Australia’s Victoria Coalition Government has awarded East West Connect JV the PPP contract for the first stage of the A$6-8bn East West Link. Stage one will involve the construction of 6.6km of freeway standard road with twin 4.4km three lane tunnels passing under Alexandra Parade, Princes Street, the Melbourne General Cemetery, Princes Park and Royal Park.
A five year construction period, followed by a 25 year operating and maintenance period in return for capital contributions. Construction commencing later this year and the road expected to be complete by 2019.
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The East West Connect consortium comprises; Capella Capital Pty Ltd as agent for Capella Capital partnership; Lend Lease Engineering Pty Ltd; Acciona Infrastructure Australia Pty Ltd; Bouygues Travaux Publics; Lend Lease Services Pty Ltd; Lend Lease Infrastructure Investments Pty Ltd; and Bouygues Construction Australia Pty Ltd.
Premier Denis Napthine said the state shaping project would slash travel times and provide a much needed boost to the Victorian and national economy.
“Across the nation people are sick to death of congestion, they are tired of the gridlock, and they expect their governments to do something about it,” Dr Napthine said.
“That’s why I was pleased to sign the contract that will deliver a much needed, congestion busting infrastructure project.”
Victorian Treasurer Michael O’Brien said the competitive bidding process had produced an excellent financial outcome that is well within the forecast $6-$8bn budget.
“The total project will cost $6.8bn to deliver, with the State Government contributing $2bn. East West Connect will take on full responsibility for construction, operation and maintenance of the project, with the state receiving the benefit of tolls,” Mr O’Brien said.
Mr O’Brien said he was very pleased with the exceptional financial outcome of the competitive tender process, with the East West Connect proposal delivering a 24 per cent saving compared with the State’s benchmark.
Project cost breakdown:
Core PPP construction cost – $5.3bn
Additional enhancements (including public transport and road network upgrades, and local community enhancements) – $0.7bn
Land acquisitions – $0.5bn
State project management – $0.3bn
Total – $6.8bn