The project comprises the largest infrastructure private-public partnership (PPP) in Australia and the largest design and construction project in Victoria. When complete, it will add the missing link in Melbourne’s freeway network.
Preferred bidder Spark includes Webuild, GS Engineering and Construction, CPB Contractors, China Construction Oceania, Ventia, Capella Capital, John Laing Investments, DIF and Pacific Partnerships.
Milan-based Webuild will design and build the twin three-lane tunnels. Its stake in the project amounts to AU$3.3bn (US$2.48bn) and it will own a 7.5% stake in the project company that will operate and maintain the infrastructure over a 25-year period.
The tunnel will be the longest road tunnel in Victoria and is now 1.9km longer than originally planned. It will run beneath the Yarra River and Banyule Flats, and interchanges at Manningham Road and Lower Plenty Road in the northeast of the city. The link project is expected to slash journey times between the northeast and south-east of the city by around 35 minutes.
The project also has strong environmental credentials: as well as creating thousands of local jobs, it will cut travel times for commuters and freight, take an estimated 15,000 trucks off local roads, improve congestion and create around 10,000 jobs in Victoria.
Transport infrastructure minister Jacinta Allan said: "The tunnels are just one part of a massive investment in the northeast – this project will change the way people move around Melbourne and deliver road, bus, walking and cycling upgrades."
The project is expected to be completed by 2028.
