State Capital Program 2019-20 Presented by Tim Pallas MP Treasurer of the State of Victoria for the information of Honourable Members Budget Paper No. 4 TABLE OF CONTENTS Chapter 1 – State capital program 2019-20 ................................................................. 1 Delivering infrastructure to benefit all Victorians .......................................................... 1 Reforms to meet demand ............................................................................................... 6 Enhancing assurance processes and delivery capability ................................................ 7 Delivering the right skills for the job ............................................................................... 7 Overview of the state capital program ........................................................................... 8 Public private partnerships ........................................................................................... 13 Coverage of Budget Paper No. 4 ................................................................................... 18 General government capital program .......................................................................... 19 Public non-financial corporations capital program ...................................................... 22 Chapter 2 – General government capital program 2019-20 ....................................... 25 Department of Education and Training ........................................................................ 25 Department of Environment, Land, Water and Planning ............................................ 58 Department of Health and Human Services................................................................. 61 Department of Jobs, Precincts and Regions ................................................................. 68 Department of Justice and Community Safety ............................................................ 71 Department of Premier and Cabinet ............................................................................ 75 Department of Transport .............................................................................................. 76 Department of Treasury and Finance ........................................................................... 85 Parliament ..................................................................................................................... 86 Court Services Victoria .................................................................................................. 87 Country Fire Authority .................................................................................................. 90 Metropolitan Fire and Emergency Services Board ....................................................... 93 Chapter 3 – Public non-financial corporations capital program 2019-20 .................... 97 Barwon Region Water Corporation .............................................................................. 97 Cemeteries ..................................................................................................................... 99 Central Gippsland Region Water Corporation ........................................................... 102 Central Highlands Region Water Corporation ............................................................ 109 City West Water Corporation ..................................................................................... 112 Coliban Region Water Corporation ............................................................................ 115 Director of Housing ..................................................................................................... 121 i Table of contents (continued) East Gippsland Region Water Corporation ................................................................. 124 Gippsland and Southern Rural Water Corporation .................................................... 125 Goulburn Murray Rural Water Corporation ............................................................... 126 Goulburn Valley Region Water Corporation .............................................................. 127 Grampians Wimmera Mallee Water Corporation ..................................................... 134 Lower Murray Urban Rural Water Corporation ......................................................... 136 Melbourne Water Corporation ................................................................................... 139 North East Region Water Corporation ....................................................................... 144 South East Water Corporation .................................................................................... 147 South Gippsland Region Water Corporation .............................................................. 152 Victorian Ports Corporation (Melbourne) .................................................................. 156 Victorian Rail Track (VicTrack)..................................................................................... 157 Victorian Regional Channels Authority ....................................................................... 163 Wannon Region Water Corporation ........................................................................... 164 Western Region Water Corporation ........................................................................... 167 Westernport Region Water Corporation .................................................................... 176 Yarra Valley Water Corporation .................................................................................. 178 Other public non-financial corporations .................................................................... 180 Appendix A – Location index ................................................................................... 183 Definitions and style conventions ........................................................................... 189 ii CHAPTER 1 – STATE CAPITAL PROGRAM 2019-20 Budget Paper No. 4 State Capital Program summarises the capital projects the Government will be undertaking in 2019-20 and future years. This budget paper includes newly announced capital projects, works already underway and those expected to finish by 30 June 2019. The information is current as at 13 May 2019. DELIVERING INFRASTRUCTURE TO BENEFIT ALL VICTORIANS The 2019-20 Budget continues the Government’s commitment to infrastructure investment that will deliver benefits across the State. The capital program reflects commitments in Labor’s Financial Statement 2018 as well as other high-priority projects which will deliver critical transport infrastructure, upgrade and build new schools and enhance infrastructure and services across the state. The Government is planning and building intergenerational infrastructure projects such as the North East Link, Melbourne Airport Rail and removing an additional 25 level crossings to transform the transport network and support a growing economy. Investing in this scale of economy-growing infrastructure will benefit all Victorians – today and for generations to come. Modest increases in public borrowing will be applied to road and rail projects, which boost productivity through improved access to jobs, shorter commuter travel times and better connections for freight to market. Delivering now and planning for the future is necessary to ensure Victoria’s liveability. The 2019-20 Budget provides planning funding for transformative rail projects including the Suburban Rail Loop and the Western Rail Plan, so the Government can begin planning future investments that will shape our cities, precincts and growth areas across the State. The Government has responded to Victoria’s strong population growth by making significant asset investments in health, education and community safety infrastructure. New and upgraded schools, hospitals and community assets will improve access to the high-quality services Victorian families rely on. Investing in our regions will boost jobs and access to services in the cities and towns across Victoria. 2019-20 State Capital Program Chapter 1 1 The 2019-20 Budget builds on the momentum of the past four years with Government infrastructure investment averaging $13.4 billion a year over the budget and forward estimates. This is nearly triple the average of $4.9 billion a year from 2005-06 to 2014-15. Chart 1: Government infrastructure investment (average) (a)(b)(c) 18 Average GII 2019-20 to 2022-23 ($13.4 billion) 16 14 12 10 $ billion 8 Average GII 2005-06 to 2014-15 ($4.9 billion) 6 4 2 0 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18 2019-20 2021-22 Source: Department of Treasury and Finance Notes: (a) Includes general government net infrastructure investment and estimated cash flows for Partnerships Victoria projects. (b) Excludes the impact of the medium-term lease over the operations of the Port of Melbourne and the divestment of Victoria’s share of Snowy Hydro Limited. (c) The figure for 2018-19 is an estimate. Infrastructure to support a growing economy In 2019-20, $107 billion of State capital projects are commencing or underway. This includes projects in both the general government and public non-financial corporations (PNFC) sectors. Investing in infrastructure creates jobs and boosts economic activity during and after construction. Since 2014, the infrastructure investment announced by this Government is expected to support the creation of more than 115 000 jobs. Investing in better connections to key employment, education and health precincts,