MegaProject 1070: Melbourne Metro PPP reaches financial close
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Cross Yarra Partnership, a consortium consisting of Lendlease, John Holland, Bouygues Construction and Capella Capita, has reached agreement with Melbourne Metro Rail Authority for the financial close of the Tunnel and Stations Package as part of the Metro Tunnel Project. The package is valued at AUS$6 billion (US$4.59 billion).
The consortium will finance, design, construct and maintain the Tunnel and Stations Package for approximately 25 years. The package includes twin 9km tunnels and five new underground stations in the centre of Melbourne, as part of the state of Victoria's biggest ever public transport project.
The consortium will also deliver revitalised open spaces above ground at all five new stations, and additional entrances to reduce crowding on major streets in the centre of Melbourne. Walkways at Flinders Street and Melbourne Central stations will be diverted underground, enabling passengers to change easily between the Metro Tunnel stations and the City Loop.
The government of Victoria says the project will create more than 5000 jobs and pave the way for greater capacity and additional services on the Melbourne suburban rail network.
Cross Yarra Partnership was announced as the preferred bidder in July 2017, the culmination of a competitive tender process that began in April 2016. A design team consisting of Arcadis, Arup and WSP was assembled to prepare the bid, which was finally submitted in April this year. This team, named the Cross Yarra Partnership Design Joint Venture, is now being re-mobilized to deliver the detailed designs.
Early works are well underway, with major construction on the tunnel and stations expected to start next year. The tunnel boring machines will arrive in Melbourne in 2019.
John Laing, the international originator, active investor and manager of infrastructure projects, announced that it is joining Cross Yarra Partnership as an investor in the Tunnel and Stations Package. The announcement detailed that this investment brings John Laing's investment commitments for 2017 up from £340 million (US$454.36 million) to £383 million (US$511.83 million), suggesting that the firm has invested around US$57.5 million in the project.
Olivier Brousse, John Laing's Chief Executive Officer said:
"Melbourne's Metro Tunnel is a landmark project that will transform the Melbourne rail network. The Public Private Partnership set up with the State of Victoria will guarantee the delivery of this highly complex project. John Laing is delighted to be involved in such an important project alongside some of the best construction and development companies in the world that are Lendlease/Capella, John Holland and Bouygues Construction."