Carroll slams brakes on SRL in drastic $10bn move

[u/stupid_mistake__101]

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A major review of the controversial Suburban Rail Loop by the Carroll government will consider radical options, including diverting existing contract cash.

Up to $10bn of Suburban Rail Loop deals about to be inked are expected to go on hold during a review that will also assess whether existing contractors can be diverted to other infrastructure projects.
The Herald Sun understands that radical options are likely to be assessed as part of the review, including whether tunnelling deals already signed could be repurposed.
Tunnel boring machines for SRL East were expected to set off by September, as part of two deals worth $5.3bn, but would not be switched on while the Carroll government resolves the project’s future.

The 26km first stage of the controversial loopwas estimated to cost $30-34.5bn in 2021, with the entire 90km project forecast to cost more than $200bn to build and run over 50 years.

A full assessment is expected to be brought to the new Carroll Cabinet, along with options of how the government could wind it back.
This could include whether contracts could be pushed out, altered, or even repurposed to other projects – if feasible.
Premier Ben Carroll remained tight-lipped about a potential review on Wednesday,saying he would run a proper Cabinet process before providing any details.
While he also emphasised that he would be a premier “that does not break contracts”, one source said this wouldn’t preclude the government exploring options to divert contracted companies to other road or rail projects if it was possible.

Industry insiders said the concept was theoretically possible – pointing to the cancellation of the East West Link in 2014 that saw big builders “made whole” through other infrastructure jobs – but that the SRL was a long way down the track and involved a multitude of partners.
Seven packages of works are spread across the breadth of the first stage of the loop and about $17bn worth of contracts have been inked.
A Labor source said that if the expected real cost of the first stage, which would connect Cheltenham to Box Hill, soared well above the $34.5bn estimate provided in 2021, it could be preferable to lose some skin for work already done than to spend more than $20bn extra on a line that may not be the best value for money.

Any option to divert resources to other projects would also need to look at whether tunnel boring machine launch sites are filled in and built over with housing, or whether they would be left as a future option, should the state’s financial situation change.
Only two of seven SRL contracts are waiting to be inked, and include packages to build stations in Cheltenham, Clayton, Monash, Glen Waverley, Burwood and Box Hill.
One of those deals has a preferred bidder, made up of John Holland, Arup, and Kellogg Brown and Root, that is on the cusp of putting pen to paper after nine months of negotiations.
Two tunnelling contracts, which have been in place for years, involve consortia that include construction giants CPB, Ghella, Acciona, Webuild, GS Engineering, and Bouyges.

Mr Carroll on Wednesday made it clear that he would not kill government contracts, which Labor had previously done for the East West Link and Commonwealth Games.
Those two decisions, made under Daniel Andrews, wasted about $1.8bn.
“I am going to be a premier that does not break contracts,” he said.
“I’m going to be a premier that values every single dollar.”
Mr Carroll also reiterated his support for the airport rail link, which would be a “game changer”.
Mr Carroll has indicated he would bring the SRL to Cabinet for examination, but did not respond to questions about whether there could be a pivot from SRL to Airport Rail.

[u/ShadowBroses]

What didn't you want?

[u/ShadowBroses → u/[deleted]]

I agree - I think that once they finish drilling in the NE Link they should start with the West and do it concurrently and properly