Major transport projects: planning and early works

Overview

Objective

To determine whether planning for a selection of major transport projects has enabled efficient implementation of early works.

Issues

Several major transport projects are now in planning or commencing early work:

North East Link: $15.8 billion (funded in 2019–20)
Airport Rail Link: $5 billion (matching state contribution funded in 2020–21)
Geelong Fast Rail: $2 billion (matching state contribution funded in 2020–21)
Suburban Rail Loop: $2.5 billion (funding to date confirmed in 2020–21).

These new 'mega-projects' account for 50 per cent of the total capital spend in the transport sector, which in turn accounts for just over 75 per cent of the total capital spend in the general government sector, based on the 2019–20 State Budget.

Our previous audits on major capital projects, as well as international research literature on mega-projects, have identified a number of project outcome risks (such as not meeting time, budget or benefit expectations) that are linked to inadequate project planning and conceptualisation.

Good planning should identify all key risks and statutory processes that need to be undertaken before a project's main works can proceed. These processes can involve stakeholder consultation and negotiations, environmental assessments and statutory planning approvals.

Early works often include critical project activities such as land acquisition, site decontamination or remediation, site access and fencing, as well as protection or relocation of utilities. These activities need to be well understood and priced before main works commence to avoid unplanned delays or cost increases.

Proposed agencies

DTF and DoT, including the Major Transport Infrastructure Authority and the Suburban Rail Loop Authority.

Associated entities

Public–private partnership consortia and relevant contracted construction partners.