But the estimated total cost of the project never included the interchanges, a report by the Victorian Auditor-General’s Office (VAGO) revealed on Wednesday. And not enough had been budgeted for the parking at Glen Waverley, the audit said in a warning of possible cost blowouts.<\/p>\n
The Suburban Rail Loop Authority (SRLA) explained the items had not been counted towards the total cost because the government never agreed to building them.<\/p>\n
“These items represent potential future scope options, not approved project costs,” the SRLA told VAGO.<\/p>\n
“It is standard practice on major infrastructure projects for optional or additional scope elements to be identified, assessed and considered separately from the approved scope until a final decision is made regarding their inclusion.<\/p>\n
“Accordingly, no cost liability exists until government determines whether these items will proceed.”<\/p>\n
A government spokesman insisted the decision to avoid “unnecessary scope” would reduce the total estimated investment to $33.3 billion.<\/p>\n
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The government was hoping the cuts would slash the cost from $34.5 billion to $33.3 billion. (Supplied: Victoria’s Big Build)<\/p>\n
Government insists adequate contingencies in place<\/p>\n
The report confirmed authorities had been preparing to abandon the possibility of building station interchanges at Glen Waverley and Box Hill for months, challenging Mr Carroll’s claim the savings amounted to a “new direction” under his leadership.<\/p>\n
Box Hill was not projected to be awash with extra commuters for decades, the SRLA told VAGO, and adding an interchange at Glen Waverley may not be value for money “given the advanced age and significant upgrade costs needed for the existing Metro station”.<\/p>\n
VAGO said the interchanges at Cheltenham, Glen Waverley and Box Hill stations would cost a total of $1.7 billion but that just $104 million had been included in the total estimated cost of the project. The Glen Waverley and Box Hill interchanges are not proceeding.<\/p>\n
Latest estimates found the multi-level car park was likely to cost $137 million, but only $84 million had been included in the total estimated cost of the Suburban Rail Loop. Contracts for $7.5 million in design work had already been signed.<\/p>\n
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A map of the proposed suburban rail loop for the outer suburbs of Melbourne. (Supplied: Infrastructure Victoria)<\/p>\n
Despite the announcement it will not proceed, VAGO said the car park was necessary to get approval through the environmental effects statement process.<\/p>\n
Asked by the opposition about the supposed savings in question time on Wednesday, Public Transport Minister Vicki Ward said the government had used scrutiny to identify the savings.<\/p>\n
Further details of cuts were commercial in confidence, Mr Carroll said on Tuesday. But the government hopes to find another $1 billion saving following a technical review.<\/p>\n
The government has rejected VAGO’s finding that the SRL East, which will connect Cheltenham to Box Hill, is unlikely to be delivered on time and on budget.<\/p>\n
But the watchdog found the SRLA, which will be abolished under Mr Carroll’s announcement this week, has already burned through a “significant portion” of the $9.5 billion set aside to deal with unforeseen risks. The government insists there are adequate contingencies.<\/p>\n
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The Department of Treasury and Finance and Department of Premier and Cabinet have consistently warned the government that the state budget cannot fully fund the project “without limiting spending in other areas and missing fiscal targets”, the audit said.<\/p>\n