IN THIS EDITION

1. Analysis

2. Added

3. Status Changes 4. Updates 5. Projects removed from the Pipeline

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1. Analysis

Project pipeline analysis

October’s Pipeline Report sees activity across all economic and social infrastructure sectors throughout and New Zealand. This includes the $15.8 billion (VIC) business case approval from Infrastructure Australia, a preferred bidder being selected on City Rail Link’s Systems ITC package (NZ) and shortlisting for the two Suburban Roads Upgrade Public Private Partnerships (VIC).

The social infrastructure pipeline saw the addition of the North Shore Hospital in Auckland following a NZ$200 million (A$184 million) commitment from the NZ Government, as well as the Shoalhaven Hospital Redevelopment after the NSW Government’s $434 million commitment.

Figure 1 below shows the current pipeline by status. The value of projects in the first three stages (yet to enter the market) totals $170 billion. This is $60 billion higher than October last year, with the top three jurisdictions being , NSW and New Zealand.

Figure 1: Project pipeline by status

Source: infrastructurepipeline.org

In transport, five shortlisted consortia were announced by the Brisbane City Council for the Inner-City Infrastructure Works package of Brisbane Metro. Meanwhile, Request for Proposals (RFP) were issued to Lendlease, CPB Contractors and John Holland for Stage 2 of the Upgrade.

The New Zealand Transport Agency is also well underway with re-evaluating 12 designated road corridors. This follows the release of the Government Policy Statement on Land Transport and the Draft Transport Agency Investment Proposal. Re-evaluations and funding profiles are forecast to be complete by the end of 2018, which will confirm re-scope or re-schedule of major planned road projects.

The NZTA has recommended that the original scope of the Tauranga Northern Link project be reduced, while Whāngārei to Port Marsden Highway and Port Marsden Highway to Te Hana have seen the NZTA recommend that safety improvements along the route be the short term priority, along with road corridor protection for future upgrades. Warkworth to Wellsford will also likely be removed from infrastructurepipeline.org as NZTA indicated the project is now still at least 10 years away.

Investment in tunnels is forecast to surge

Our analysis shows we now have 12 projects in the Prospective to Announced pipeline which are tunnel projects, or have major tunnel components. Tunnel projects, with a combined value of circa $50 billion, include:

Announced F6 Corridor – Stage 1 – Extension Project (NSW) North East Link – Primary Package PPP (VIC) (CTH) Credibly Proposed Western Harbour Tunnel (NSW) Beaches Link Tunnel (NSW) Sydney Metro West – Tunnel – The Bays Precinct to Sydney CBD (NSW) Sydney Metro West – Tunnel - Westmead to The Bays Precinct (NSW) Prospective Pipeline - South East (VIC).

Other projects which will have a major tunnel component include:

Announced Inland Rail – Toowoomba (Gowrie) to Kagaru Sections PPP (CTH) (QLD) Airport Rail Link (VIC) (CTH) Credibly Proposed METRONET – Morley to Ellenbrook Line (WA) (CTH) Snowy Hydro 2.0 (CTH) Prospective Pipeline North South Rail Link (NSW) (CTH).

The North South Corridor – River Torrens to ANZAC Highway and ANZAC Highway to Darlington could also see major tunnels under part of Adelaide. SMEC, WSP and Tunnelling Solutions will undertake a technical study to assess the viability of tunneling for the two sections. The results of the technical study will form part of the business case to be prepared by PwC.

Projects that are currently under procurement with tunnelling components include Brisbane Metro, City Rail Link, Cross River Rail and Westconnex Stage 3B.

More announcements in Victoria as election edges closer

The Victorian election campaign has seen a range of infrastructure commitments across the transport sector. The Victorian Government’s latest pledge to remove a further 25 level crossings at a cost of circa $6.6 billion adds to the list of project announcements.

Major commitments by the Government so far include:

Suburban Rail Loop – South East Additional 25 level crossing removals, and – fast rail to and Ballarat along with new track to Melton and Wyndham Vale.

