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Industry News, Latest News, Victoria

Victorian construction gets billion dollar boost

Buildings approvals for housing in Victoria have declined in November according to new data released by the Australian Bureau of Statistics.

Combined funding worth $1 billion will flow to Victorian projects, with $370 million to be spent over the next 18 months, as part of a joint announcement from the State and Federal Governments.

The infrastructure funding package includes the Federal Government bringing forward $262 million for early works on the North East Link and more than $184 million in additional funding for the Monash Freeway Stage 2 project which commences next year.

Funding from the Federal Government has been allocated to to help prop up the Australian economy and bring forward critical infrastructure construction projects around the country.

Prime Minister Scott Morrison said delivering critical projects sooner, as part of the government’s $100 billion pipeline, was responsible and considered economic management.

“We’ve been working closely with the Victorian Government to identify the projects that are shovel-ready to get them moving,” Morrison said.

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“We want these road and rail projects delivered as quickly as possible so Victorians can benefit from better infrastructure and the jobs and investment that come with it.

“We will bring forward $269 million in federal funding for existing projects on top of the $184 million we committed to Stage 2 of the Monash Freeway upgrade back in September.”

Victorian Premier Daniel Andrews welcomed the deal, which fast-tracks spending on road projects across the state.

“I’m pleased to have struck this significant agreement, which will help us deliver the vital second stage of the Monash Freeway Upgrade,” Andrews said.

“We’ll continue working closely with the Federal Government to deliver the major projects our state needs and help create Victorian jobs.”

Deputy Prime Minister and Infrastructure, Transport and Regional Development Minister Michael McCormack said the Federal Government was investing heavily in key roads in regional Victoria that are vital to safety and supporting the economy through improved connectivity to the regions and to our markets.

“The government recognises the need for these key rural roads to receive the upgrades they need to be safer, more efficient transport corridors as soon as possible,” McCormack said.

The package includes additional funding for regional projects including $32.6 million for the South Gippsland Highway realignment between Koonwarra and Meeniyan and $28.7 million for the Echuca-Moama Bridge.

“Upgrading these highways will improve safety and travel times on some of Victoria’s busiest freight and passenger road corridors.”

Federal Treasurer Josh Frydenberg said the investments would flow within months.

“There’s $370 million of the new package that will be spent in just the next 18 months to get these projects done,” Frydenberg said.

Project funding brought forward:

      • $262 million for early works on the North East Link
        • Funding to flow immediately over the forward estimates in support of the $15.8 billion project.
        • The Australian Government contribution to the project is $1.75 billion ($262 million brought forward).
        • The Victorian Government is providing the remaining contributions to the project.
      • $7.1 million for Commuter Car Park Upgrades – Northern Lines at Craigieburn and Hurstbridge
        • Funding to flow immediately this financial year to enable the commencement of works.
        • Australian Government contribution to Commuter Car Parks projects on these lines is $70 million ($7.1 million brought forward).

Additional funding:

    • $183.8 million for Stage 2 of the Monash Freeway Upgrade
      • Funding to flow immediately and enable construction to commence in January 2020.
      • Total cost of both stages of the Monash Freeway Upgrade has increased from $1 billion to $1.37 billion.
      • The Australian Government contribution to the project is $683.8 million.
      • The Victorian Government contribution to the project is $683.8 million.
    • $32.6 million for the South Gippsland Highway realignment between Koonwarra and Meeniyan
      • Funding to flow immediately to enable construction to commence early next year with the Victorian Government also providing additional funding of $32.6 million.
      • Total cost of the project has increased from $50 million to $115.2 million.
      • The Australian Government contribution to the project is $57.6 million.
      • The Victorian Government contribution to the project is $57.6 million.
    • $28.7 million for the Echuca-Moama Bridge
      • Funding to flow immediately to enable completion in mid-2021 with the Victorian Government providing additional funding of $15 million.
      • Total cost of the project has increased from $280 million to $323.7 million.
      • The Australian Government contribution to the project is $125.7 million.
      • The Victorian Government contribution to the project is $111 million.
      • The New South Wales Government is also contributing $87 million towards this project.

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