERNALS(FA3).indd 17 4/05/13 8:12 PM 18 > 2013-14 Budget Information Paper No.2
Transport services (cont)
Enhancing freight capacity This budget provides $110 million within one to three years and will either for the planning, development and increase capacity on the network or Melbourne is the hub for interstate approvals necessary for procurement enhance the efficiency of existing and export freight movements. and construction of an expanded infrastructure. The Transport Solutions The Port of Melbourne handles around Port of Hastings by 2025. investment will increase productivity 36 per cent of Australia’s container for Victoria’s key industries, particularly The Port of Melbourne’s $1.6 billion trade, making it the nation’s largest the State’s manufacturing, agricultural Port Capacity Expansion Project container and general cargo port. and resources sectors. will redevelop Webb Dock East, With a significant increase expected provide a new automotive terminal in container throughput in Victoria, at Webb Dock West, and will facilitate providing additional container port an expansion of Swanson Dock, capacity will enable efficient handling all of which will result in an increase of increased container trade and in the container and automotive will generate more competition terminal capacity within the Port of and economic flow-on benefits for Melbourne precinct. all of Victoria. These two projects will ensure that The development of the Port of Victoria remains at the centre of Hastings is critical for the future of Australia’s international freight sector. the growing freight trade, an integral part of the Victorian economy, and Transport Solutions is a $24 million a necessary step in maintaining the suite of infrastructure upgrade projects viability of the sector beyond the funded in this budget. The projects next decade. The development will main focus is on roads that fix relieve economic bottlenecks and bottlenecks affecting key agricultural congestion while also growing jobs industry supply chains in Regional in regional Victoria. Victoria. All of these projects are low cost projects that will be delivered
Left: The Port of Melbourne is undertaking a major capacity expansion project which includes redevelopment of the Webb Dock precinct.
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Planning for the future Melbourne Metro Rail Tunnel The Government is continuing to plan to address the transport challenges
to be faced by the Melbourne of the future. Legend This includes future transformational Royal Pde Roads Parkville Freeway
SwanstonGrattan St St projects, infrastructure upgrades and Dynon Rd Existing stations
Queensberry St Existing rail expanding the capacity of the network. Arden Victoria St Melbourne CBD
Hoddle St CBD North Parks Footscray Rd This budget includes $10 million in Swanston St Proposed underground rail LaTrobe St
Proposed underground station CBD CBD South 2013-14 to continue planning and King St Spencer St development of the Melbourne Metro Portal CITYLINK MCG Rail Tunnel, a city-shaping project of Church St a similar size and scale to Melbourne’s City Loop 40 years ago.
Domain Domain Rd The Melbourne Metro Rail Tunnel will St Kilda Rd connect the Sunbury and Dandenong Toorak Rd rail lines by a 9 kilometre rail tunnel Punt Rd Commercial Rd through the CBD, with five new stations at Arden, Parkville, CBD North, CBD N
South and Domain. The project will Port Phillip Bay Dandenong Rd
Chapel St Chapel result in capacity for over 20 000 Rd Orong additional passengers per hour across the metropolitan rail network. The Melbourne Metro project will also provide the core network capacity to the Government will identify an enable the expansion of Melbourne’s appropriate pilot location to test key rail network in the future, including features of High Capacity Signalling projects such as the Rowville Rail Link, technology in the Melbourne Doncaster Rail Link and Melbourne metropolitan environment. Airport Rail Link. This Government will ensure that Victoria The Victorian Government is committed not only has a more reliable transport to ensuring that it plans and scopes system in the short term, but is also projects properly, to improve efficiency identifying transport network corridors and reduce costs to Victorian taxpayers. for the medium to long term. Corridors The Government has provided funding that have already been investigated in this budget to develop a pilot for include: high capacity signalling on Melbourne > Doncaster Rail Link Study – a metropolitan rail network. High capacity feasibility study into the potential signalling is a longer-term project which for a rail link to Doncaster; will bring Melbourne’s rail network > Rowville Rail Link Study – a feasibility into the 21st century, and address study into the potential for a rail link faults currently experienced by using to Rowville; and the ageing signalling system. This project will increase the capacity of > Melbourne Airport Rail Link – a Melbourne’s metropolitan train network. feasibility study into a new rail link Through funding further development, with a preferred option of a centrally located terminal at Melbourne Airport. Above: Artist’s impression of Melbourne Metro at Parkville and also Swanston Street.
DTF006_L_BIP2_INTERNALS(FA3).indd 19 4/05/13 8:12 PM 20 > 2013-14 Budget Information Paper No.2
Health services
Artist impressions of the Box Hill Hospital redevelopment.
