Page 2700 - Week 09 - Tuesday, 16 September 2014
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As the minister responsible for Canberra’s light rail project, I am pleased to confirm to the Assembly again today that the government has agreed to procure the capital metro light rail project as outlined in the approved business case via an availability private-public partnership. By committing to capital metro, the ACT Labor government is backing public transport. It is backing Canberra’s infrastructure investment. It is backing the revitalisation of the Northbourne Avenue corridor. It is backing smarter land use and it is providing a significant economic stimulus and diversifying the territory’s economy.
Capital metro will be delivered as a public-private partnership to ensure price certainty and to minimise the risk borne by taxpayers. It is the right and responsible way to deliver and operate light rail. The funding mechanism is a common-sense decision that will provide the best value outcome by making use of proven expertise. The government has clearly not previously built, owned or operated a light rail system so it makes sense to seek the best expertise the nation and indeed the world can offer, and there is no doubt after yesterday’s industry briefing that this project is attracting significant attention.
By funding it as a PPP, the territory is opening up the project to national and international experienced operators and financiers, driving a competitive and value-driven process. Much experience has been applied to the selection of the PPP approach. The author of the latest authoritative book on PPPs has been closely involved in developing this approach. The capital metro project board chair, Mr John Fitzgerald, has extensive experience in successful PPP delivery. The government has looked at recently successful PPP approaches applied to the delivery of light rail in Sydney and on the Gold Coast.
Under a PPP the territory does not begin paying for the service until it is operational. The territory will then start making regular payments over time, similar to a home loan but also including ongoing operational costs. An availability PPP means the expenditure is spread over future decades, ensuring that light rail costs are paid for by future users.
Following positive market sounding and over 300 local, national and international representatives attending yesterday’s industry briefing, the government is confident that the project is attracting strong interest and proposals from the market, which will in turn drive a competitive price, value for money and high quality outcomes for the territory.
The government intend to release the business case when it is prudent and sensible to do so, at a time that is appropriate in the procurement process. We are currently seeking advice on whether any of the current business case may negatively affect the procurement process. But all things being equal, we anticipate its release on 31 October. This investigation, combined with our intent to release a suite of documents, means the government currently intend to share the business case at the same time as the release of the EOI process which, as I have said, is on 31 October.
The government is committed to taking this unusual step of releasing the business case at the same time as the EOI to demonstrate the open and transparent delivery of
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