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The March Pipeline Report saw very substantial movements right across infrastructurepipeline.org, including new project additions, updates and status changes. This is due in large part to the re-election of the NSW Government in late March, the Federal Budget last week, and several major projects reaching procurement.

There are now $60 billion worth of major projects in the NSW pipeline (Prospective to Announced), with ten new projects added following the election. The 2019-20 Federal Budget also saw long-term commitments to road and rail projects across the country. Infrastructure funding over the four years to FY2022-23 has increased to $29.5 billion, $8 billion higher than last year’s Budget. Although this year sees a significant increase in infrastructure funding, total funding over the four years remains $1.9 billion below decade-average levels.

The Budget is largely an election blueprint and as such, will likely be revised following the May election.

There have also been major movements in Queensland and New Zealand. Expressions of Interest have opened for the circa $3.2 billion Inland Rail Toowoomba to Kagaru sections PPP. Preferred bidders were also announced for the major construction and maintenance contracts for the $5.4 billion Cross River Rail project. In NZ, contractual close was reached on the NZ$1.2 billion (A$1.15 billion) Central Interceptor and the NZ$221 million (A$210 million) Christchurch Metro Sports Facility. Auckland Transport has also stated its intention to re-tender the Metro Rail Franchise.

Federal Election Budget breathes life into infrastructure funding

In welcome news, the Federal Budget sees infrastructure funding increase by $8 billion over four years, compared to last year’s budget. However, the headline $100 billion over 10 years announcement remains opaque, with only the four year forward estimates visible in the Budget papers.

The 10-year figure is likely to be a mix of grant funding, government debt, equity and guarantees. This commitment, coupled with the looming Federal election, means project allocations will likely be revised, regardless of who wins the election next month. However, in a welcome move, the Budget does not appear to preference equity injections into new vehicles – potentially signaling an end to the recent Commonwealth trend towards ‘innovative’ public financing.

As a result of the Federal Budget, the M1 Pacific Motorway Extension to Raymond Terrace has progressed along the pipeline while the Karratha to Tom Price Corridor has been added.

Key commitments to existing projects on infrastructurepipeline.org include:

• $1.6 billion for the M1 Pacific Motorway Extension to Raymond Terrace
• $1.5 billion for the North-South Corridor
• $1.1 billion for upgrades to Suburban Roads Upgrades Public Private Partnerships - South Eastern and Northern packages
• $700 million towards Stages 2 and 3 of the South Geelong to Waurn Ponds Upgrade
• $405 million in additional funding for the M12 Motorway
• $360 million for Western Highway Duplication – Ararat to Stawell
• an additional $348.5 million for Tonkin Highway Upgrades
• an additional $121.6 million for the Bunbury Outer Ring Road Stage 2 and 3, and
• $56 million towards a feasibility study for the Second Bass Link Interconnector - Marinus Link.

It is important to note that due to the opaque nature of the Federal Government’s 10-year program it is not possible to decipher the funding profiles for these projects over the 10-years. This will also depend on state funding commitments and delivery timelines for projects. As a result, the commitments to these projects have not seen status changes on infrastructurepipeline.org.

Allocations to the Gateway Motorway extension from Bracken Ridge to Pine River and the M1 Motorway Upgrade between Daisy Hill and the Logan Motorway ($800 million and $500 million respectively) have not resulted in the projects being added for the reasons stated above. These projects will be added pending more information. 

Any new commitments to projects made during the Federal election campaign will not be added to infrastructurepipeline.org until after an election result is known.

This short video tells you everything you need to know about infrastructure from the 2019-20 Federal Budget.

NSW election: stable and growing pipeline

In welcome news to industry, the re-election of the NSW Government provides stability and ensures government investment in the pipeline remains strong across all sectors.

Social infrastructure was one of the big winners from the election, with seven new hospitals across Greater Sydney added to the pipeline. The election result also confirms the ANZ Stadium redevelopment, Sydney Football Stadium rebuild, and Powerhouse Museum relocation will progress as planned.

The re-election also means three major toll road projects, the Western Harbour Tunnel, Beaches Link and the F6 Corridor Extension Stage 1, will progress through to procurement within this term of government. These projects were slated for cancellation under a prospective Labor Government.

In total, the new commitments made by the NSW Government have boosted the NSW Pipeline (Prospective to Announced) to $60 billion.

Major funding commitments from the Berejiklian Government include:

• $4.5 billion over 10 years towards the Great Western Highway Duplication, with construction to commence on sections at Medlow Bath, Mount Victoria and between Jenolan Caves Road and Forty Bends in the current term of government
• $1.54 billion for a Regional Roads Package which is spread across fixing local roads ($500 million), local bridges ($500 million) and the transfer of 15,000 kilometres of council-owned road assets back to the State
• $960 million towards duplicating the Princes Highway south of Wollongong
• $450 million towards the Nepean Hospital Redevelopment Stage 2
• $400 million for installation of intelligent traffic lights at 500 intersections, and
• $387 million to duplicate the Central Coast Highway between Bateau Bay and Wamberal.

The next four years will also see continued focus on developing Sydney's metro rail network, with $6.4 billion allocated to Sydney Metro West over the next four years and $2 billion allocated to Sydney Metro - Western Sydney Airport over years, with construction to start in 2020 and 2021 respectively. The Government also committed to planning further metro line extensions between:

• Sydney Metro City & Southwest – extension from Bankstown from Liverpool
• Sydney Metro West from Westmead to Western Sydney Airport, and
• Sydney Metro - Western Sydney Airport from St Mary’s north to Rouse Hill (via Schoefields) and south from the Aerotropilis to Macarthur.

For an overview of the key infrastructure commitments from the re-elected Berejiklian Government, watch our three-minute Infrastructure Blue Book.

 Fast, Faster and High Speed Rail election commitments

Australia has a long history of governments announcing or investigating ‘fast', 'faster' and 'high-speed rail’ projects as elections approach.

The $2 billion commitment to deliver fast rail between Melbourne and Geelong, has not resulted in the project being added to infrastructurepipeline.org. This is because there are minimal details of funding over the forward estimates and the long timeframes required in planning mean this project is unlikely to commence procurement in the next five years. Addition of the project to the pipeline will be re-assessed however, should further details emerge in the Victorian Budget.

The Federal Budget also included $14.5 million to establish a National Fast Rail Agency to oversee the development of five business cases and the proposed Geelong to Melbourne fast rail. Approximately, $8 million has been allocated for each business case. They include:

• Brisbane and the Gold Coast
• Melbourne and Albury-Wodonga
• Melbourne and Traralgon
• Sydney and Wollongong, and
• Sydney and Parkes.

Similarly, in the lead up to the NSW election the Berejiklian Government announced their fast rail initiative, with a $295 million allocation towards development of fast rail in the State. $205 million of this has been allocated to track duplication and line straightening, while the other $90 million is for investigation of new alignments to Woy Woy and to the Central West.

Infrastructure Partnerships Australia will monitor developments in faster rail closely and track projects. If they become credible in coming to market in the medium-term, they will be added to infrastructurepipeline.org at that time. 

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This analysis is a part of the Pipeline Report, which shows a collection of all changes made to infrastructurepipeline.org. It also provides a detailed analysis and informed picture of upcoming infrastructure investment or major construction opportunities.

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The infrastructurepipeline.org is produced and managed by Infrastructure Partnerships Australia.