> The Coalition Government is securing Victoria as a state with a world-class health system. > We are investing in health care facilities at a local level to address current demand pressures and expand capacity to meet future growth. > More specialist services across the State mean that Victorians can access the health services they need where they need them – in their local area. These investments include the Werribee Mercy Hospital mental health expansion and the western region dental service redevelopment. > The Government is also planning for the future with support for innovation and research that will lay the foundations for a leading global health system for the future of Victoria.
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A world-class health system Transforming the delivery > $29 million for the Northern Hospital Inpatient Capacity Expansion will The Victorian health system is of health provide an additional 32 beds to recognised as a national leader in The 2013-14 Budget provides over accommodate the health needs of the terms of responsiveness, service $650 million for Victoria’s hospitals growing northern region. The proposed integration, quality of care and and health system. Victoria already project design has been future-proofed innovation. High quality, modern has a number of leading health care to cater for expansion; hospital assets are crucial to achieving facilities, including the Royal Women’s > $35 million in this budget for the the right level of service improvements and Royal Children’s Hospitals. To Werribee Mercy Hospital Mental and meeting future demand. The complement these, the Government has Health Expansion that will deliver a Coalition Government’s investment in a substantial program of infrastructure 54 bed acute mental health facility, health services continues to build works underway, which will improve including 25 additional beds; Victoria’s position as the state with Victorian health services and provide the strongest health, science, medical opportunities for world-class research > the Box Hill Hospital Redevelopment, research and technology sectors. and innovation. These projects will which will a deliver a $448 million state-of-the art hospital designed to A growing and ageing population, assist Victoria in achieving a world-class meet the growing demand for health increasing service demand, rising health system for today and tomorrow. services in Melbourne’s east; costs of health care, increased Highlights of the health services expectations of health consumers infrastructure investment program > the $630 million new Bendigo and the growing prevalence of chronic include: Hospital, which will provide 21st century facilities – including an disease all place pressures on the > Over $400 million in project funding integrated cancer centre – to enable capacity of the system to deliver for the new Monash Children’s the hospital to improve patient care, high quality health care. To meet Hospital and the Royal Victorian Eye develop a skilled health workforce this demand, the Government is and Ear Hospital. Redevelopment will for the future, improve operational continuing to invest in local upgrades enable families to access specialist efficiency and provide for the health and new hospitals. paediatric services closer to where needs of a growing population; and The Coalition Government’s investment they live and provide facilities to > construction of the $1 billion Victorian in health infrastructure is doing more further advance Victoria’s reputation Comprehensive Cancer Centre, which than helping Victoria match current as research, innovation and training will be the largest cancer research service demands. It is also investing in leaders in these specialities; facility in Australia and one of the top significant health projects that enable > $50 million in this budget for the 10 cancer research centres globally. research and innovation that will Waurn Ponds Community Hospital, secure Victoria’s world-class health a new 32 bed community‑based system into the future. specialist day medical and day surgery centre in Waurn Ponds which will meet growing demand in Geelong and the Surf Coast Shire;
The new Monash Children’s Hospital in Clayton will complement the Royal Children’s Hospital in Parkville (left).
DTF006_L_BIP2_INTERNALS(FA3).indd 21 4/05/13 8:12 PM 22 > 2013-14 Budget Information Paper No.2
Health services (cont)
Better meeting health Advancing our State-of-the-art facilities needs of children and international reputation Box Hill Hospital their families Royal Victorian Eye and Ear redevelopment Monash Children’s Hospital redevelopment The $448 million Box Hill Hospital Hospital in Clayton The Royal Victorian Eye and Ear redevelopment will deliver a state‑of‑the‑art hospital with more The Monash Children’s Hospital Hospital will be redeveloped, setting the hospital up for the than 600 beds and additional will allow families in the south east services, representing an increase and the Mornington Peninsula and next stage in its exciting future. The upgrade to the biggest of more than 200 beds. The project Gippsland to access specialist will be the single largest suburban paediatric services closer to where provider of ear, nose and throat health services in the State will health infrastructure project they live. The new Monash designed to meet the growing hospital will have 230 beds for enable the hospital to care for more patients each year for these demand for health services in the growing south east population Melbourne’s east. Box Hill residents including services for paediatric, services. The project will assist Victoria’s growing and ageing and the wider community will now children’s cancer, intensive care, benefit from a modern, innovative children’s mental health, and population that will require greater specialist services to treat the and technologically advanced neonatal intensive care. This new health care facility providing hospital will also complement the increasing number of Victorians with glaucoma, cataracts and health services for Melbourne’s new Royal Children’s Hospital. east. The project hit a historic Construction will commence in macular degeneration. It will also include improvements to on-site milestone in November 2012 when 2014 and is expected to be the Government announced that completed in late-2016. teaching, training and research facilities – enabling Victoria to an extra floor would be added to This initiative delivers on the capitalise on its world-class the new hospital. The extra scope Government’s election commitment leadership in eye and ear research. was achieved through project to fund a new purpose-built savings and better-than-forecast paediatric hospital at the Monash The project is expected to be market conditions, and will be Medical Centre in Clayton. completed in late 2017. delivered within budget. The new hospital is expected to be completed in 2015.
