Infrastructure Partnerships Australia - ANZIP - THE PIPELINE REPORT - DECEM... Page 1 of 6
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IN THIS EDITION
1. Analysis 2. Added 3. Status Changes 4. Updates
5. Projects removed from the Pipeline
1. Analysis
Greenfield pipeline analysis
The re-election of the Queensland Labor Government - and relatively few changes or project additions in other jurisdictions - sees little change from last month, across the Australia and New Zealand Infrastructure Pipeline (infrastructurepipeline.org). Our current analysis is shown in Figure 1, below – which is drawn from our dynamic chart tools on the website.
Figure 1: Australian and New Zealand greenfield projects, by pipeline status
Source: infrastructurepipeline.org/projects-status-chart, accessed 15 December 2017
Queensland election saw little change-
Reflecting its fiscal pressures, and the political consensus across major parties against asset recycling, the Queensland election campaign saw very little in terms of infrastructure commitments.
On the upside, Queensland Labor’s re-election means no change to the timing or scope of its flagship Cross River Rail project – but on the downside, the only major addition to the pipeline is the M1 Varsity Lakes to Tugun project – which we have included at the earliest, ‘prospective’ stage.
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Figure 2, from our charting tools on infrastructurepipeline.org, shows our analysis of the current major project pipeline in the Sunshine State.
Figure 2: Queensland’s greenfield pipeline (prospective pipeline-recently closed)
Source: infrastructurepipeline.org/projects-status-chart, accessed 15 December 2017
The consequence of Queensland’s fiscal incapacity is shown in Figure 3, below, showing the collapse in capital funding as a proportion of General Government Expenditure, over the past ten years. This chart is drawn from the Government Infrastructure Funding charts on IPA’s infrastructure.org.au.
Figure 3: Government Infrastructure Funding: Share of Expenditure (Queensland)
Source: infrastructure.org.au/projects-status-chart, accessed 15 December 2017
Meanwhile New Zealand’s Christchurch Social Housing Transfer has not progressed to an announcement of the preferred bidder, which should have occurred in November – and may signal that the Ardern Government will cancel the project.
Brownfield pipeline analysis
The Australia and New Zealand privatisation pipeline saw no major changes, with the WestConnex Equity sell down the only major ‘live’ transaction.
Figure 4: The brownfield pipeline by transaction status
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Source: infrastructurepipeline.org/projects-jurisdiction-chart/ accessed 15 December 2017
2. Added
M1 Motorway - Varsity Lakes to Tugun (QLD, CTH) PROSPECTIVE PIPELINE - The M1 Motorway - Varsity Lakes to Tugun project was a key transport infrastructure commitment by the re-elected Queensland Government. The project would see six-laning on the M1 Pacific Motorway from the current four lanes over a 10 kilometre stretch of road between Varsity Lakes and Tugun on the NSW border.
3. Status Changes
Christchurch Metro Sports Facility (NZ) ANNOUNCED - Ōtākaro, the Crown agency overseeing the project's construction, terminated the Early Contractor Involvement (ECI) contract with the Leighs Cockram Joint Venture. The NZ Government is considering a construct-only contract, but also the possibility of combining the project with the proposed Christchurch Stadium development. The project has been moved back in the pipeline, from the procurement phase.
South Australian Gas Power Plant (SA) RECENTLY CLOSED - On 13 November 2017, the South Australian Government announced that the tender had been awarded to APR Energy. APR Energy will supply and operate nine dual-fuel GE TM2500 aero derivative turbines with a total capacity of 276 megawatts.
West Gate Tunnel (VIC) RECENTLY CLOSED – On 12 December 2017, it was announced that contracts had been signed between the contractors John Holland and CPB Contractors, Transurban and the Victorian Government. In the contract. It was agreed that construction of the new road tunnel would be part funded through a ten-year extension of the CityLink Concession deed.
On 27 November 2017, the Minister for Planning also approved the Environment Effects Statement (EES) for this project, with minor amendments.
