The RTA developed all of the 73 road changes as the tunnel's design evolved:
■ first through the EIS process for the original tunnel design put to tender
■ second through the Supplementary EIS for the final project design (i.e. CCM's alternative design, the non-conforming 'Long 80' tunnel).
CCM proposed one road change, closing the right turn from Cowper Wharf Roadway to the Harbour crossings. The DoP denied this request following community consultation. It considered that it would unnecessarily force motorists to use the CCT.
The role of the DoP was to validate the assessment of the likely environmental impacts from the proposed road changes. It also specified any mitigating measures required through the Conditions of Approval for the project.
The road changes fall into four categories of work, defined as follows:
■ category A are permanent works to be constructed by CCM which may expose the RTA to Material Adverse Event (MAE) liability if removed
■ category B are permanent works that CCM must design and construct, which would not expose the RTA to Material Adverse Event liability if removed
■ category C are temporary traffic arrangements during construction of the tunnel
■ category D are traffic arrangements that the RTA proposes to implement that are neither covered by the project deed nor the planning approval.
A Materially Adverse Event is a change brought on by the RTA that will cost CCM, as the operator, money. Exhibit 4.1 below summarises the status of road changes by category.
Exhibit 4.1: Status of road changes by category | |||
Status (May 2006) | Category of road changes | ||
| A (MAE) | Other (B, C, D) | Total |
Completed | 22 | 41 | 63 |
Outstanding | 0 | 4 | 4 |
Reversed | 0 | 6 | 6 |
Total | 22 | 51 | 73 |
Source: Based on information provided by the RTA in May 2006. | |||
The project deed does not restrict the RTA's (or the Government's) statutory powers to manage, extend, upgrade or change the road transport network. However, category A road changes could trigger MAEs. Appendix 4 provides a brief description of each road change, which, if reversed, could create an MAE. It also shows the stage at which each MAE was introduced.
In the event of an MAE occurring, the project deed requires the RTA to negotiate with CCM in good faith. The negotiation would aim to restore CCM's financial position to what it would have been had the changes not happened. The compensation may mean a payment of money. However, the contract requires a flexible approach in negotiations. This could see the term of the concession or the tolling regime altered, instead of a direct compensation payout.