The $448 million Box Hill Hospital redevelopment is to be completed in 2015.
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Meeting the demand for health services in Melbourne’s growth corridors The Government is investing in infrastructure to ensure high quality health services expand to meet the needs of an expanding Victorian community. More health services in growth areas mean that Victorian people can access a greater range of acute health care, as well as specialist care, closer to home. In this Budget, the Government is funding a number of projects to meet increased demand in Melbourne’s growth corridors. Current demand for acute health services exceeds available capacity at the Northern Hospital in Epping due to historically high population growth. Funding of $29 million will build on the expansion of the emergency department and special care nursery funded previously for a new building at the existing site including 32 beds. In line with its election commitment, the Government will also deliver the $50 million Waurn Ponds Community Hospital, with a new 32-bed community-based specialist day medical and day surgery centre in Taking health to a Waurn Ponds to meet growing demand new level in Bendigo in the Geelong and Surf Coast shires. The new Bendigo Hospital will The current health system is not provide Bendigo and the Loddon optimised to provide integrated, Mallee Region with a new cost-effective and patient-centred care. integrated cancer centre, a new To address this, the Government is mental health unit, as well as providing funding of $18 million for a 372 beds and 10 operating theatres. new community-based ambulatory care Twenty-first century facilities will centre. This project will give patients enable the hospital to deliver more timely and convenient access to improved patient care according to The new Bendigo Hospital project will health services. The project will develop recognised best practice, develop a deliver a world class hospital for Bendigo. a health and medical precinct that is skilled health workforce, improve scaled to local area planning needs operational efficiency and provide and current and forecast population for the health needs of a growing requirements. The integrated service population. The project will be model – which combines primary and delivered by a public private secondary services – will focus on partnership. The new Bendigo illness prevention, chronic disease Hospital will further improve the management, and out-of-hours urgent liveability in this important regional care. The Government will partner centre, attracting medical specialists with private sector providers to deliver and boosting the collaboration with this initiative. the La Trobe University. A preferred bidder was announced this year, and construction is expected to start in mid-2013, and the new hospital built by the end of 2016.
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Health services (cont)
Upgrading health care Key Government projects that have at a local level contributed to the upgrade of Getting back on track – Victoria’s health system include: the Numurkah Hospital It is not just the ‘big headline’ projects > $18 million to re-establish acute that make a big difference. The services at Numurkah hospital reinstatement Government is also focused on which was severely damaged by The Numurkah Hospital was improving local health facilities and floods in 2012; damaged extensively in the making sure existing infrastructure March 2012 floods, causing > $50 million in this budget for the and equipment is well maintained. evacuation of all acute patients Waurn Ponds Community Hospital; This investment includes providing to emergency accommodation. infrastructure to accommodate acute > a further $10 million to establish care and specialist care services across radiotherapy services in south west This year, the Government will Melbourne and in regional and rural Victoria, with Commonwealth and co-fund the re-establishment of a areas. Maintaining and expanding private funding required to complete range of acute health services at health care at a local level ensures the project; the hospital. The new purpose-built facility will include 22 beds. The all Victorians have access to quality, > $9.7 million towards Western reinstatement of acute services to appropriate health services that are Region health centre’s dental the Numurkah community will better and closer to home, with service redevelopment in Footscray, improve access to health services quicker emergency response times. which will enhance the provision and deliver operational efficiencies. of dental services for the inner The Government has invested in The hospital is the largest employer west metropolitan area; significant upgrades of rural and in the district, so this project will regional hospitals across the State. > critical care capacity expansion, be a significant boost to the local These upgrades address previous which provides for an expansion community. neglect of health infrastructure – of the capacity in Victorian public which resulted in ageing facilities hospitals and laboratory equipment that were unable to cope with health for public health services – to support care needs of Victorians. up-to-date medical equipment to metropolitan and rural health facilities In this budget, the Government will across Victoria; build on its program to upgrade the quality of hospitals and medical > a $35 million redevelopment and equipment across the state, investing expansion of the Werribee Mercy $78 million in rural and regional areas. Hospital mental health facilities, through the provision of a new 54 bed hospital facility, providing an increase of 25 beds. This will increase local access to mental health services in this growing region; and > $60 million to replace and improve medical equipment and statewide infrastructure.