4. Updates
Arthur Gorrie Correctional Centre (QLD) PROSPECTIVE PIPELINE - The detailed business case has been completed, with the assistance of Building Queensland, and has been submitted for review to the Queensland Government.
Southern Queensland Correctional Precinct (Stage 2 - Gatton) (QLD) PROSPECTIVE PIPELINE - Building Queensland has completed the detailed business case, which has been submitted for review to the Queensland Government.
Gold Coast Light Rail – Stage Three (QLD) PROSPECTIVE PIPELINE - In the lead up to the 2017 State election, the now re-elected Queensland Government committed to deliver the project.
Melbourne Airport Rail Link (VIC) PROSPECTIVE PIPELINE - On 23 November 2017 the first meeting between industry and the Victorian and Commonwealth governments occurred, signalling the commencement of the business case for the project.
Beaches Link Tunnel (NSW) CREDIBLY PROPOSED - In November 2017, a State Significant Infrastructure (SSI) application was lodged to identify topics that must be assessed in the Environmental Impact Statement (EIS). EIS documents are expected to be submitted in the second half of 2018. The project is expected to take around five to six years to build, and a more detailed construction programme will be included in the EIS.
Bruce Highway Upgrade (QLD) CREDIBLY PROPOSED - In December 2017, the re-elected Queensland Government announced it would consolidate the
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State’s Bruce Highway Upgrade funding through the formation of the Bruce Highway Trust. The new Trust will work with Building Queensland and the Department of Transport and Main Roads to oversee the prioritisation of projects to receive funding.
Christchurch Multi-Use Arena (NZ) CREDIBLY PROPOSED - The NZ Government is reviewing the possibility of combining delivery of the Christchurch Multi- Use Arena (including a stadium development) with all or part of the planned Christchurch Metro Sports Facility.
Narromine to Narrabri - Inland Rail Freight Corridor (CTH, NSW) CREDIBLY PROPOSED - The recommended alignment from the east of Narromine to the east of Narrabri was confirmed on 30 November 2017. The preferred corridor will be taken forward through the NSW Government’s planning and approval process, which will lead to an Environmental Impact Statement (EIS) for this project.
North East Link (VIC, CTH) CREDIBLY PROPOSED - In November 2017, Corridor A was announced as the preferred route between the M80 south to the Eastern Freeway near Bulleen Road.
Stockinbingal to Parkes – Inland Rail Freight Corridor (CTH, NSW) CREDIBLY PROPOSED - On 30 November, survey work and inspections commenced as part of the feasibility design work from Stockinbingal to Parkes. This work will form the basis of the environmental approvals and submissions process.
Land Use Victoria (VIC) CREDIBLY PROPOSED - In December, the Victorian Government confirmed that it is continuing to examine options for commercialising Land Use Victoria's core registration and information services. However, the Government noted that it will retain its essential services including the Valuer-General Victoria, Surveyor - General Victoria, Land Information and Spatial Services, Government Land Advice and Coordination and the Victorian Government Land Monitor.
METRONET (WA) CREDIBLY PROPOSED - The WA Government launched its new project website for METRONET, detailing all sections of the WA rail improvement programme. The Government also opened an online survey to the construction industry to ensure the Government has an understanding of the capability of the market to deliver METRONET projects. The survey closes on 18 January 2018.
Allianz Stadium Redevelopment (NSW) ANNOUNCED - In November 2017, the NSW Government announced that it would rebuild Allianz Stadium as a new 45,000 seat stadium, costing $705 million.
ANZ Stadium Redevelopment (NSW) ANNOUNCED - In November 2017, the NSW Government announced that it would rebuild ANZ Stadium as a new rectangular stadium with 75,000 seat capacity, costing $1.25 billion.
Cooroy to Curra, Section D (Bruce Highway Upgrade) (QLD) ANNOUNCED - In the lead up to the 2017 State election, the now re-elected Queensland Government committed to deliver the project.
