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Roads Australia Insider - May 9, 2017

 


Budget spells out $75b infrastructure spend over next decade

The Federal Government has outlined $75 billion in infrastructure funding and financing commitments over the next decade for critical airport, road, and rail infrastructure projects.

Rail a big winner

A centrepiece of the 2017–18 Budget is a $20 billion commitment to upgrade Australia's passenger and freight rail.

The Government will invest $10 billion over the next decade to fund transformational rail projects under the National Rail Program, as well as an additional $8.4 billion in equity to deliver the Inland Rail project, a high-capacity freight link between Melbourne and Brisbane.

The Inland Rail will be delivered through the Australian Rail Track Corporation (ARTC) using a combination of Government equity and a Public Private Partnership for the Toowoomba to Kagaru tunnel section.

Additional commitments to rail in the 2017–18 Budget include:

  • $500 million to upgrade regional rail networks in Victoria;
  • $792 million for Perth Metronet;
  • $30 million towards development of a business case for Melbourne Airport Rail Link;
  • $20.2 million for Murray Basin Rail, and
  • $20 million to progress business cases for faster rail connections between major cities and their surrounding regional centres.

Bruce Highway

The Government says strong gains continue to be made on the transformative Bruce Highway Upgrade Program, with $844 million in program savings enabling new projects to be agreed with the Queensland Government.

The Commonwealth will accelerate construction on the Pine River to Caloundra, and Deception Bay Interchange sections as well as additional safety works, including the upgrade of the Wide Bay Highway intersection.

WA Infrastructure

The Government is investing $1.6 billion towards a $2.3 billion road and rail infrastructure package in WA.

The Metronet and related projects are set to receive $1.2 billion, including up to $792.0 million of Federal Government funding, subject to a positive assessment by Infrastructure Australia.

Of the $760 million committed for road infrastructure, the Armadale Road/North Lake Road (Kwinana Freeway) project will receive $189.6 million, and the Leach Highway (Carrington Street to Stirling Highway) project will receive $73.6 million.

The Government will also provide $44.2 million towards regional road projects to improve regional road safety across Western Australia.

Safer Roads

The Government has provided an extra $16 million to extend the Keys2drive program, providing around 200,000 free lessons to learner drivers.

It will  conduct an inquiry into the National Road Safety Strategy.

The Black Spot Programme receives $684.5 million from 2013–14 to 2020–21.

Commitment to the Roads to Recovery Programme has been maintained with $4.4 billion from 2013–14 to 2020–21 for the construction, repair and upgrade of local roads.

Western Sydney Airport

The Government says it’s committed to the delivery of Western Sydney Airport at Badgerys Creek.

A new Government-owned company will be established, charged with ensuring that the airport is operational by 2026. The company, to be established in the 2017–18 Financial Year, will have board and management with strong private sector expertise, and will issue tenders for early works before the end of 2017.

The Government will commit up to $5.3 billion of equity to this company, to be invested over 10 years in line with the construction schedule.

Infrastructure Australia

The Government will provide additional funding of $12 million over four years to Infrastructure Australia to support its future work program.

Australian Transport Safety Bureau (ATSB)

The Government is boosting resources to the ATSB, providing an addition $12 million over five years, to continue to improve aviation safety and education.

 

Project highlights by State and Territory

New South Wales

  • Western Sydney Infrastructure Plan: $2.9 billion with $725 million to be provided in 2017–18.
  • Pacific Highway duplication: $5.6 billion with $710.1 million to be provided in 2017–18.
  • WestConnex: $1.5 billion plus a concessional loan of $2.0 billion to enable the New M5 section to be constructed in parallel with the M4 extension, with a further $720 million of the loan to be made available in 2017–18.
  • Port Botany Rail Line Upgrade (Stage 3): $75 million with $20 million to be provided in 2017–18.
  • NorthConnex: $412.3 million with $50 million to be provided in 2017–18.
  • M1 Productivity Package: $195.8 million with $60 million to be provided in 2017–18.

Through the Asset Recycling Initiative, the Commonwealth is also providing a total of $2.19 billion to NSW towards:

  • Sydney Metro: $1.7 billion
  • Sydney's Rail Future: $98.4 million
  • Parramatta Light Rail: $78.3 million
  • Pinch Points and Clearways: $52.2 million
  • Smart Motorways: $60 million
  • Gateway to the South: $39.1 million
  • Regional Road Freight Corridor—New England Highway: $30.3 million
  • Regional Road Freight Corridor—Princes Highway: $52.5 million
  • Regional Road Freight Corridor—Mitchell Highway: $5.6 million
  • Regional Road Freight Corridor—Newell Highway: $78.8 million

In the 2016 Federal election, the Government committed $306.8 million towards 40 projects across the state such as the Barton Highway Upgrade Package ($50 million), Appin Road ($50 million) and the Mulgoa Road upgrade ($80 million).