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Snapshot: Hospital infrastructure upgrades As part of the Government’s substantial health infrastructure program, the following projects have previously been funded for major upgrades: > Ballarat Hospital – additional beds, ambulatory care and helipad ($46 million); > Olivia Newton-John Cancer and Wellness Centre ($72 million); > Charlton Hospital ($23 million); > Geelong Hospital ($130 million); > Echuca Hospital redevelopment ($40 million); > Kilmore and District Hospital redevelopment ($20 million); and > Frankston inpatient expansion and emergency department redvelopment ($76 million). A number of other hospitals throughout Victoria have also received funding for upgrades, including: > Swan Hill Hospital ($18 million); > Kerang District Health Aged Care ($18 million); > Sunshine Hospital critical care services ($15 million); > Mildura Base Hospital ($5 million); > Warragul Hospital ($2 million); > Castlemaine Hospital ($10 million); and Further upgrades funded in 2013-14: > Werribee Hospital Mental Health The first stage of the redeveloped Expansion ($35 million); Warrnambool Hospital opened in 2011. > Western Region Health Centre – Dental Service Redevelopment ($9.7 million); > Radiotherapy services for south west Victoria – Warrnambool ($15 million which includes $5 million allocated in the 2012-13 Budget ; and > Securing our health system: Medical equipment and statewide infrastructure replacement program ($60 million), building on the $115 million committed in previous budgets.
DTF006_L_BIP2_INTERNALS(FA3).indd 25 4/05/13 8:12 PM 26 > 2013-14 Budget Information Paper No.2
Infrastructure for Victoria as a learning community
> The Coalition Government’s strategy of a top-tier education system for the State includes significant investment in high-quality school infrastructure. > This year, investment of $203 million will support growth and planning for tomorrow through the construction of new schools in growth areas, school modernisations and securing land for building schools in the future.
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High quality school Highlights include: Upgrading Schools infrastructure to support > $74 million has been directed to the construction of new schools in both Since coming into office, the a top-tier school system regional and metropolitan Melbourne, Government has upgraded High quality infrastructure is important including Torquay Secondary College, 59 schools. This includes to support the Government’s objective Point Cook South East P-9, and Doreen modernisation, regeneration, to lift the performance of Victoria’s South Primary School; planning, minor works, and students into the global top tier in the > over $100 million in school refurbishments. Schools that next ten years. To achieve this bold regeneration; have received upgrades include: objective, the Government is investing > $138 million for school > Colac Secondary College in school infrastructure to cater for a modernisation programs; (Stage 3); number of challenges. > more than $25 million for minor > Dandenong High School In some of Melbourne’s new and works and refurbishments for (Stage 3); growing communities, there is limited Victorian schools; > Pembroke Secondary College choice of government schools, > over $60 million to date has been (Stage 2); with many existing schools in these directed to identifying and providing > Ashwood Secondary College; communities at or near enrolment solutions for growing areas needing capacity. Students in growing > Bairnsdale Secondary College; additional education providers, areas often have to travel outside > Boronia K-12 College; including acquisition of land across their local areas to ensure access Victoria for the construction of new > Galvin Park Secondary College; to school services. schools; and > Phoenix P-12 Community These areas will require new schools > in its first budget the Government College; and to meet the forecast enrolment demand provided the largest single year > Wodonga Senior Secondary as communities expand or are created investment in special and autistic College. to respond to population increases. schools in over a decade, with over This budget will provide: Other school communities face either $41 million for the regeneration excess or insufficient infrastructure and modernisation of schools in > $56 million for new schools in levels based on these projections. Broadmeadows, Horsham, Wantirna growth areas, including new schools in Wyndhamvale South From the 2011-12 Budget the Heights, Rosamond and the Northern (P-6), Truganina (P-9), Melton Government has invested over School for Autism. This funding was North West and Doreen (SC); $408 million in Victorian school also provided towards a new special infrastructure. This includes delivering school at Officer ($15 million) and the > $24 million for acquisition of on its election commitments to upgrade Western Autistic school ($10 million). land for future new schools; government schools, investing in > $5 million for new relocatable Melbourne’s growth areas and regional classrooms; and Victoria, providing infrastructure to > $118 million for planning school support vulnerable children, and refurbishment and modernisation. securing the future education needs of Victorians.
DTF006_L_BIP2_INTERNALS(FA3).indd 27 4/05/13 8:12 PM 28 > 2013-14 Budget Information Paper No.2
Infrastructure for Victoria as a learning community (cont)
Melton North West Primary School A new primary school in Melbourne’s west will provide a modern education facility for the local community of Melton West. The school will offer a local education option for families and will further enhance the area as a community precinct. The City of Melton is one of the fastest growing municipalities in Victoria, with its population having doubled between 2001 and 2012 and a reported 42 babies being born a week in 2011-12. This fast growth is placing great pressure on existing education facilities. The new school will ease growth pressure at Wedge Park Primary School, where the student Innovations to support population has boomed to just education infrastructure over 700 students. There may be opportunities for private The Government will work with investment to support education Melton City Council to identify infrastructure. Innovative procurement opportunities for shared use of opportunities, such as public private facilities in the community precinct. partnerships, will be explored as part It is envisaged that the school of a new, efficient asset management will be used by the community and investment model to meet out of school hours, whilst students demand growth in the long term. will have access to the recreation reserve, facilitating an active The Government is exploring Research confirms that there is a direct relationship between the design, quality and community precinct where facilities opportunities for non-government education providers to express interest layout of physical learning environments are shared and utilised by the and improved educational outcomes. whole community. in purchasing and using vacated school and other educational sites. The State currently holds around 200 such sites. While some of these sites are located in areas of declining numbers of school‑age children, others may offer potential for new schools. The Government will explore opportunities for non-government education providers to express interest in purchasing and using vacated school and other educational sites.
