Road Project Soars By $200 Million
The Age
Monday March 29, 2004
The cost of the Mitcham-Frankston tollway has jumped $200 million to $2 billion because of extra ramps, interchange works and other features added in the past eight months.
Last April and again in June 2003 the State Government said the road was a $1.8 billion project. But a spokesman for the statutory authority responsible for the project, Brian Wilson, confirmed yesterday that extra features had lifted costs.
The additions include extra ramps to connect to the Maroondah Highway; extra ramps at the Monash Freeway interchange; and extra works at the Ringwood interchange.
Mr Wilson said the additions had come after public consultation to determine the needs of localities along the roadway. ``In the last six to eight months there's been a number of additions that have been put into it that has added about $200 million to the cost of the project," he said.
Two groups have each lodged $10 million bonds with the Southern and Eastern Integrated Transport Authority to enter the tender process and are spending millions developing bids.
As bids to build the controversial 40-kilometre, fully electronic toll road are submitted today, The Age can reveal previously unknown details.
In the surface section north of the Monash Freeway to Mitcham, the road will be a six-lane motorway. The 1500 metres of twin tunnels under the Mullum Mullum Creek near Ringwood will be mainly two lanes in each direction, with a third lane likely for uphill climbs.
South of the Monash Freeway the Mitcham-Frankston will be a four-lane motorway. This will cut peak hour traffic on main north-south routes in the south-eastern suburbs by up to 30 per cent, the transport authority claims.
In some areas along the congested Springvale Road and Stud Road, peak hour traffic will be cut by an estimated 10 per cent, rising to 30 per cent in others. The project will have 16 major interchanges, more than 90 bridges and exits allowing cars to leave at 100 kmh or 80 kmh.
The Mitcham-Frankston motorway will also carry a higher proportion of trucks than most of Melbourne's freeways, but fewer than CityLink. On most of Melbourne's freeways commercial traffic accounts for about 14 per cent of traffic, while on CityLink about 17 per cent of traffic is commercial, the transport authority's commercial and legal director John Matthews said.
Land acquisition for the project is also progressing smoothly, he said. Authorities are in the process of buying about 250 of the commercial, residential and Government properties required. Almost all of the properties needed would be obtained before the end of the year, Mr Matthews said.
Mr Wilson said the road would cut 35 minutes from a peak hour trip from Ringwood to Frankston. ``The key thing about it is that this project gives those areas, particularly the industrial and the commercial areas of Frankston and Dandenong, an enormous leg-up. It provides them with an expedited access route to the city and the rest of the Victorian network," he said.
In pamphlets promoting the road the transport authority says it will cost ``$2 billion plus to build the road". It says the successful bidder will ``have to spend $500 million per year during the four years of construction and will not earn a cent from operations until the road opens in 2008".
The $2 billion price tag emerged publicly last week during an at times hostile breakfast meeting in Bayswater where Transport Minister Peter Batchelor defended the Government decision to impose tolls. During an exchange with a guest Mr Batchelor said: ``I can understand your point of view, you would rather have somebody else pay for it but I'm afraid, in the real world, you can't build things that cost $2 billion and have nobody pay for them."
The transport authority will assess the bids in coming months and make a recommendation to the Government.
Two groups are bidding for the project. One consortium, ConnectEast, comprises Macquarie Bank, Thiess, John Holland, Alstom Australia Limited and Hyder Consulting. The other group, Mitcham Frankston Motorway Pty Ltd, comprises Transurban, Leighton Contractors, Abigroup and Deutsche Bank. The road is scheduled to open in 2008.
The State Government has said it will contribute $100 million to the project, and wants another $100 million from the Commonwealth - which had previously committed $445 million to the project on the basis it would be toll-free.
A State Government spokeswoman said there would be ``no material impact on tolls" because of the road's new cost and that the figure of $2 billion was simply an estimate.
Q What is it?
A 40-kilometre, fully electronic toll road without traffic lights running from Mitcham to Frankston.
Q When will construction start?
A The Southern and Eastern Integrated Transport Authority says it is on schedule to enter into a contract with the successful bidder in late 2004. Construction is expected to start shortly after.
Q When will it be completed?
A 2008 is scheduled completion date.
Q How much will the tolls cost?
A Don't know. State Government and the authority say they will be comparable to CityLink.
Q How much time will it save?
A 35 minutes during peak hour on a Ringwood-Frankston trip; 15 minutes from Melbourne Airport to the Yarra Valley; 15 minutes from Melbourne Airport to Frankston. (Times according to the authority.)
Q Who is bidding for the project?
A Two consortiums are bidding for the right to finance, build and operate the project. ConnectEast (chairman Janet Holmes a Court) is made up of Macquarie Bank, Thiess, John Holland, Alstom Australia Limited and Hyder Consulting. Mitcham Frankston Motorway Pty Ltd, comprises Transurban, Leighton Contractors, Abigroup and Deutsche Bank.
Q How is the winning bidder chosen?
A The authority will assess the bids and make a recommendation to Government later this year. Final bids are due April 27.
Q Why did the Bracks government break a promise to make it toll-free?
A Premier Steve Bracks blamed the decision on other budgetary pressures: a
$1 billion blowout in public transport costs, the multimillion-dollar bill for the bushfires, the cost of the drought and falling equity markets.
Q What about the $445 million the Federal Government pledged?
A The Howard Government had agreed to provide $445 million for the Scoresby Freeway (since renamed the Mitcham-Frankston motorway) provided the State Government provided the same amount and the road was built toll-free. It says the money is still available if the road is toll-free.
Q Is there any chance of the road being made toll-free?
A No
© 2004 The Age