The Opposition has also committed to an array of transport infrastructure projects, headlined by a $4.1 - $5.5 billion grade separation and light removal project and the revival and delivery of East West Link. In the long-term, the Opposition has also proposed faster rail connections to regional Victoria, with the Geelong section forming first stage. It proposed the first stage would be operational by 2022. The plan would also see the re-opening of V/Line services to Donald, Mildura, Horsham and Hamilton. Other Opposition commitments include the electrification of Frankston line to Baxter and procurement of 16 new-generation VLocity trainsets.

A number of projects also have bipartisan support, which include:

West Gate Tunnel North East Link Rail Link, and Waurn Ponds Duplication – Stage 2.

The Opposition also supports North East Link, however it is proposing to complete East West Link first, with both projects constructed in tandem. The North East Link Authority would be tasked with delivering both projects, if the Opposition is elected.

The Hurstbridge Line Upgrade and Dandenong to Cranbourne Duplication have also had bipartisan commitments, however the timing and composition of the projects vary.

The Government has pledged $530 million to duplicate track between Greensborough and Montmorency, and between Diamond Creek and Wattle Glen, whereas the Opposition would duplicate track between Greensborough and Eltham stations. While the Government has committed to the Dandenong to Cranbourne Duplication, the Opposition has said it would extend the line to Clyde first, before duplicating the line.

WA and SA asset sales progress

WA TAB, the principal provider of online and retail outlet wagering services in WA, has been moved to announced following the WA Government's confirmation that it will proceed with the sale. Legislation enabling the sale is expected to be introduced to Parliament in early 2019. Along with Landgate and the recently announced Operation of SA Diesel Generators, these are the only three asset transactions confirmed to occur in the short-term (see Figure 2).

Figure 2: Brownfield divestment Pipeline, by status Source: infrastructurepipeline.org

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2. Added

Shoalhaven Hospital Redevelopment (NSW)

CREDIBLY PROPOSED - On Thursday, the NSW Government announced $434 million funding to redevelop Shoalhaven District Memorial Hospital. Planning money for the project was allocated in the 2018-19 NSW Budget, and the redevelopment will likely include expanding surgical and emergency department facilities.

Operation of SA Diesel Generators (SA) ANNOUNCED - The South Australian Government will conduct a tender process to lease out operations of the State's back-up diesel generators for 25 years. Expressions of Interest will be released in early November.

North Shore Hospital (NZ) ANNOUNCED - In October , the New Zealand Government announced it would commit NZ$200 million (A$184 million)to build a new elective surgery unit at North Shore Hospital. The expansion will be co-funded by the Waitemata District Health Board (DHB), which will contribute an additional NZ$20 million (A$18 million) to the project. The business case is currently under development but it is expected that the new unit will have capacity of 120 beds and four new operating theatres.

North East Link (VIC) (CTH) ANNOUNCED – The Federal Government announced that the project had been elevated to High Priority Project status on Infrastructure Australia's Infrastructure Priority List. This follows IA completing its assessment of the project's business case. Registrations of Interest for the Primary Package tunnel PPP opened in September, and all primary and proposed secondary packages of the North East Link have been added to infrastructurepipeline.org. These include:

Primary Package - Tunnel PPP - the availability PPP for the tunnel between M80 Ring Road and the Eastern Freeway Secondary Package 1 - interchange works between the tunnel and the M80 along with upgrades to two kilometres of the M80 Secondary Package 2 - interchange works between the tunnel and the Eastern Freeway, along with a section of the Eastern Freeway works between Springvale Road and as part of the project Secondary Package 3 - upgrades to seven kilometres of the Eastern Freeway between Bulleen Road and Merri Creek, and Secondary Package 4 - a section of the upgrades to the Eastern Freeway planned between Springvale Road and Bulleen Road.