Manawatu George alternate route (NZ) ANNOUNCED – The preferred route was due to be selected in December, however the New Zealand Transport Agency (NZTA) stated that the assessment will conclude in Q1 2018, with the preferred option to be announced soon after. NZTA noted that further work and discussions with stakeholders are required to ensure the best solution is chosen.
Western Sydney Airport (CTH, NSW) ANNOUNCED - In December WSA Co. held an industry briefing to update industry on the procurement process and timeline for the airport Main Works Packages, Enabling Activity and professional services contracts.
WSA Main Works Package 1 – Earthworks, Drainage, Utilities and Airside Pavements (CTH, NSW) ANNOUNCED - WSA Co. held an industry briefing in December, confirming the indicative timeline for the Main Works Packages. Registrations of Interest for Package 1 are scheduled to be called in January 2018, followed by Expressions of Interest (EOIs) in February and a Request for Tender (RFT) issued in mid-2018.
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WSA Main Works Package 2 – Terminal Building and Airside Interface Works (CTH, NSW) ANNOUNCED - WSA Co. held an industry briefing in December, confirming the indicative timeline for the Main Works Packages. Procurement of Package 2 is indicatively scheduled to begin in 2020, following the start of construction on Package 1, with contract award and construction commencement expected in 2022.
WSA Main Works Package 3 – Landslide Roads, Carparks and Associated Works (CTH, NSW) ANNOUNCED - WSA Co. held an industry briefing in December, confirming the indicative timeline for the Main Works Packages. Procurement of Package 3 is indicatively scheduled to begin in 2020, following the start of construction on Package 1, with contract award and construction commencement expected in 2022.
METRONET - Joondalup Line Extension to Yanchep (WA) ANNOUNCED - The WA Government has indicated the Project Definition Plan will be finalised in early 2018.
Christchurch Social Housing Transfer (NZ) UNDER PROCUREMENT - The NZ Government was expected to announce the preferred bidder in November 2017 however this has not yet occurred. Given the new NZ Government has a policy to cease future social housing transfers, combined with the delay, an announcement to cancel the transaction is likely.
Maitland Hospital (NSW) UNDER PROCUREMENT - In November 2017, the NSW Minister for Planning declared the project as State Significant Infrastructure (SSI), and an updated concept design was released. Enabling works have also commenced.
Parramatta Light Rail Stage 1 – Supply, Operate and Maintain (SOM) Package (NSW) UNDER PROCUREMENT – In November, three consortia were shortlisted for the SOM package, including Great Parramatta, Great River City Light Rail and Connecting Parramatta Consortium.
Parramatta Light Rail Stage 1 – Infrastructure Package (NSW) UNDER PROCUREMENT – In November, two tenderers were shortlisted to progress to the Request for Proposal (RFP) phase. This included a CPB Contractors and Downer EDI Works Joint Venture, and John Holland.
Melbourne Metro Tunnel – Rail Infrastructure Alliance (VIC) UNDER PROCUREMENT - The Victorian Government has shortlisted two consortia for the Rail Infrastructure Alliance (RIA) contract for Melbourne Metro. One consortium includes CPB Contractors, John Holland and AECOM; while the other includes Laing O'Rourke, Kellogg Brown & Root and WSP Australia.
Regional Rail Fleet Replacement (NSW) UNDER PROCUREMENT - On 30 November the NSW Government announced three consortia had been shortlisted for the Request for Proposal (RFP) phase. These comprise Regional Futures, led by Downer; Bombardier Consortium; and Momentum Trains led by CAF. The contract is expected to be awarded in early 2019.
Melbourne Metro Tunnel (VIC) PREFERRED BIDDER ANNOUNCED - Draft Development plans for the five new underground stations were released by the Cross Yarra Partnership - the preferred bidder for the Metro Tunnel and Stations works package- for public comment. Comments are due by 15 December 2017.
5. Projects removed from the Pipeline
These projects reached contractual close 12 months ago, so are no longer considered part of the infrastructure pipeline.
Ballarat Line Upgrade
Mernda Rail Extension
Newcastle Urban Transformation and Transport Program
Wellington Northern Corridor
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Western Sydney Stadium
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