Revitalising Central Dandenong
Overview
Revitalising Central Dandenong (RCD) is a $290 million, 16-year initiative to rejuvenate the Dandenong city centre. It aims to establish central Dandenong as a thriving service and economic hub, to attract over $1.17 billion of private sector investment, and to grow the number of residents and businesses in the area. It also aims to improve the central city amenity, safety and infrastructure.
Dandenong was one of 13 Transit Cities projects under the 2002 strategy Melbourne 2030 which sought to curb the urban sprawl by focusing development around key transport centres. In 2008, it was reclassified as one of six Central Activity Districts (CADs) under the policy update, Melbourne @ 5 million.
RCD is the largest urban renewal project since the Docklands and is vital to the success of Dandenong as a CAD. The state’s investment in RCD comprises almost $50 million for two major projects and $243 million to VicUrban for land acquisition, infrastructure and other improvements. It also includes government initiated seed projects to stimulate activity in the CAD, and streamlined planning processes to assist development.
VicUrban is delivering the project on the ground, however the Department of Planning and Community Development (DPCD) is ultimately accountable for the results of RCD.
The audit examined whether the RCD initiative is being managed effectively and whether governance arrangements support effective project delivery and cross-government coordination. It also reviewed whether the project is progressing as planned, and if intended outcomes are being achieved.
The audit found that while RCD has made notable progress since 2005, it has occurred in the absence of sufficiently clear, agreed and monitored performance standards. As a result, neither DPCD nor its project control group can effectively assess the performance of VicUrban and other agencies, nor whether RCD is on track to generate the benefits and outcomes that the initiative intended. While progress has occurred, most seed projects have experienced long delays, due mainly to inadequate cross-government coordination and support. This has been outside VicUrban’s direct control and poses a major risk to achieving RCD objectives. Cross-government collaboration occurs on RCD, but is not systematic or structured to promote accountability for actions and there is little assurance it is always effective.
DPCD has no agreed indicators or framework for evaluating RCD outcomes and benefits. Though a 2008 Department of Treasury and Finance review recommended that a benefits management plan be developed for RCD, this has not yet occurred. As a result, DPCD cannot adequately monitor whether RCD is achieving its expected benefits.