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3. Status Changes

WA TAB (WA) ANNOUNCED - On 9 October, the WA Government confirmed that they would proceed with the sale of WA TAB. 35 per cent of the sale proceeds will be placed into a racing infrastructure fund. Legislation allowing for the sale of the asset will be introduced into Parliament in early-2019.

City Rail Link – Systems Integration, Testing and Commissioning – Systems ITC (NZ) PREFERRED BIDDER SELECTED - In October, City Rail Link Limited announced that it had entered into an Interim Project Alliance Agreement with an RCR Tomlinson and WSP Opus joint venture - known as the SITS Alliance. The Alliance will now develop an Alliance Proposal with government partners. If successful, the Alliance will be awarded the contract by May 2019.

Land Use Victoria (VIC)

RECENTLY CLOSED - In the fourth quarter of 2018, the Victorian Government reached contractual close with Victorian Land Registry Services (VLRS) for a 40-year concession to operate the land titles and registry functions of Land Use Victoria. VLRS is owned by First State Super.

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Fishermans Bend Tram Link (VIC)

PROSPECTIVE PIPELINE - The Fishermans Bend Tram Link Framework released in October reaffirmed the findings of the 2017 Integrated Transport Plan. Tram lines are proposed to run along Turner and Plummer Streets, connecting to the Melbourne CBD via a new bridge at Collins Street across the . The Framework indicates the tram lines would likely be constructed in stages, with Stage one comprising the Yarra River crossing and the northern tram line corridor along Turner Street.

Level Crossing Removal (VIC) PROSPECTIVE PIPELINE – The Victorian Government has announced that it will remove a further 25 level crossings if re-elected at the November 2018 State election. 18 of the 25 level crossings have been identified and are spread across the Sunbury, Mernda, Werribee, Frankston, Upfield, Belgrave/Lilydale and Pakenham lines. The level crossings have been identified using the Site Prioritisation Framework, developed by Transport for Victoria and the Level Crossing Removal Authority.

North South Corridor - ANZAC Highway to Darlington and North South Corridor - River Torrens to ANZAC Highway (SA) (CTH)

PROSPECTIVE PIPELINE - In October, the SA Government announced that PwC had been selected to develop the business case for the remaining two sections of the North-South Corridor. A team of SMEC, WSP and Tunnelling Solutions will undertake a technical study to assess the viability of tunneling for the two sections that will feed into the business case.

Tauranga Northern Link (NZ)

PROSPECTIVE PIPELINE - In October, the New Zealand Transport Agency (NZTA) completed its re-evaluation of the project to align it with the NZ Government’s new priorities. The project will now be a two lane road with the option for an additional two lanes for public transport and high occupancy vehicles. Exact planning and timing of the project will be considered in December once all project re-evaluations are completed.

Wellington Northern Corridor – Otaki to North of Levin (NZ)

PROSPECTIVE PIPELINE – In October, the NZTA completed its re-evaluation of the project to align it with the NZ Government’s new priorities. NZTA determined that a new road corridor be identified by the end of the year, envisaged as a two lane highway with allowance for four lanes in the future. Exact planning and timing of the section will be considered in December once all project re-evaluations are completed.

Whāngārei to Te Hana (NZ)

PROSPECTIVE PIPELINE - In October, the NZTA completed its re-evaluation of the project to align it with the NZ Government’s new priorities. For both the Whāngārei to Port Marsden Highway and Port Marsden Highway to Te Hana sections, NZTA recommends that safety improvements along the route be the short term priority, along with road corridor protection for future upgrades. Further details on project timing, scope and cost will likely be available in December once all project re-evaluations are completed.

ACT Light Rail Stage 2- City to Woden (ACT)

CREDIBLY PROPOSED – The Joint Standing Committee handed down their report on ACT Light Rail Stage 2 in October 2018, recommending that the ACT Government work with the National Capital Authority (NCA) to ensure Commonwealth approval by way of amending the National Capital Plan. This is due to the ACT Government's preferred route being only partially consistent with the National Capital Plan.

