Major Contract

North East Link – Primary Package – Tunnel PPP

PROJECT STATUS
Awarded
North East Link – Primary Package – Tunnel PPP

The proposed North East Link project will connect the Metropolitan ring road (M80) and Eastern Freeway (M3) completing a ring road around Melbourne which includes the Monash Freeway (M1).

The Primary Package of the project comprises construction of twin three-lane tunnels approximately six kilometres in length passing under Banyule Flats and the Yarra River, as well as provision of tunnel systems, intelligent transport systems, tolling infrastructure, noise walls, shared use paths and associated infrastructure. Originally, the package was also proposed to include construction of seven kilometres of freeway and new interchanges, but much of this additional scope was moved to secondary packages in November 2020.

 

Key Dates

2021 Contract Award
2021 Expected Construction Commencement
2027 Expected Construction Completion

Procurement

Shortlist: OneLink, comprising CPB Contractors, Samsung C&T, Egis Road Operations, UGL Engineering, Pacific Partnerships, and DIF Management Australia. Spark, comprising Salini Impregilo, GS Engineering and Construction, China Construction, Broadspectrum, Capella Capital, John Laing, and advisers Lendlease Engineering ViaNova, comprising John Holland, ACCIONA Construction, Lendlease Services, Plenary Group, and ACCIONA Concesiones
Successful Tenderer: Spark, comprising WeBuild, GS Engineering and Construction, CPB Contractors, China Construction Oceania, Ventia, Capella Capital, John Laing, DIF and Pacific Partnerships
Adviser (Tenderer): Allens Seed Engineering

PROJECT HISTORY

May 2018 The 2018-19 Victorian Budget announced that the main tunnel component of the project would be procured through an availability public private partnership (PPP).
Sep 2018 Registrations of Interest (ROIs) for market engagement on the PPP were opened.
Nov 2018 The Victorian Government called for Expressions of Interest (EOIs) for the PPP package. EOIs were due by 10 May 2019.
Sep 2019 The Victorian Government shortlisted three consortia for the project - OneLink, Spark and ViaNova.
Mar 2020 The Victorian Government announced that a state-owned tolling company would be created to fix and collect tolls for the North East Link. Tolls will be applied to the primary package section of the road. The new company will use revenue from tolls to recover some of the construction costs and also fund future maintenance.
Nov 2020 The Victorian Government amended the procurement approach embedding an Incentivised Target Cost risk and reward regime. Changes to project scope and risk transfer were also made, with a refocusing of the package on the tunnelling components. The Victorian Government cited changes in market dynamics under COVID-19, recent feedback from industry engagement and the desire to strengthen collaboration and partnership during delivery as key reasons for the change in the procurement approach.
Jun 2021 The Victorian Government announced the preferred bidder for the North East Link – Primary Package as Spark, a consortium comprising WeBuild, GS Engineering and Construction, CPB Contractors, China Construction Oceania, Ventia, Capella Capital, John Laing, DIF and Pacific Partnerships.
Estimated Total Cost
(2018)
Sector
Road
Procurement approach
Confirmed PPP |
Location
Victoria | National |
Infrastructure Australia status
High Priority Project (medium-term, 5-10 years)
Resources