The Victorian government is standing firm on one of its most ambitious infrastructure projects amid fresh scrutiny from the nation’s top advisory body.
In comments reported by The Age, Suburban Rail Loop Minister Harriet Shing addressed questions around cost, delivery risk, and planning transparency, following the release of a federal evaluation that raised concerns about the long-term viability of the project and called for more detailed financial planning.
Infrastructure Australia Expresses Low Confidence in Project Costings
In its evaluation released on Friday, Infrastructure Australia stated that it had low confidence in the Victorian government’s $35 billion estimate for the SRL East segment connecting Cheltenham to Box Hill.
The report, provided to Federal Infrastructure Minister Catherine King before she released $2.2 billion in federal funding last month, recommended that three key conditions be met before any further Commonwealth contributions:
An updated and detailed cost estimate for Suburban Rail East, a cost-benefit analysis demonstrating the line’s benefits, and clarification on supporting station precinct interventions.
Additionally, the agency encouraged the development of “exit strategies” should delivery risks become insurmountable.
Government Maintains Commitment to Budget and Timeline
At a press conference on Saturday, Minister Shing stated,
We are on time. We are on budget. We have workers on the sites today.
She reaffirmed that tunnel boring machines will be operational by next year and that trains are expected to run by 2035 between Box Hill and Cheltenham.
When repeatedly asked whether the state would provide the updated estimates and cost-benefit analysis requested by Infrastructure Australia, Shing responded each time:
We will continue to work with Infrastructure Australia.
Focus On Whole-Of-Project Vision and 2021 Business Case
The minister declined to commit to providing any “exit strategy” documentation, instead pointing to the existing 2021 business case, which she described as “a pretty comprehensive approach to this major project.
She also stressed that the SRL should not be judged solely on SRL East :
It’s a loop. It’s not the suburban rail segment.
Addressing media suggestions that she was being evasive, Shing responded that she was providing as much information as possible.
She further cited an assessment by the Victorian Auditor-General, which she said confirmed the project was on schedule and within budget.
Opposition Criticizes Government Over Project Transparency
Opposition major projects spokesperson Evan Mulholland labeled the report a “damning assessment” of Premier Jacinta Allan’s flagship infrastructure initiative. He said:
It completely obliterates her cost projections for this project.
Mulholland’s comments reflect broader criticism from the opposition regarding transparency and fiscal responsibility, particularly in light of rising infrastructure costs across the country.
