Pre-poll deadline on east-west link

Date
    October 1, 2013


The state government has ramped up a pledge to start building the east-west link before next year's election, announcing a short-list of three construction groups jockeying to deliver the $6 billion to $8 billion project.

With state Labor unambiguously opposed to the road, the Napthine government is determined to lock in a contract for the road as quickly as possible, revealing there are three bids being considered.      

Treasurer Michael O'Brien said the government was ''very confident'' its timetable - regarded by some in the business community as unrealistically tight - would be met, with the design due to be finalised next year and contracts to be signed just weeks before the 2014 poll.

''We have kept to our timetable, in fact we are slightly ahead,'' Mr O'Brien said. ''The consortia that we are engaging with have stuck to the timetables, we are very confident we are dealing with professional people who understand the importance of meeting deadlines.''


Among the shortlist is a group known as East West Connect, led by Lend Lease, which was threatened in November last year with a ban from all state government building projects because its union agreement breached the government's building code.

The Federal Court later ruled the state government had broken federal workplace laws by threatening not to use Lend Lease on the new Bendigo Hospital project.

Asked about the ban, Premier Denis Napthine suggested the election of the Abbott government meant the code was no longer needed because it had promised to re-establish the Australian Building and Construction Commission.            

The field of bidders also included the Inner Link Group, led by Spanish infrastructure giant Cintra, and Momentum Infrastructure, led by John Holland.

Dr Napthine said it was the strongest field ever assembled for a major construction project. ''We have assembled the global might of the world's leading tunnelling firms, as well as every major Australian construction firm,'' he said.

While the Coalition's political fortunes are tied to the road, Labor will campaign against the project. Opposition Leader Daniel Andrews, shadow treasurer Tim Pallas and finance spokesman Robin Scott will this week fly to New York to discuss the financial outlook for Victoria with ratings agencies Standard & Poor's and Moody's. It follows a report this week in The Age that Victoria may lose its maximum rating if it ramps up borrowing or spending in the lead-up to next year's election.

Of the three shortlisted bidders, the Inner Link Group consortia has the least local experience. A building industry source with close ties to one of the consortia said that ''in reality there are only two that have got the sort of local experience that the government can trust their future with. The third is just window dressing''.

Read more: http://www.theage.com.au/victoria/prepoll-deadline-on-eastwest-link-20130930-2uooy.html#ixzz2gPxYhsWF