Andrews urged to re-examine PwC’s Suburban Rail Loop analysis
PwC’s initial analysis on the benefits of Victorian Premier Daniel Andrews’ $125 billion Suburban Rail Loop should be re-examined, given ballooning construction costs and wages, questionable economic benefits and a funding black hole, transport experts warn.
The calls for a pause follow criticism over the appointment of former deputy premier James Merlino as the project’s new chairman, revelations over super-sized salaries on the project and the secretive role of PwC when the project was launched. They come as a parliamentary inquiry that is putting consultants’ work for governments under the microscope resumes on Monday.
Premier Daniel Andrews walks through the partially constructed Metro Tunnel. Getty Images
Grattan Institute’s transport director, Marion Terrill, has joined Victorian Liberals to call for the project – initially expected to cost $50 billion but already estimated by the Parliamentary Budget Office at more than $200 billion – to be paused amid a federal review of major projects.
The state government is set to sign contracts for the primary tunnelling contracts for the first stage of the project, with three consortiums vying for the work.
“It’s time for a rethink because there is such great uncertainty over the costs and it is far from clear why this is a priority when other projects are being mothballed,” Ms Terrill told The Australian Financial Review.
NSW Premier Chris Minns has said a range of further major infrastructure projects will be put on hold and Mr Andrews has paused Melbourne’s $10 billion Melbourne’s Airport Rail. Ms Terrill asked why the SRL was immune.
“We are five years on since the government made the decision to invest but we still haven’t seen a proper cost benefit analysis with a
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