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Refocusing skill‑building To ensure that every Victorian is provided with the chance to access in Victoria quality training opportunities the The Government is building a Government has established a modern vocational training system TAFE structural adjustment fund of that has more people gaining the $200 million over four years to support skills they need to get a better job. innovation and structural reform in the To do this, the Government is TAFE sector. Of this, $100 million will developing a training system that: be provided to assist TAFEs without > provides for as many people as sufficient financial reserves to invest possible to develop skills that in infrastructure solutions that will lead to real and sustainable jobs; position them to be more financially independent. > gives people confidence that getting a qualification will lead This follows the Government’s record to a more certain future; boost of $1 billion to vocational education > gives businesses and industry and training in the 2012‑13 Budget. confidence that they can access Victoria’s reforms have resulted in skilled people; an increase in students enrolled in > ensures that public resources Government-subsidised vocational are allocated effectively; and education and training. > is responsive to needs and Government‑subsidised enrolments preferences of different students, grew from approximately 380 000 in regions, and industries. 2008 to more than 670 000 in 2012. There has been strong growth in regional vocational training delivery and student choice, with a 46 per cent increase in student enrolments and 33 per cent increase in the number of providers offering courses in regional Victoria between 2008 and 2012. In addition, in 2012, total enrolments in government subsidised VET (including pre-accredited training) increased by 22 per cent.
DTF006_L_BIP2_INTERNALS(FA3).indd 29 4/05/13 8:12 PM 30 > 2013-14 Budget Information Paper No.2
Public safety and justice
Left: The $1.8 million Mooroopna Police Station was completed on time and on budget. The station became operational in February 2013.
Above: The new Yaapeet CFA Station opened in April 2013. The Government’s investment has provided the facilities firefighters need to keep the community safe.
> The Coalition Government is providing safer communities, completing works to support protective services officers on railway stations, and investing in upgrading CFA and police stations across the State. > It is taking strong action to grow the capacity of the prison system, providing funding to create 1 400 new male prison beds across the system since 2011-12. > Funding for police IT infrastructure will address immediate sustainability issues and planning for long‑term systems and process reforms.
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Building a safer community Protective Services Officers The 2012-13 Budget provided funding for a new 500-bed medium security All Victorians deserve to feel the at railway stations men’s prison at Ravenhall, and for a community they live in is safe and The Coalition Government has been further 395 beds to be provided through treats them fairly. Community safety has working to improve community the expansion of existing facilities. been a top priority for the Government safety on public transport. In 2011‑12, The Ravenhall Prison project is being since coming to office, with the $212 million over four years was delivered through the public private 2013‑14 Budget building on the steps allocated to deploy 940 protective partnerships framework. The private already taken to improve law and services officers (PSO) across the rail sector will design, build, finance, order and justice. This budget funds a network to patrol all metropolitan maintain and operate the prison facility. program of capital works to improve railway stations and four major regional This will ensure the prison is built and community safety and law enforcement railway stations (Ballarat, Bendigo, run in a way that delivers the best value through upgrades to police and Traralgon and Geelong) from 6pm for money for Victoria. The new prison emergency services facilities. At the until the last train. Subsequently, will also be built on a large footprint to heart of the Coalition Government’s $18 million was provided to upgrade a facilitate future expansion. strategy to tackle crime, violence and first tranche of 66 metropolitan stations anti -social behaviour is a focus to to accommodate deployment of PSOs. The Government will continue to deliver a stronger and more visible deliver its long-term plan to modernise This year’s budget provides a further police presence. and upgrade Victoria’s prison system by $68 million for capital works for providing an additional $45 million for upgrades at remaining railway stations. Police Stations 357 prison beds across the male prison Since coming to office, the Coalition Country Fire Authority system to accommodate demand, as Government has invested $104 million well as a new 40-bed unit at Barwon Funding was provided to the Country in new and upgraded police facilities Prison and infrastructure upgrades Fire Authority in 2011‑12 and 2012‑13 over three successive budgets. This for high security and management of to upgrade or replace 108 fire stations. underpins its election commitment to prisoners. This builds on previous The 2013-14 Budget provides an recruit 1 700 new police officers to investment and will continue to expand additional $56 million to replace or enhance frontline services. and modernise the corrections system upgrade a further 142 rural fire stations to ensure that appropriate facilities Achievements in relation to police include: over the next two years, which brings are in place to deliver a strong prison > new and upgraded police stations in Government’s investment to $118 system to support safer communities. the 2011-12 Budget for Ashburton, million and completes the election Forest Hill, Mooroopna, Heywood, commitment to build or upgrade Technology 250 stations. This investment will Paynesville, Mooroolbark and North Victoria Police is undertaking the Police ensure that the Country Fire Authority Ballarat/Sebastopol; Information Process and Practice