Background

In April 2004, the Government committed to develop a "world class" convention centre on the banks of the Yarra River, adjacent to the existing Melbourne Exhibition Centre. The new convention centre's plenary hall will accommodate 5 000 delegates, with the project also acting as a catalyst for commercial redevelopment of the surrounding area, including a riverfront entertainment/lifestyle precinct, and hotel.

The development is being delivered under the Partnerships Victoria (PV) framework and has received State funding of $367 million for capital components of the project.

Key findings

•  There was adequate analysis of the need, and options for delivery of the development. The business case was comprehensive and evidence-based, and a detailed analysis of procurement options was conducted.

•  The procurement process used for the development complied with the required Victorian Government Purchasing Board and PV policy and guidance. Probity was enforced and maintained through all key procurement stages, including structured negotiations. Risk allocations were consistent with the PV guidance.

•  The design and construction phase of the project does not operate within a published project management framework. However, the project is progressing in a controlled manner in accordance with the agreed schedule after some 14 months of construction.

Key recommendation

2.1  That MPV (and the Department of Infrastructure) should continue their efforts to formalise and document a project management methodology, such as the proposed "Project Management Framework" to assist the effective implementation of major projects on behalf of the State.