The government announced final agreements to bring the East West Link (EWL) project to an end in June 2015. The termination settlement involved the state reimbursing East West Connect (EWC) for claimed expenditure on the project and acquiring the project assets and interest rate swaps established for the project. The state also negotiated an uncommitted bond financing mandate for up to $3.1 billion with some members of the EWC banking group.
Following a competitive tender process to select a contractor to finance, design, construct, and then operate and maintain the East West Link, the contract for Stage 1 of the project was signed with East West Connect (EWC) on 29 September 2014. The state provided a side letter confirming its commitment to honour the contract on the same day in recognition of the unique circumstances around the government's decision on whether or not to sign the contract.
The East West Link (EWL) project was one of the most significant investments ever proposed for the state in terms of impact, complexity and cost. In October 2011 the government approved funding for the development of a business case for the project. In April 2013, the government approved the eastern section of EWL to proceed as Stage 1 of the project, based on the March 2013 business case.
The East West Link (EWL) project was one of the largest transport infrastructure projects ever proposed in Australia. It was to be delivered in two stages. Prior to the November 2014 state election, work had commenced on Stage 1, the eastern section, with limited progress on Stage 2, the western section. Following the November 2014 state election, after significant costs had been incurred, the new government terminated the project.
The East West Link (EWL) project was one of the largest transport infrastructure projects ever proposed in Australia. The full project included an 18 kilometre cross city road connecting the Eastern Freeway at Hoddle Street to CityLink, the Port of Melbourne precinct and the Western Ring Road at Sunshine West. Figure 1A shows the planned EWL.
Figure 1A
Planned East West Link
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Dr Peter Frost Acting Auditor-General |
Audit team Steven Vlahos and Tim Maxfield—Engagement Leaders Tony Brown—Team Leader Ray Seidel-Davies—Analyst Jessica Cross—Analyst Daniel Mahoney—Analyst Engagement Quality Control Reviewer |
Ordered to be published
VICTORIAN GOVERNMENT PRINTER December 2015
PP No 108, Session 2014–15
Dear Presiding Officers
In accordance with section 16(3) of the Audit Act 1994, a copy of this report, or part of this report, was provided to all agencies and departments—see Appendix A for the list.
The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
Disclaimer: Agency responses are reproduced in this appendix as they were received by VAGO without alteration.
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Agency |
Ambulance Victoria |
2012–13 |
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Audit Report | |||