 

Victoria

The Budget provides additional funding for Victoria, with more than $1 billion for new and upgraded infrastructure utilising funding previously allocated to the Asset Recycling Initiative. This includes:

  • Tullamarine Freeway Widening (Section 1): $200 million with $112 million to be provided in 2017–18 to continue work on the 5.5 kilometres from Melrose Drive to the Melbourne Airport.
  • Great Ocean Road: $25 million with $3 million to be provided in 2017–18.
  • Western Highway—Ballarat to Stawell Duplication: $499.4 million with $77 million to be provided in 2017–18 to duplicate a further 12.4 kilometres from Buangor to Ararat.
  • Princes Highway East—Traralgon to Sale Duplication: $210 million with $31 million to be provided in 2017–18 to continue work west of Sale.
  • Princes Highway West—Winchelsea to Colac Duplication: $181.7 million with $46 million to be provided in 2017–18 to duplicate a further nine kilometres from Warncoort to Colac East. 

In late 2016, the Australian and Victorian governments agreed to the $3 billion Victorian Infrastructure Package, utilising the $1.5 billion in Australian Government funding previously paid to the now-cancelled East West Link. Under the package, the Australian Government is contributing to the following key projects:

  • Monash Freeway Upgrade: $500 million.
  • Completion of the M80 Ring Road Upgrade: $350 million, taking the total Australian Government funding to $500 million.
  • Murray Basin Rail: $220 million, taking the total Australian Government funding to $240 million.
  • Rural and Regional Roads Package: $345 million, including an additional $25 million to continue the upgrade of the Great Ocean Road.
  • Urban Congestion Package: $85 million, including construction of the O'Herns Road Interchange.

In the 2016 Federal election, the Government committed $392.1 million towards 35 projects across the State, such as the Echuca-Moama Bridge ($97 million) and the Canterbury Road Upgrade ($20 million).

The Government says it remains committed to the East West Link and its offer of $3 billion still stands.

 

Queensland

The Government says it's committed to providing funding of $6.7 billion for the Bruce Highway, with $552 million in 2017–18 including new projects announced in the Budget:

  • $530 million to accelerate planning and construction works between Pine River and Caloundra;
  • $11.2 million for the Wide Bay Highway/Bruce Highway intersection upgrade;
  • $120 million for the Deception Bay Interchange upgrade; and
  • $182.6 million for additional safety works.

​In other announcements:

  • M1 Pacific Motorway—Gateway Merge at Eight Mile Plains: $105.0 million with $34 million to be provided in 2017–18.
  • M1 Pacific Motorway—Mudgeeraba to Varsity Lakes: $110.0 million with $20 million to be provided in 2017–18.
  • Ipswich Motorway—Rocklea to Darra: $200 million with $78.5 million to be provided in 2017–18.
  • Gateway Upgrade North: up to $914.2 million with $267.5 million to be provided in 2017–18.
  • Toowoomba Second Range Crossing: Up to $1.137 billion with $248 million to be provided in 2017–18.
  • Warrego Highway—Toowoomba to Miles: $508 million with $219 million to be provided in 2017–18.
  • Townsville Eastern Access Rail Corridor: $147 million with $38.7 million to be provided in 2017–18.
  • Cape York Region Package: $208.4 million with $54.3 million to be provided in 2017–18.
  • Gold Coast Light Rail Stage 2: $95 million with $31.6 million to be provided in 2017–18.
  • Northern Australia Roads Programme: up to $223.8 million for projects to be delivered in Queensland, with $37.3 million to be provided in 2017–18.
  • Northern Australia Beef Roads Programme: up to $56.9 million for projects to be delivered in Queensland, with $26 million to be provided in 2017–18.

In the 2016 Federal election, the Government committed $547.2 million towards 12 projects across the State, including upgrades to the Pacific Motorway totalling $215 million. In addition, Queensland will also receive a share of the $100 million election commitment to the Outback Way.

 

Western Australia

The WA Infrastructure Package includes the following road projects:

  • Armadale Road/North Lake Road (Kwinana Freeway)—Constructing bridge and collector roads ($189.6 million)
  • Leach Highway (Carrington Street to Stirling Highway)—Upgrade to High Street ($73.6 million)
  • Murdoch Activity Centre Access Roads—($92.5 million)
  • Roe Highway (Kalamunda Road)—Constructing Grade Separated Intersection ($68.8 million)
  • Reid Highway (Altone Road to West Swan Road )—Constructing Dual Carriageway ($56 million)
  • Wanneroo Road (Ocean Reef Road)—Constructing Grade Separated Intersection (Additional $31.8 million, AG total $51.84 million)
  • Wanneroo Road (Joondalup Drive)—Constructing Grade Separated Intersection ($40 million)
  • Kwinana Freeway (Russell Road to Roe Highway)—Widening of Northbound Lanes ($39.2 million)
  • Kwinana Freeway (Roe Highway to Narrows Bridge)—Implementing Smart Freeways ($37.6 million)
  • Mitchell Freeway (Cedric Street to Vincent St)—Widening of Southbound Lanes ($32 million)
  • Kwinana Freeway (Manning Road)—Constructing Freeway On-Ramp (Additional $8 million, AG total $28 million)
  • Wanneroo Road (Joondalup Drive to Flynn Drive)—Constructing Dual Carriageway ($24.8 million)
  • Karel Avenue (Farrington Road to Berrigan Drive)—Constructing Dual Carriageway ($12 million)
  • Bunbury Outer Ring Road—Planning Work ($10 million).

In addition, Australian Government funding of $792 million will be allocated towards the Metronet projects, subject to positive assessment of business cases by Infrastructure Australia.

As part of the overall package, the Government will also provide $44.2 million towards regional road projects to improve regional road safety across Western Australia.

The Government is also providing funding for:

  • NorthLink WA—Swan Valley Bypass: $648.4 million (including $623.1 million from 2013–14 to 2020–21) with $200 million in 2017–18.
  • NorthLink WA—Tonkin Highway Grade Separations: $185 million with $21.2 million to be provided in 2017–18.
  • Great Northern Highway (Muchea to Wubin): $275.8 million with $70.0 million to be provided in 2017–18.
  • Mitchell Freeway widening (southbound from Cedric Street to Vincent Street): $32.2 million with $3.2 million to be provided in 2017–18.
  • Northern Australia Roads Programme: up to $171.81 million for projects to be delivered in Western Australia, with $56.29 million to be provided in 2017–18.
  • Northern Australia Beef Roads Programme: up to $12.51 million for projects to be delivered in Western Australia, with $6.01 million to be provided in 2017–18.

Western Australia will also receive a share of the $100 million election commitment to the Outback Way.

 

South Australia

  • North-South Corridor—Darlington interchange: $496 million with $198.7 million to be provided in 2017–18.
  • North-South Corridor—Torrens Road to River Torrens: $400.5 million with $105.0 million in 2017–18.
  • North-South Corridor—Northern Connector: $708 million with $233.8 million to be provided in 2017–18.
  • Anangu Pitjantjatjara Yankunytjatjara (APY) Lands: $85 million with $23.8 million to be provided in 2017–18.
  • Flinderslink: $42.7 million with $36.3 million to be provided in 2017–18.

In the 2016 Federal election, the Government committed $56 million towards three projects across the state: Oaklands Crossing, Lobethal B-Double Route and Marion Road Planning projects.

 

Tasmania

  • Midland Highway: $400 million with $96.5 million to be provided in 2017–18. This will enable the completion of two projects and allow three further projects to commence construction in 2017–18, including the Perth Link Roads project that has been brought forward by two years.
  • Freight Rail Revitalisation: $59.8 million with $12.8 million to be provided in 2017–18.

In the 2016 Federal election, the Government committed $45.3 million towards 14 projects across the State for projects such as the Hobart Airport Roundabout ($24 million) and Highland Lakes Road Upgrade ($5 million).

 

Australian Capital Territory

In the 2016 Federal election, the Government committed $3 million towards the Monaro Highway Widening and Pialligo Road Duplication planning projects.

Through the Asset Recycling Initiative, the Commonwealth is also providing a total of $67.1 million to the ACT for Capital Metro.

 

Northern Territory

  • Northern Territory Roads Package: $77 million with $15.7million to be provided in 2017–18.
  • National Highway Upgrade Programme: up to $20 million with $11.4 million to be provided in 2017–18.
  • Regional Roads Productivity Package: $90 million with $15.1 million to be provided in 2017–18.
  • Northern Australia Roads Programme: up to $192.2 million for projects to be delivered in the Northern Territory, with $94.9 million to be provided in 2017–18.
  • Northern Australia Beef Roads Programme: up to $30.0 million for projects to be delivered in the Northern Territory, with $13.0 million to be provided in 2017–18.

In the 2016 Federal election, the Government committed $29.5 million towards the Barneson Boulevard and Tiger Brennan Drive Stage 3 project, with $3.7 million to be provided in 2017–18. The Northern Territory will also receive a share of the $100 million election commitment to the Outback Way.

 

Northern Australia

  • Northern Australia Roads Programme: $600 million with $188 million to be provided in 2017–18 across Queensland, the Northern Territory and Western Australia.
  • Beef Roads Programme: $100 million with $45 million to be provided in 2017–18 across Queensland, the Northern Territory and Western Australia.
  • $5 billion concessional loan facility for development of Northern Australia.



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