Australia tunnel compensation package required?

The fallback option for a major road and tunnel project in Australia now includes the possible payment of compensation should construction delays hold back its opening. The potential compensation package is being planned by the Victoria State Government to Transurban for Melbourne’s massive US$4.73 billion (A$6.7 billion) West Gate Tunnel project. The size of the compensation fee remains as yet unannounced, although some estimates suggest it could be as high as $1.27 billion (A$1.8 billion). Transurban expe
January 10, 2019 Read time: 1 min

The fallback option for a major road and tunnel project in Australia now includes the possible payment of compensation should construction delays hold back its opening. The potential compensation package is being planned by the Victoria State Government to 891 Transurban for Melbourne’s massive US$4.73 billion (A$6.7 billion) West Gate Tunnel project. The size of the compensation fee remains as yet unannounced, although some estimates suggest it could be as high as $1.27 billion (A$1.8 billion). Transurban expects to receive compensation should contract terms for the project not be met. Construction of the West Gate Tunnel faces challenges due to disputes between the construction firm and the unions.

Finance & Funding

For more information on companies in this article

Related Content

  • Upgrade work for Melbourne’s urban roads
    February 25, 2019
    Improvements and upgrades will be carried out key routes in the west of Melbourne. The Australian city will benefit from US$1.27 billion (A$1.8 billion) of work, which includes boosting capacity on eight key routes. The road sections that will be upgraded include the Duncans Road interchange, the Forsyth Road interchange, Dohertys Road, Palmers Road, Derrimut Road and Dunnings Road. Bridge improvements will allow heavier trucks to use certain routes, including Geelong Road, Hyde Street and Ballarat Road. T
    Read More
  • Work for Melbourne’s major tunnel project restarts
    March 12, 2018
    Construction work is restarting on Melbourne’s West Gate tunnel project. Construction of the tolled tunnel link is costing US$5.2 billion (A$6.7 billion). The project is controversial and has met with considerable political opposition in Australia. Those against the link say that building a second river crossing is not necessary and that it will merely increase travel costs for drivers as it will be tolled. However those in favour of the link say that it is required due to the heavy traffic congestion. A
    Read More
  • Transurban to test Melbourne drivers in road trials, including tolls
    June 23, 2015
    Melbourne’s road users are the focus of a year-long study into what options are possible for funding road infrastructure projects including various user-pays models. The study headed by Australian toll roads operator Transurban will conducted across Melbourne’s entire road network to see how drivers react to tolling and other road-use models such as charging motorists for each kilometre travelled, a charge to access roads, annual fixed costs per kilometre on expected usage and price per trip. It will al
    Read More
  • Smaller contractors wanted for Melbourne’s North East Link project
    September 27, 2018
    Australia’s Victoria state government has moved to ensure smaller contractors get a share of the US$12 billion worth of Melbourne city’s North East Link contracts. According to a report in the Australian Financial Review, Victoria state treasurer Tim Pallas said that consortiums bidding for North East Link could not include more than one of the top three local contractors. This is to encourage more international companies and smaller Australian contractors to tender for the proposed 26km project.
    Read More

Highlighted Content