PPP model announced for Melbourne Metro Rail Tunnel

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PPP model announced for Melbourne Metro Rail Tunnel

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Melbourne Metro Rail Project (Australia) will be developed through a public private partnership (PPP) model.

The request for expression of interest (REOI) for the PPP contract is expected to be released in mid 2016.  The contract, an availability based PPP valued at approximately A$5 billion, will include design and construction of the metro rail, private finance and the provision of maintenance and other services during the operating term.

The project will involve the development of two nine-kilometre rail tunnels from South Kensington to South Yarra, travelling underneath Swanston Street in the CBD, as part of a new Sunbury to Cranbourne/Pakenham line. The new line will have five underground stations at Arden, Parkville, CBD North, CBD South, and Domain; train/tram interchanges at Parkville and Domain; and rail tunnel entrances at South Kensington and South Yarra.

In February this year the Andrews Labor Government created the Melbourne Metro Rail Authority, with A$40 million in funding, to oversee planning of the project and $1.5 billion to commence land and property acquisitions and detailed route investigations. Additionally A$3 billion in funding, redirected from the now cancelled East West Link project, has been committed by the State Government. The total project investment is estimated to be between A$9 billion (US$6.39 billion) and A$11 billion (US$7.8 billion).

Melbourne is Australia's fastest growing city, with the population expected to almost double by the year 2050. The project will increase the capacity, reliability and efficiency of Melbourne's busiest train lines. It will unlock the center of the train system, enabling major improvements in capacity, reliability and frequency of services. The metro line is the key to the future expansion of Victoria's rail network, enabling the city's transport system to grow.

There will be significant opportunities for private sector involvement in the rail project, with opportunities for a range of contractors, designers and suppliers. Interested parties can register their interest in the link provided below:


We have recently reported on several PPP projects in Australia:

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