reform has quality, up-to-date infrastructure > $25 million further funding in the program with a long-term view to reform throughout the State to support its 2013-14 Budget to complete new its information management systems critical emergency response activities. police stations in Sale and Somerville; and processes. The 2013‑14 Budget Since 2011-12, $8.8 million has also provides $10 million for Stage 1 of the > funding to acquire land and plan been provided for CFA communications program, which will address immediate for a new police stations at Emerald infrastructure, to ensure interoperability issues to maintain the performance of and the Essendon Operational and to address blackspots, and for core Victoria Police information systems Tactics and Safety Training Facility; volunteer support infrastructure. and commence the planning for > a new Waurn Ponds police station longer-term reform. This project will to include capacity to accommodate Prisons free up resources for frontline policing, the co-location of the South Barwon The Government has taken strong rather than tying up police with Victorian State Emergency Service action to ensure Victoria has the administrative paperwork. It will also headquarters; facilities in place to deliver a stronger, improve incident response. > a new police residence in Axedale; more adaptable prison system to and support safer Victorian communities, This budget also provides $3.3 million for systems upgrades to ensure that > extending the operations of the police committing over $700 million since Victoria State Emergency Service, stations in Mount Waverley and 2011-12 towards additional prison beds. Corrections Victoria, the Sheriff’s Carrum Downs from 16 to 24 hours. Additional prison capacity, including Office and Lifesaving Victoria have Additional operating hours at Carrum the new Ravenhall prison, will address continued access to high frequency Downs police station will increase capacity demand in prisons, creating radio channels critical to support policing services to Langwarrin. 1 400 new male prison beds across the system. emergency service delivery.
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Infrastructure to support urban and regional development
Left: The space over the rail lines next to Federation Square presents an opportunity to develop the site.
> The growing knowledge-based service industry in the Melbourne CBD is creating demand for infrastructure to support urban development within and around Melbourne’s CBD. > To keep Melbourne the world’s most liveable city, the Government is also building on Melbourne’s stand‑out facilities to attract tourism and trade – including Federation Square and the Melbourne Exhibition and Convention Centre. > In addition, transformational city-shaping transport projects are opening up new opportunities to build precincts within Melbourne’s growth corridor, and Victoria’s growing regional centres – the Government this year will put in place infrastructure to develop the East Werribee Employment Precinct. > Meanwhile, new irrigation upgrade works in Northern Victoria will build on the Government’s work to increase water savings in regional areas.
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Enhancing the most Growing regions, Investing in regional liveable city creating jobs water infrastructure Building on Melbourne’s standing Transport and connectivity in Sectors in the growth and regional nationally and globally as the most Melbourne will be facilitated by areas remain central to Victoria and liveable city and a cultural and tourist transformational Government projects Australia’s economic performance. destination, the Government is investing like Stage 1 of East West Link, the The Government will soon deliver in opportunities to improve the arts operation of Regional Rail Link and the Northern Victoria Irrigation and cultural precincts of the inner city, a future Melbourne Metro. Renewal Program to upgrade irrigation to increase trade and make it more infrastructure, achieving water attractive for Victorians and visitors. Infrastructure to support the East savings to improve environmental To get the most out of Melbourne’s Werribee Employment Precinct flows in the Murray and providing existing CBD infrastructure, the The Government is investing in an a more secure future for Victorian Government is investigating East Werribee Employment Precinct agricultural producers. opportunities to reinvigorate our that will be a vibrant business hub To complement this, in 2013-14 the key assets. in the booming West. Government has provided $32 million, The Government is funding planning In 2013‑14 the Government has jointly with irrigators, for the Macalister or development for the following also approved the Sneydes Road Irrigation District (MID) to identify key projects: interchange that will provide access opportunities to upgrade irrigation infrastructure. The MID 2030 project > The space over the railway lines to the site from Maltby Bypass. will increase on-farm productivity, to the east of the iconic Federation regional economic production and Square presents a potential The opening up of travel routes waterway and estuarine health through opportunity to further develop also leads to significant opportunities to the modernisation of the district. MID the precinct. The Government is redevelop key precincts beyond Melbourne is the largest irrigation district in the exploring this opportunity by running for a variety of productive new land uses, south of Victoria generating significant an expression of interest process businesses and homes. A 914 hectare site economic benefits for Victoria, through regarding the development of in Werribee, offers a strategic opportunity dairy farming. The project will increase Federation Square East. This will to assist the increasing population in efficiency by reducing water usage, allow interested parties to put Melbourne’s growth corridor. pumping and supplementary feed costs. forward ideas for the site which The East Werribee Employment Precinct It will also provide additional water for include commercial and financial will deliver significant benefits for the irrigation to meet a growing population. structures that would support the city of Wyndham