The ACT Government has approved the business case for the first stage of Canberra’s light rail network, Capital Metro, Minister Simon Corbell announced today.
Mr Corbell told more than 300 local, national and international representatives at an industry briefing today that the government would begin the expression of interest process on Friday, 31 October.
“The first stage of Canberra’s light rail network will be delivered as a public private partnership, delivering cost certainty and minimising risk to the ACT Government,” Mr Corbell said.
“The cost of the project will be determined by a competitive market process, however, the estimated capital cost of the project is $610 million plus a $173 million contingency.
“This estimate is consistent with the previous estimate of $614 million, adjusted for escalation and risk.
“Although it is unusual to release a project’s business case, the ACT Government is committed to an open and transparent process and intends to release the Capital Metro business case on 31 October.”
By releasing the business case, which details the costs and benefits of the project, the government is delivering the project in an open and transparent manner.
“Government is taking a short period before releasing the business case to obtain final external advice on managing the procurement process to achieve value for money for the territory in the context of the business case having been released,” Mr Corbell said.
“This government is backing better public transport, backing infrastructure investment, backing the revitalisation of Northbourne Avenue corridor, backing jobs and tackling congestion.”
Using a PPP is a commonsense decision, which will provide the best value outcome by making use of proven expertise, opening up the project to experienced operators and financiers. It will drive a competitive and value driven process that has recently been successfully applied to the delivery of light rail throughout Australia.
“The strong interest in today’s industry briefing, highlighted by both the quantity and quality of attendees, shows that the industry has confidence in the ACT Government to deliver this project and that there is a high level of interest to work on projects in the territory,” Mr Corbell said.
The Capital Metro light rail project will provide positive economic benefits for the ACT, provide more than 3500 jobs during construction alone, deliver a world-class piece of public transport infrastructure, reduce congestion along Canberra’s busiest corridor and assist sustainable urban development.
“It is not an option to do nothing,” Mr Corbell said.
“The population of our northern suburbs is growing at five times the rate of the rest of Canberra. We need reliable, frequent and safe public transport.
“If we do nothing the estimated journey time from City to Gungahlin in 2031 will be more than 50 minutes in a car. Light rail will offer commuters a viable, attractive public transport option with a consistent journey time of about 25 minutes.
“That’s why we are acting now and laying the foundation stone for the future of Canberra.”
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