Daniel Andrews won’t confirm $125bn cost estimate for Victoria’s Suburban Rail Loop

1 month ago 28

Victoria’s premier, Daniel Andrews, has refused to accidental however overmuch it volition outgo to physique the archetypal 2 stages of the Suburban Rail Loop, aft autarkic investigation was released that suggested it was much than treble the government’s archetypal estimation for the full project.

Analysis from Victoria’s Parliamentary Budget Office (PBO), released overnight, estimates the outgo of constructing the archetypal and 2nd stages of the mega task volition scope $125bn by 2084-85.

This is much than treble the $50bn the authorities said it would outgo to conception the full 90km underground railway – moving betwixt Cheltenham and Werribee via Melbourne airdrome – erstwhile it announced the task successful 2018.

The PBO estimates the archetypal signifier of the task from Cheltenham to Box Hill, dubbed SRL East, volition outgo $33bn.

This is successful enactment with the fig contained successful the government’s concern and concern case, released successful August past year, which forecast it volition outgo betwixt $30bn and $34.5bn.

Construction is already nether mode connected SRL East and is expected to beryllium implicit by 2035. The authorities authorities has allocated $11.8bn to this portion of the project, with the remaining funds to travel from the national authorities and backstage sector.

The 2nd signifier of the project, from Box Hill to Melbourne airdrome and dubbed SRL North, is expected to beryllium completed betwixt 2043 and 2053, with the enactment of bringing works forward.

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The 400-page concern and concern lawsuit said the 2 sections of the loop would person a affirmative benefit-cost-ratio betwixt 1 and 1.7, meaning for each dollar spent connected the task the authorities would get a instrumentality of betwixt $1 and $1.70.

The PBO’s investigation arrived astatine the aforesaid outgo estimation arsenic the government’s concern case.

The PBO investigation and the concern lawsuit did not item the outgo of SRL West, betwixt Melbourne airdrome and Werribee, which was the last signifier of the project.

The PBO provides autarkic and non-partisan argumentation costing and advisory services astatine the petition of Victorian MPs.

The investigation was prepared astatine the petition of the absorption leader, Matthew Guy, who connected Wednesday announced he would halt enactment connected SRL East if elected successful November and divert the wealth into the state’s wellness system.

Andrews said the authorities had been upfront that the archetypal signifier would outgo up to $34.5bn.

“It’s costed, it’s funded, it’s happening and the lone mode to marque it outgo much is to scrap it,” helium said.

Asked however overmuch the different stages of the task would cost, Andrews replied: “It volition not beryllium for our authorities to physique the 2nd and 3rd stages.

“We’ve been precise wide that we would commencement it but ultimately, [it’s] a multi-decade task that volition beryllium finished by idiosyncratic else.”