Victoria's Submission to Infrastructure Australia

Executive Summary

The Victorian Coalition Government is pleased to nominate projects for consideration by Infrastructure Australia. The submission has been developed in the context of increasing demand on our transport networks, a growing freight task driven by increased volume and product diversity of exports to trade partners, declining productivity growth across the economy, escalating construction costs and a tight fiscal environment.

This submission has been developed using Infrastructure Australia's Reform and Investment Framework and taking into account Infrastructure Australia's recent statements that it will only consider projects in excess of $100 million. Along with other transport projects, Victoria will be undertaking a number of infrastructure projects that fall outside these guidelines such as schools, hospitals and other state based service-orientated infrastructure.

Victoria's nominated projects are supported by important reforms and strategic frameworks

Victoria's projects are part of a much broader infrastructure agenda, which is based on:

• new strategic policy frameworks;
• important new reforms; and
• rigorous new processes.

Key strategic frameworks that will shape the Victorian Government's broader infrastructure agenda include the metropolitan planning strategy and Regional Growth Plans. These frameworks will form the basis of a shared vision to guide Victoria's growth and change over the next 30 to 40 years. The nominated Infrastructure Australia projects will provide an important context for development of this vision whilst also responding to well-understood and pressing challenges within Victoria.

This work is supported by key policy reforms across the water, energy and telecommunications sectors. The government is improving Victoria's water systems to achieve integration and resilience through the Victorian Government's Living Melbourne, Living Victoria policy, supporting appropriate reforms to prepare for a changing energy market, and pursuing initiatives to address gaps in key telecommunications markets.

The Victorian Government is implementing key reforms to address some of Victoria's long standing and well understood challenges. Recognising this, one of the first steps, the Victorian Government took was to institute new and more rigorous processes for decision making on infrastructure projects.

Victoria has found greater value for money through increased rigour and reform

The Victorian Government has introduced rigorous planning processes to evaluate projects to ensure that the right projects are put forward, to be delivered in the right way and at the right time.

As a result of these reforms, the Victorian Government has significantly re-scoped and improved a number of previously nominated projects and identified opportunities for greater private sector involvement.

The Victorian Government is using these new processes to further develop key election commitments before submitting them to Infrastructure Australia for consideration.

Recognising that funding at all levels of government is limited, the submission's nominated projects are practical and pragmatic responses to Victoria's key infrastructure challenges. Importantly, these projects can be accelerated should the funding environment change.

The nominated projects demonstrate that the Victorian Government is:

• taking action to maximise the efficiency of existing infrastructure through initiatives such as boosting capacity on the Dandenong Rail Corridor, trialling high capacity signalling and progressively removing level crossings to alleviate congestion;
• unlocking development capacity in Melbourne through identifying integrated urban renewal opportunities;
• progressing new, strategic city-shaping projects that would increase capacity at the core of the transport network through an improved Melbourne Metro project and East West Link project, which will deliver better value for money for Victorians;
• planning for and protecting transport corridors to Victoria's international and domestic airports, including creating links to Avalon as Victoria's next international airport; and
• increasing the capacity of the State's ports and freight networks to meet the nation's growing freight task by supporting the fast tracked development of the Port of Hastings.

Work to finalise priorities for the next round of the Nation Building Program will also be informed by the Victorian Government's reform agenda. The Victorian Government will continue to engage with the Commonwealth Government and Infrastructure Australia as this work progresses.

Supporting economies in all parts of Victoria and maintaining and improving liveability outside of Melbourne is a key priority for the Victorian Government and a number of the nominated projects aim to improve connectivity and drive economic development in regional Victoria.

Victoria is calling for shared action on common issues

Consistent with the Victorian Government's commitment to value for money in its investments, the submission requests the support of Infrastructure Australia and the Commonwealth to address key challenges that are common to all Australian jurisdictions. These challenges include tackling escalating construction costs, achieving integrated urban renewal and building more resilient water supplies, such as the better use of storm water.

Where to from here

Victorians are proud of their diverse and strong economy, crucial contribution to the national economy, world-renowned liveability and history as a leader and innovator in infrastructure development and delivery. The Victorian Government submission provides a practical and pragmatic approach to build on this reputation and drive improvements for the Victorian and national economies. To this end, the Victorian Government looks forward to working with Infrastructure Australia and the Commonwealth Government to progress Victoria's nominated projects.