The Melbourne Metro authority has announced it is seeking to assess the private sector's interest in participating on the Melbourne Metro project. According to the Registration of Interest form found on the authority's website, an early works packages will be delivered under a Managing Contractor model with expressions of interest closing in late December 2015.
The Registration of Interest form points to five proposed work packages with an availability private-public partnership (PPP) type package to build the tunnels, stations (including fit-outs) as well as installing the mechanical and electrical systems and the maintenance of the infrastructure.
The other four packages include two alliance packages for the construction of the eastern portal in South Yarra and another for the implementation of a high capacity singalling system, overhead traction power installation and a train control system.
A 'wider network enhancements' package which according to the Registration of Interest document will relate to the installation of turnbacks and signalling system upgrades across the wider existing rail network along with the early works package rounds out the five listed in Appendix A.
A PPP generally involves the private sector organising project finance, builds (and owns) the infrastructure and then provides it to the state to use and receives a payment in return; this is how the Peninsula Link was structured.
There will be significant opportunities for private sector involvement in the $9-11 billion project, with opportunities for a range of contractors, designers and suppliers.
Melbourne Metro Rail: Tenders and Service Providers
- An availability based Public Private Partnership valued at approximately $5 billion will include design and construction of the twin nine-kilometre tunnels and five underground stations, private finance and the provision of maintenance and other services during the operating term. The EOI for the PPP contract is expected to be released in mid 2016.
- Certain early works will be delivered under a separate contract, including utility services relocation and protection and other site preparatory works. The EOI for this early works contract will be released in November 2015.
- There will be several Alliance packages to deliver works that need to be integrated with the existing rail network in a live operational environment.
- We will be looking to partner with companies with knowledge and experience in managing complex projects in busy urban environments.
Underline and bold emphasis is mine: the proposed PPP package component states it will have an approximate value of $5 billion or half the total $9-11 billion cost. To compare, you can see a breakdown of the Sydney Metro contracts in the Sydney Metro forum thread.