Australia has a record program of transport infrastructure projects in progress, yet Australians have only limited information about the status of these projects. It seems that even governments sometimes have only limited oversight, because some projects are managed by private entities under Public Private Partnerships.
Historically it has suited governments to run their infrastructure programs this way. A politician can expect to enjoy an electoral benefit from announcing a new project, particularly in the lead up to an election. If the project ends up costing more than was promised, there is every chance the original proponent will no longer be in the same role. And even if they are, there is a good chance the public will have forgotten the original cost promise that justified the investment.
Of 32 projects larger than $500 million committed to since 2016, only eight had a business case either published, or assessed by a relevant infrastructure body at the time of commitment (Figure 5.1 on page 31 and Table 5.1 on the following page).131 This means politicians are committing to projects without knowing whether they are in the community's interest to build, let alone whether they are the best choice for the money.
And governance has been no better for those projects which have received Commonwealth Government support. Of 22 large projects to which the Commonwealth Government has committed a contribution since 2016, only six had a business case published or assessed by Infrastructure Australia at the time of commitment. A further 14 were listed as 'initiatives' on IA's Priority List, indicating they 'have the potential to address a nationally significant problem or opportunity' but that their assessment had not yet been completed. The remaining two had not appeared on any Infrastructure Australia priority list at the time a state government committed to them.
As Infrastructure Australia put it:132
Too often we see projects being committed to before a business case has been prepared, a full set of options have been considered, and rigorous analysis of a potential project's benefits and costs has been undertaken.
Box 3 on page 32 details the particularly egregious example of Melbourne's suburban rail loop.
Table 5.1: Most large projects are still committed to without an approved business case
Project | State | C'wealth contribution | IA status at commitment | Business case timing | Business case distribution |
Inland Rail | National | Y | Project | At time of commitment | Published. |
Northern Road Upgrade | NSW | Y | Project | At time of commitment | Assessed by IA |
M80 Upgrade (Northern & Western sections) | VIC | Y | Project | At time of commitment | Assessed by IA |
North East Link | VIC | Y | Project | At time of commitment | Assessed by IA and published |
West Gate Tunnel | VIC | N | None | At time of commitment | Published |
Beerburrum to Nambour Rail | QLD | Y | Project | At time of commitment | Assessed by IA; summary released |
Bruce Highway (Bribie Island Road to Steve Irwin Way) | QLD | Y | Initiative | At time of commitment | Summary published by BQ |
Bruce Highway (Caloundra Road to Sunshine Motorway) | QLD | Y | Project | At time of commitment | Assessed by IA |
F6 (Stage 1) | NSW | N | None | Assessed later | Summary published by INSW |
M12 Motorway | NSW | Y | Initiative | Assessed later | Assessed by IA |
Sydney Gateway | NSW | N | Initiative | Assessed later | Summary published by INSW |
Sydney Metro West | NSW | N | Initiative | Assessed later | Summary published by INSW |
Monash Freeway Upgrade (Stage 2) | VIC | Y | None | Assessed later | Assessed by IA |
Bruce Highway (Woondum to Curra) | QLD | Y | Initiative | Assessed later | Assessed by IA |
M1 Pacific Motorway - Eight Mile Plains to Daisy Hill | QLD | Y | Initiative | Assessed later | Assessed by IA; summary released |
M1 Pacific Motorway - Varsity Lakes to Tugun | QLD | Y | Initiative | Assessed later | Assessed by IA; summary released |
Thornlie Line Extension | WA | Y | Initiative | Assessed later | Assessed by IA |
Yanchep Rail Extension | WA | Y | Initiative | Assessed later | Assessed by IA |
New Bridgewater Bridge | TAS | Y | Initiative | Assessed later | Assessed by IA; didn't pass |
Central Walk | NSW | N | Initiative | None assessed or published |
|
North South Metro Rail Link | NSW | Y | Initiative | None assessed or published |
|
Princes Highway Upgrade (Albion Park Rail Bypass) | NSW | Y | None | None assessed or published |
|
Cranbourne Line Duplication | VIC | N | Initiative | None assessed or published |
|
Hurstbridge Line Upgrade Stage 2 | VIC | N | Initiative | None assessed or published |
|
Melbourne Airport Rail | VIC | Y | Initiative | None assessed or published |
|
Suburban Rail Loop | VIC | N | None | None assessed or published |
|
Sunbury Line Upgrade | VIC | N | None | None assessed or published |
|
Bruce Highway (Haughton River floodplain) | QLD | Y | Initiative | None assessed or published |
|
Rockhampton Ring Road | QLD | N | None | None assessed or published |
|
Bunbury Outer Ring Road (Stages 2 & 3) | WA | Y | Initiative | None assessed or published |
|
North-South Corridor (Torrens River to Darlington) | SA | Y | Initiative | None assessed or published |
|
Tonkin Highway Corridor Upgrades | WA | Y | Initiative | None assessed or published |
|
Notes: IA = Infrastructure Australia. INSW = Infrastructure NSW. BQ = Building Queensland. Includes all fixed infrastructure projects with expected total cost greater than $500 million, committed to since December 2016. Does not include budget items referring to a program of smaller works. 'Committed' here refers to a budget allocation being made for construction in a state or territory budget, or the Commonwealth budget in the case of Inland Rail. A business case for Bruce Highway (Haughton River floodplain) was unsuccessfully assessed by IA..
Source: Grattan analysis.
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131. 'Committed' here refers to a budget allocation being made for construction of the project in a state or territory budget.
132. Infrastructure Australia (2018a, p. 1).