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Metro Tunnel

Project delivery

The Metro Tunnel is a major enhancement to Melbourne's rail network and will need to integrate with the existing system. A procurement and delivery strategy has been developed to respond to the unique challenges this poses.

The proposed delivery strategy was validated with the market as part of a market sounding process. We have invited tenders and service providers to express interest in delivering the following scope elements of the Metro Tunnel project.

Works Package Procurement model Procurement status
Early Works
Utility service relocations and works to prepare construction sites
Managing Contractor Contract awarded June 2016 to John Holland. Enabling works commenced.
Tram infrastructure works Franchisee Works (Yarra Trams) To be engaged in early 2017.
Construction power Utility Service Provider works To be engaged in early 2017.
Tunnel and Stations
Main tunnelling works, five underground stations, station fit-out, mechanical and electrical systems and specific maintenance services for the infrastructure delivered by the package and commercial opportunities at the new stations
Availability based Public Private Partnership Expression of Interest issued to market 28 April 2016

Shortlist announced on 11 August 2016. Request for Proposal now released.
Rail Infrastructure
Works at the eastern and western portals including cut and cover tunnelling, decline structures, turn backs and local reconfiguration and realignment of existing lines
Competitive alliance Expression of Interest to be issued to market mid-2017.
Rail Systems
Rail systems design (including conventional signalling, high capacity signalling, train and power control systems and operational control systems), installation works, rail systems integration and commissioning
Competitive alliance Expression of Interest issued to market 12 May 2016.

Shortlist announced on 15 September 2016.
Wider Network Enhancements
Proposed to include works which are required across the wider network including track modifications, station upgrades and signalling system upgrades
Case by case Market engagement to be developed case by case.

Tunnel and Stations: Public Private Partnership

A multi-billion dollar availability based Public Private Partnership (PPP) 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.

Three consortia have been shortlisted for the PPP:

  • Continuum Victoria – comprising ACCIONA Infrastructure, Ferrovial Agroman, Honeywell, Downer EDI and Plenary Origination
  • Cross Yarra Partnership – comprising Lendlease Engineering, John Holland, Bouygues Construction and Capella Capital
  • Moving Melbourne Together – comprising Pacific Partnerships, CPB Contractors, Ghella, Salini Impregilo, Serco and Macquarie Capital

A partnership with the private sector will help to drive innovation, best practice and value for money on the project. In an 'availability PPP' the State Government provides regular payments to the private party for making the asset 'available' for use. For this package, that will mean making the tunnel and stations available for public transport operations and Victorians to use.

Rail Systems and Rail Infrastructure: Competitive alliance

The Rail Systems and Rail Infrastructure packages will be procured through separate competitive alliance processes in which direct price competition will be assessed along with non-priced criteria. The membership of both alliances will generally be comprised of the State, rail operators and constructors and will work as an integrated, collaborative team to deal with key project delivery matters in good faith, act with integrity and make best-for-project decisions.

The Rail Systems Alliance (RSA) will include the design, supply, installation, testing, integration and commissioning activities in relation to train and power control systems, operational control systems, conventional and high capacity signalling. 

Two consortia have been shortlisted for the RSA contract:

  • A consortium comprising CPB Contractors and Bombardier Transportation.
  • The MetroConnect consortium comprising John Holland, Siemens and UGL.

The Rail Infrastructure Alliance (RIA) will include works at the eastern and western portals including cut and cover tunnelling, decline structures and local reconfiguration and realignment of existing lines. The EOI for the RIA contract is expected to be released mid-2017.

Early Works: Managing Contractor

An initial program of works including protection and relocation of utility services such as gas, sewer and water mains, demolition and road and footpath changes will be delivered under the Early Works Managing Contractor contract. 

A Managing Contractor procurement model involves the client engaging a supplier (the Managing Contractor) through a competitive tendering process to manage the development of design, construction documentation and manage construction works on its behalf.

Works on tram infrastructure are proposed to be undertaken by Yarra Trams (under the existing tram franchisee agreement).

The supply of construction power will be separately procured through the relevant utility service providers by early 2017.