and Victoria. The A more efficient irrigation district will potential redevelopment on this project will open up the region between enable improved productivity from high-profile site. Melbourne and Geelong, located between existing land and support more land > The Government is also funding Avalon and Melbourne Airports and ports. being used for intensive agricultural development work to consider private The Government has provided funding production, thereby increasing the funding options and contributions to the commence the sale of the site agricultural output for the district. for the expansion of the Melbourne to attract private investment through Exhibition Centre. The Melbourne road and infrastructure upgrades within Exhibition Centre already generates the precinct. an average annual economic impact With easy access to the M1 Princes from international events of Freeway and Geelong rail line it is ideally $104 million – but if it could host located for business and employment. more events, it could contribute The East Werribee Employment Precinct over double that each year. The will develop a vibrant economic centre development work will consider that supports the sustainable growth of expanding the existing Melbourne Greater Melbourne. Exhibition Centre by one-third of its current area in order to retain and grow Melbourne’s profile as a business and event centre, with options to leverage commercial, private sector financing.
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Policy frameworks to drive infrastructure value
Upon coming to office, the Coalition An integrated approach Government inherited many projects that were poorly planned, and suffering to transport, planning and from delays, incorrect scoping, and cost infrastructure blow outs. A strong policy framework Good planning requires the successful to underpin infrastructure planning integration of public transport and key and delivery assists the Government local infrastructure to deliver better in fixing the problems, building for local environments for Victorian families medium-term growth and planning and businesses. To secure Victoria’s for the long term. position as one of the most liveable places in the world, the Government will integrate urban and transport planning with local infrastructure and services within the new Department of Transport, Planning and Local Infrastructure, creating a new framework for the provision of an integrated and sustainable transport system in Victoria. The new Department’s integration also aligns with the integrated land-use and transport decision-making framework set out in the Transport Integration Act 2010, and will enable better execution of the intent of that Act.
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Increased oversight of major Some examples of projects from this Our commitment to PPP delivery projects to improve efficiency year’s budget that will be subject to The Government is engaging with the HVHR policy are Monash Children’s the private sector to access capital To protect the budget and taxpayers Hospital, Royal Victorian Eye and Ear and build new infrastructure, including from cost overruns on major projects, Hospital Redevelopment and East West investigating new forms of value capture, the Government uses a rigorous process Link. The Government’s close oversight refining the existing public private for developing, approving and of high priority projects will assist the partnership (PPP) model and establishing implementing its capital program that Government adhering to medium-term a clear framework for considering manages the significant risks associated fiscal parameters including a net unsolicited private sector proposals. with capital investment. The High-Value operating surplus of at least $100 million. High-Risk (HVHR) policy has been Public private partnerships play an introduced to enhance business case important role in delivering government development and improve the efficiency Bringing a more commercial infrastructure and services. The of project implementation – to focus to infrastructure procurement model generates high significantly improve value-for-money procurement performance project delivery by results for the Government, and the The Government will bring greater bringing together private sector people of Victoria. This policy applies to commercial discipline to infrastructure innovation, the disciplines of project projects that are classified as ‘high value’ provision through new budgeting and finance and the right incentives for or ‘high risk’ by the Government, and procurement processes. performance over the whole life requires greater scrutiny by the Treasurer of the infrastructure. and rigour in their planning and Withholding disclosure of National and international studies delivery – reducing cost blow outs. confirm the potential cost and time The policy avoids having taxpayer project budgets to drive better savings achieved through PPPs, with money tied up dealing with cost value for money tenders over $1 billion in savings estimated for blow‑outs, which ensures more For selected major construction projects, the 22 projects being delivered under funding is available for other projects. the Government will not disclose the Partnerships Victoria budgeted project cost at the time the framework. High-value and high-risk asset of announcement. This will improve This is combined with the innovations investments have been defined as the competitive tension in the tender and qualitative benefits as detailed below. those that: process and encourage more active Innovations in PPP delivery include: > have a total estimated investment price competition between bidders. > innovative design outcomes as (TEI) greater than $100 million, demonstrated on the Royal Children’s regardless of the funding source; Where this approach has already been trialled, better value for money outcomes Hospital, the Southern Cross Station, > are identified as high risk, using an have already been achieved. The and the Melbourne Convention approved risk assessment tool; or Government will expand the use of this Centre (all internationally awarded); > are determined by the Government approach to all significant construction > future proofing through significantly