ANNUAL REPORT 2009-2010 Published by Linking Melbourne Authority Building 1 Level 1 Brandon Business Park 540 Springvale Road Glen Waverley Victoria 3150 September 2010 Also published on www.linkingmelbourne.vic.gov.au © State of Victoria 2010 This publication is copyright. No part may be reproduced by any process except in accordance with provisions of the Copyright Act. Authorised by the Victorian Government 121 Exhibition Street Melbourne Victoria 3000 Printed on 100% recycled paper using waterless, carbon neutral printing with 100% renewable energy. Chairman’s report .........................................................4 CEO’s report...................................................................5 Linking communities, jobs and opportunities ..............6 Governance ....................................................................7 Our Board.................................................................7 Our people................................................................8 Peninsula Link ..............................................................9 Project objectives.....................................................9 Contractual approval processes..............................9 Delivering Peninsula Link .....................................11 Keeping the community informed.........................11 WestLink ......................................................................12 Project objectives...................................................12 Planning WestLink.................................................12 Working with the community.................................13 EastLink .......................................................................14 EastLink in operation.............................................14 Project enhancements...........................................15 Supporting our people.................................................16 Corporate Plan 2009 - 2013 ..................................16 People development strategy................................16 Improving our systems and services ...................16 Abbreviations ...............................................................16 Financial statements...................................................17 Statutory information ..................................................62 Disclosure index ..........................................................63 Related policies ...........................................................64 CONTENTS LINKING MELBOURNE AUTHORITY ANNUAL REPORT 2009-2010 PAGE 3 CHAIRMAN’S REPORT David Buckingham It has been an important year for the Linking Melbourne Authority (LMA) as we worked hard to get the Peninsula Link project underway, commenced planning for Melbourne’s next major road project, WestLink, and formally transferred the management of the EastLink contract to VicRoads. I was delighted to be given the opportunity in 2009 to Linking Melbourne Authority formally succeeded chair the LMA board and, together with my fellow board Southern and Integrated Transport Authority (SEITA) members, am grateful to lead an Authority so with the passage of the Transport Integration Act 2010 experienced in the delivery of large transport projects. and now has an important role to play in the linking of people, communities and opportunities. This role is That experience certainly came to the fore as we being undertaken particularly in Melbourne’s west undertook the bidding process for Peninsula Link. where we are planning for a road tunnel linking the Port That it was completed so efficiently and thoroughly, in a of Melbourne precinct with West Footscray and a longer record time of just ten months, is a credit to all involved. term freeway connection to the Western Ring Road. I want to thank our staff and consultants for their WestLink is vital to Victoria’s liveability and prosperity, efforts, not only in the manner of their work but in and will provide an essential alternative to Melbourne’s pioneering the Availability Public Private Partnership West Gate Bridge. We have achieved a great deal in our (PPP) model for a road project in Australia. planning and consultation already and will continue to focus on developing a project that serves the growing The turning of the first sod for major works on the western community into the future. project by the Premier in February 2010 was the culmination of many months of effort, yet it also marked In closing, I would like to again thank my fellow board a new beginning for Peninsula Link. A beginning where members for playing their part in this new chapter of we see our project partner Southern Way and its LMA. I also want to acknowledge the LMA team that has construction company Abigroup take carriage of the welcomed us and delivered so well in our first year. project, and where we position ourselves to support the project delivery. We remain firmly focused on working David Buckingham with Southern Way to ensure a quality project is Chairman delivered for Victoria. PAGE 4 LINKING MELBOURNE AUTHORITY ANNUAL REPORT 2009-2010 CEO’S REPORT Ken Mathers It has been a challenging, yet rewarding, year for the Linking Melbourne Authority as we welcomed a new board and, after two years in operation, handed responsibility for the EastLink concession to VicRoads. The transfer of EastLink to VicRoads on 30 April 2010 Most importantly, we are working closely with the was a landmark occasion and allowed us to reflect on community to ensure local input into the project. We the achievements of the past seven years. In operation, look forward to being in a position to develop a preferred EastLink has proved to be one of Australia’s safest and project and achieve the required approvals in 2011. most attractive roads with motorists using the facility in record numbers. Of course, EastLink has always been In closing, I’d like to thank our Minister and Board for more than a road and our completion of pedestrian their guidance and governance during the year. I also bridges at Burwood Highway and Maroondah Highway thank the entire LMA team for their efforts in 2009-10 during the year has provided a boost for local cyclists and look forward to working together to build on our and pedestrians. ConnectEast is now achieving as much successes in the year ahead. success in operation as it did during construction, and Ken Mathers we congratulate them. We look forward to delivering Chief Executive Officer outstanding service centres on EastLink near Ferntree Gully Road in the upcoming year. Whilst it is pleasing to look back with pride on EastLink, the team is now firmly focused on the delivery of the $759 million Peninsula Link. The tender process for this project was our key task during the year. Thanks to the expertise and dedication of our staff and consultants this was completed in a timeframe of ten months – a record for a major road PPP in Australia. We are excited about the proposal that Southern Way has put together for the project and will actively support them and their construction contractor Abigroup over the next three years. We face some big challenges to ensure the project meets the needs and expectations of the community, and have been working hard to both address sensitive environmental matters and ensure the community is well informed. It has been great to see construction commence on Peninsula Link, particularly the strong progress being made on the Lathams Road bridge as part of the early works program. It is equally satisfying to see the development of the WestLink planning and consultation study, given the importance of this project to Victoria’s long-term future. We are working closely with other Government departments and Authorities to create a route for the project which supports a shared vision for Melbourne’s west as part of the Victorian Transport Plan. LINKING COMMUNITIES, JOBS AND OPPORTUNITIES Purpose and priorities Government priorities – Victorian Linking Melbourne Authority (LMA) is a State Transport Plan Government body responsible for overseeing the The Government released the Victorian Transport Plan planning and delivery of complex road projects. (VTP) in late-2008. Building on previous plans, the VTP LMA is successor at law to Southern and Eastern provides a detailed outline of the coordinated investment Integrated Transport Authority (SEITA), which adopted Victoria will make in road and rail transport to meet the the trading name Linking Melbourne Authority on challenges of population and economic growth. The VTP Wednesday 22 July 2009 to better reflect its ongoing role is a policy document that places unprecedented in delivering projects which link communities, jobs and emphasis on the need to build and maintain opportunities. relationships and seek community engagement in the Established in 2003, LMA has overseen the delivery formation and delivery of major projects. In this context, of some of Melbourne’s largest road projects. The LMA’s continuing leadership in using community $2.5 billion EastLink project was the largest in Australia consultation to inform on the planning and delivery of at the time of its delivery and LMA oversaw its projects will be at the forefront of its activities. The VTP construction and operation until transfer of the EastLink can be viewed at www.transport.vic.gov.au. Concession management to VicRoads in April 2010. The SEITA Act was amended in May 2009 to allow LMA to take responsibility for any road transport-related project as declared by the Minister for Roads and Ports. The Authority is now focused