The RTA could have funded increased costs and avoided toll increase

Again, the RTA could have funded the $35 million from its capital expenditure budget instead, to avoid all or some of the 15 cents increase in the base level toll. It chose not to. We discuss the implications of this toll increase, and what remained of the upfront payment, in some detail in Chapter 3.

Exhibit 2.8 summarises all the changes to the toll that have occurred during the project.

Exhibit 2.8: Changes to the toll at key stages compared to the original project concept

Toll component

Approved activity/ original project concept

CCM's 'Long 80' Tunnel option

Reason for change

Toll Structure

One toll for all vehicles

Differentiated toll structure for heavy and light vehicles. CCM proposal at the Preferred Proponent selection stage, Oct 2001

RFP allowed proposals with differentiated toll structure

Toll Escalation Formula

CPI adjusted toll escalation

A toll escalation formalised in the original contract in Dec 2002: greater of 4 percent or CPI up to mid 2012, 3 per cent or CPI up to mid 2018, and CPI thereafter

To avoid the RTA paying an extra $75 million costs following the Supplementary EIS and associated additional Conditions of Approval

Base Toll Level

$2.50 for main tunnel

$1.10 for exit at Sir John

Young Crescent (SJYC)

Increase in base toll to:

  $2.65 (main tunnel) and $1.25 (SJYC) for light vehicles

  $5.30 (main tunnel) and $2.50 (SJYC) for heavy vehicles

Agreed in the FAD

Allowed in return for CCM carrying out $35m of additional work identified for the RTA

Source: Audit Office research