as warranting the rigour of increased projects, except where there are clear larger building area and shell space oversight. commercial or policy reasons for a for the facilities compared with state Proposals assessed as high value and/or more traditional process. benchmarks, including for the Royal high risk are subject to more stringent Children’s Hospital, the Partnerships processes at all stages of development, Providing more information Victoria in Schools, the Biosciences including increased central oversight about infrastructure planning and Victorian Comprehensive Cancer and Treasurer’s approval at key stages This year, Budget Paper No 4 contains Centre projects; in the project lifecycle. Gateway reviews expected completion dates for projects. > various Environmentally Sustainable (peer reviews, by a panel of experts, This is the first stage of publishing Development (ESD) initiatives that designed to improve investment additional information for projects. go significantly beyond the State’s selection, management and delivery) By mid‑2013, the Government will also minimum requirements; and are required. This intends to systematically publish online further information for > related retail opportunities and greater improve on time, on budget and on major projects funded through the utilisation of assets in general such as quality delivery of investment benefits budget, including procurement method, in the Royal Children’s Hospital and to Victorians. The policy will ensure expected tender release dates and Biosciences projects. infrastructure funding is targeted to project status. This data will be regularly projects that have been rigorously updated to provide the construction scoped and costed, are deliverable and industry and the community with will deliver real benefits to the community. important information on how major projects are progressing. It will be of great value to the construction industry in particular in planning for upcoming public sector project tendering processes.
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Policy frameworks to drive infrastructure value (cont)
PPP reforms Tackling rising The Government has announced new construction costs reforms to the PPP model to ensure Over recent years, rising construction that Victoria has the right model for costs have been a significant barrier engaging the private sector to drive to meeting the nation’s infrastructure innovation and efficiency. The changes needs. According to three different follow extensive industry consultation measures of cost growth, construction including the November 2012 release costs have increased faster over the of a public consultation paper. past 10 years than average costs for Government has been responsive to Australian market sector industries. industry and practitioner feedback on Research also shows that productivity improvements to the PPP model to growth in the Australian construction reduce bidding costs and drive greater industry has been poor and compares efficiencies and service outcomes for unfavourably to construction costs in the Victorian community. Government the United States. These problems are will take the opportunity to expand the pricing Victoria out of vital infrastructure scope of services provided by the and skewing the shape of our cities. private sector associated with new or The Government is responding to upgraded infrastructure. The Ravenhall these challenges and in 2012 introduced Prison project soon to be released to Victoria’s new Implementation Guidelines market will include custodial services to the Victorian Code of Practice for provided by the private sector. the Building and Construction Industry. The guidelines are designed to assist A streamlined approach for small‑scale the construction industry achieve projects that currently lack the scale behavioural change on Victorian needed to attract private sector interest building sites. will be tested via a simplified PPP model. The key PPP commercial The guidelines require tenderers for principles can be applied to smaller public sector construction work in investments or a bundle of projects. Victoria to commit to compliance with Value for money will continue to be the law, productivity, safety and freedom tested via a robust Public Sector of association. Tenderers who fail to Comparator benchmark. The assumed comply with the guidelines can be alternative procurement option will sanctioned, which can lead to the loss be removed and where appropriate of tendering opportunities in Victoria. the comparator will be an affordability The guidelines are helping make vital benchmark with a scope ladder. infrastructure projects more affordable, leading to greater investment and Modified financing structures will be employment opportunities for Victorians. examined for the right projects consistent with recent experiences with state The guidelines now apply to over capital contributions for PPP projects 150 State projects and 200 contractors in Victoria and other jurisdictions. across Victoria. A potential 1 000 private building sites throughout Victoria are There will also be action to reduce also subject to monitoring by the bid costs and build capability in dedicated construction code compliance government. The reforms will reflect unit (CCCU). To help contractors and lessons from past projects and ensure departments achieve compliance, the future PPP contracts contain appropriate CCCU provides direct education and security and parent company guarantees. advice. Through its website, hotline, New requirements will also facilitate mailbox, stakeholder liaison and formal the replacement of a financier in certain presentations, the unit has provided circumstances. assistance on over 600 occasions. The PPP reforms ensure that the PPP model will continue to deliver benefits to the community and will meet the challenges of a new global financial environment.
DTF006_L_BIP2_INTERNALS(FA3).indd 36 4/05/13 8:12 PM If you would like to receive this publication in an accessible format please telephone 9651 0909 or email [email protected] This document is also available in PDF and WORD at www.budget.vic.gov.au 2013-14 Victorian Budget Infrastructure Investment Budget Information Paper No. 2 www.budget.vic.gov.au