The opening of expressions of interest for the Victorian Government’s Peninsula Link motorway is a welcome step toward a vital new road and represents an important evolution in he way governments buy major assets says Infrastructure Partnerships Australia (IPA) – the nation’s peak infrastructure industry body.
“This is a landmark project because it’s the first road PPP in Australia to use an availability model,” said IPA Executive Director Brendan Lyon.
“PPPs have been shown time and again to deliver outstanding results in terms of better designed, better value infrastructure. Australian research has shown that PPPs save taxpayers up to 30 per cent in construction costs, meaning the savings are significant.
“The Victorian Government are right to continue to harness these efficiencies, despite shortterm challenges from the global economic crisis.
“Current global uncertainty means that the risk appetite of potential investors like superannuation funds will be reduced. That might mean that a road PPP that exposes investors to risk around traffic volumes may not attract appropriate levels of competition – or that some projects may not be built.
“By evolving the PPP model for roads, Victoria will ensure that there is still a strong, competitive and well credentialed field of private sector partners bidding for this important project.
“Availability models have been used with great success to deliver projects like hospitals, schools and water infrastructure. It is appropriate that policy makers now look at this model for projects like the Peninsula Link.
“The Peninsula Link project will extend the benefits delivered by Eastlink and CityLink to the people of the Mornington Peninsula and Frankston, cutting congestion and boosting productivity.
“The commitment from the Victorian Government to start work on the project before the end of the year will be a vital step in supporting Victorian jobs and industry.
“The use of an availability model for this project means that Victoria can continue to harness the expertise of the private sector to deliver the best infrastructure at the best value for taxpayers.” |
