State of growth: Victoria’s $100 billion infrastructure boom revealed
More than $100 billion worth of new roads, rail lines, hospitals, skyscrapers, prisons, wind farms and other infrastructure is being built or planned in Victoria as the state’s surge in the delivery of major projects gathers pace.
A spike in investment by governments and businesses in new projects in Victoria has pushed the value of what is being built or planned to a new high-water mark of $106.2 billion, a report by Deloitte Access Economics has revealed.
Victoria’s infrastructure boom outpaced all other states in the three months to June, Deloitte said, as the list of projects in development or under consideration grew by $18.5 billion.
The jump in investment by government and the private sector went against the national trend.
Nationwide, total investment in projects slumped by $39.5 billion to $712.4 billion in the June quarter.
Victoria’s share of the figure stood at $106.2 billion at the end of June, up from $76 billion at the same time last year.
While investment declined at a federal level, a breakthrough in negotiations between the Andrews and Turnbull governments over funding of two major transport projects helped to tip the value of Victoria’s infrastructure pipeline to its new high.
Among the new projects listed by Deloitte is the long-proposed rail line to Melbourne Airport, which has received a $5 billion commitment from both governments, and the $15.8 billion North East Link toll road, to which the Turnbull government has committed $1.75 billion.
The Victorian Government has given the green light to progress the detailed Business Case for the Melbourne Airport Rail Link, having selected the Sunshine Route as its preferred route.
Less than four months out from a state election, and with a criminal investigation into Labor’s misuse of parliamentary funds in 2014 threatening to steal its oxygen, the Andrews government seized on the report as proof its infrastructure agenda was paying off for Victorians.
“These projects vary in size and scope but they all leave an indelible legacy on our state,” Treasurer Tim Pallas said.
“They are indicative of a government that gets things done, delivering the infrastructure Victorians need, right across the state.”
Victorian Treasurer Tim Pallas. Photo: Jason South
Mr Pallas said more than 340,000 new jobs had been created in Victoria since November 2014.
The report confirms that the state government remains far and away the biggest investor in new projects in Victoria, with public investment far outstripping private investment.
It also suggests the boom shows no sign of slowing down.
There are 72 public or public-private partnership projects under way, with a value of $36.3 billion, and a further 50 such projects at planning stage, with a value of $33.9 billion, according to Deloitte.
Within the private sector there are 50 projects under way, with a value of $13.6 billion.
The biggest of these, the $2.5 billion Collins Square project, is due for completion in October.
Collins Square involves the construction of five commercial towers between Collins Street and Wurundjeri Way in Docklands.
The report also suggests the list of private projects will grow, with 70 planned projects valued at $22.4 billion still in the pipeline.
But some of these projects still await government approval.
For instance, the largest private project listed by Deloitte is a proposed third Melbourne airport at Koo Wee Rup, with an estimated price tag of $7 billion.
The Melbourne-based Paragon Premier Investment Fund revealed its intention to build a private airport at Koo Wee Rup to the Andrews government in July last year, but the project remains no more than a proposal for now.
The quarterly Deloitte Access Economics Investment Monitor includes only projects valued at more than $20 million.