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Eastlink: Strategies for Success

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Eastlink: Strategies for Success Presentation to IPWEA 2013 Victorian Conference Wednesday 20 March 2013 www.seita.com.au Overview • Linking Melbourne Authority • PPP road projects in Melbourne • Why PPPs • Peninsula Link – current status • East West Link – Business Case www.seita.com.au Linking Melbourne Authority • 1995 – Melbourne CityLink Authority • Public Private Partnerships (PPP) specialists - Road engineering - Project financing / commercial / legal documentation - Planning / environmental approval expertise • 2003 - Southern & Eastern Integrated Transport Authority • 2010 - Linking Melbourne Authority www.seita.com.au Reporting Lines Minister for Roads Linking Melbourne Authority Board Chief Executive Officer Chief Operating Officer Executive Director Commercial & Legal Directors Director Directors Director Peninsula Link Corporate Commercial & Communications & Planning Services Legal www.seita.com.au Legislation • Melbourne City Link Act 1996 • Southern & Eastern Integrated Transport Authority Act 2004 • Transport Integration Act 2010 • Major Transport Projects Facilitation Act 2010 www.seita.com.au CITYLINK LEGEND EAST WEST LINK Ringwood Bypass STATE ROADS/ HIGHWAYS CITYLINK EASTLINK EASTLINK PENINSULA LINK (under construction) EAST WEST LINK (business case) Dandenong Bypass PENINSULA LINK Melbourne’s PPP Road Projects www.seita.com.au Why Public Private Partnerships? • Access to finance • Improved risk sharing • Benefits of innovation • Completion driven by revenue • Whole of life approach • Private sector: - management skills - decision making www.seita.com.au www.seita.com.au CityLink • VicRoads / Melbourne City Link Authority • Linked 3 radial freeways • Melbourne’s key east-west connection • PPP toll-road • One of first free-flow toll roads in the world www.seita.com.au CityLink • Concessionaire – Transurban – 22km freeway – 1.6km and 3.6km three lane tunnels – 5km viaduct and Bolte bridge • Fully electronic tolling system • Construction cost $1.5 billion (1995) • 38 year concession - started March 1996 • Opened as toll road in January 2000 www.seita.com.au www.seita.com.au www.seita.com.au www.seita.com.au EastLink • SEITA Add text • Linked Eastern and Frankston Freeways • PPP toll road • Concession period: 39 years • Construction cost: $2.5 billion (2004) • KPIs for operation and maintenance www.seita.com.au EastLink – PPP Toll Road • Concessionaire – ConnectEast – 39km freeway – 1.6km twin three lane tunnels – 17 interchanges • Fully electronic interoperable tolling system • 39 year concession - started November 2004 • Opened in June 2008 (5 months early) www.seita.com.au www.seita.com.au www.seita.com.au www.seita.com.au www.seita.com.au Peninsula Link – an Availability PPP • Links EastLink and Mornington Peninsula Freeway • 27km freeway • 9 interchanges with local roads • Quarterly service payments by State – 25 years • Project company - Southern Way • Design and construction - Abigroup www.seita.com.au Peninsula Link – Current Status • Commenced - January 2010 • Completed - 14 January 2013 • Defects completion - 14 July 2013 • Minor works / environmental obligations • Community issues being addressed • Future handover to VicRoads www.seita.com.au www.seita.com.au www.seita.com.au www.seita.com.au www.seita.com.au PPP Availability Model • Payment stream drives early completion • Achieves PPP risk transfer – D&C – Operations and maintenance • Minimises revenue risk to private sector • Allows innovation • Whole of life approach in D&C www.seita.com.au East West Link – Proposed Scheme • 18 km link Eastern Freeway, CityLink, Western Ring Road • Business case finalised - whole project - focus on eastern section • Government decision • Initial planning study Western section completed A city shaping project www.seita.com.au East West Link Business Case activities • Alignment, scope review • Geotechnical investigations • Estimate refinement • Traffic modelling / revenue analysis • Peer reviews • Market engagement - Government announcement of Business Case - Individual meetings www.seita.com.au East West Link - Challenges Ahead • Coming up with an affordable project • Finding a funding solution ($10-12 billion) • Planning / environmental approval process • Stakeholder / community engagement • Delivery in an urban environment • Minimising impacts • Determining risk allocation www.seita.com.au Questions www.seita.com.au .
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