The Committee also recommended that Parliament require light rail lines to be wire-free in the Parliamentary triangle and a number of roads in adjoining precincts. The ACT Government has subsequently said it will work with the NCA on any possible changes to the National Capital Plan, while continuing to pursue its preferred route, option 2a.

Christchurch Multi-Use Arena (NZ) CREDIBLY PROPOSED - This month, the New Zealand Government confirmed that it would provide NZ$220 million (A$203 million) towards the arena. The funding is from the capital acceleration facility for Christchurch, which has total funding of NZ$300 million (A$276 million). The NZ$220 million (A$203 million) allocation was at the request of Christchurch City Council.

Campbelltown Hospital Redevelopment Stage 2 (NSW) ANNOUNCED – This week, the NSW Government released concept designs for Campbelltown Hospital Redevelopment Stage 2.

Concord Hospital Redevelopment (NSW) ANNOUNCED - This month, designs of the new clinical services building were released.

F6 Corridor – Stage 1 – Extension Project (NSW) ANNOUNCED - In October, the project was issued with an Environmental Planning and Assessment Amendment Order to declare it eligible to be assessed as State Significant Infrastructure. The Order is required to proceed through the SSI application process before a final decision is made.

Prince of Wales Hospital Reconfiguration and Expansion (NSW)

ANNOUNCED – Early and enabling works commenced in October and are being carried out by Lendlease. Main works are expected to commence in 2019.

Brisbane Metro – Inner-City Infrastructure Works (QLD) (CTH)

UNDER PROCUREMENT - In October, Brisbane City Council announced that five consortia had submitted Expressions of Interest for the project and indicated all would progress to the Request for Proposal phase. The consortia included:

Acciona and Arup Lendlease and WSP Laing O'Rourke, AECOM and Aurecon CPB Contractors, Seymour Whyte and SMEC, and McConnel Dowell, John Holland and GHD.

Gippsland Line Upgrade (VIC)

UNDER PROCUREMENT - In October, Rail Projects Victoria announced that a Downer, CPB Contractors joint venture and a Coleman Rail Decmil Southern joint venture had been shortlisted for Stage 2, signalling the start of the Request for Proposal (RFP) phase of procurement. Contract award is scheduled for mid-2019.

Monash Freeway Upgrade Stage 2 (VIC) (CTH)

UNDER PROCUREMENT - Request for Proposals (RFP) have been issued to shortlisted tenderers in October. Construction is expected to start next year.

Mordialloc Freeway (VIC)

UNDER PROCUREMENT - The Victorian Government released the Environmental Effects Statement for the project in October. Lendlease, CPB Contractors and John Holland were shortlisted in September 2018. It will be on display for 30 business days.

Suburban Roads Upgrade – South Eastern Roads Upgrade and Northern Roads Upgrade (VIC)

UNDER PROCUREMENT - In October, the Victorian Government announced that three consortia had been shortlisted for the Northern and South Eastern roads upgrade packages as part of the Suburban Roads Upgrade programme. The consortia include Access Arterial, Connecting Melbourne, and Netflow. Contractual and financial close on both packages is expected by the end of 2019.

Sydney Football Stadium (NSW)

UNDER PROCUREMENT - In October, the NSW Government announced that Cox Architects had won the design competition. The designs have been released.

Western Sydney Infrastructure Plan – The Northern Road Upgrade – Mersey Road to Glenmore Parkway (NSW) (CTH)

UNDER PROCUREMENT - In October, CPB Contractors were awarded the Littlefields Road to Glenmore Parkway contract for approximately $170 million. Also in October, a request for tenders (RFT) was issued for the final section, from Eaton Road to Littlefields Road. The RFT closes on 19 November 2018. View the RFT HERE.

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5. Projects removed from the Pipeline

These projects reached contractual close 12 months ago, so are no longer considered part of the infrastructure pipeline.

Broken Hill Pipeline

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