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North East Link Project, VIC

North East Link Project, VIC
Client:
Major Road Projects Victoria
Project Value:
$16 billion
Years of Service:
2019
Services Provided:
  • Transaction Management
  • Commercial Advisory

The North East Link project provides an essential link in Melbourne’s freeway network, while also improving travel on the Eastern Freeway.

The project aims to significantly reduce travel times, provide a viable and fast alternative to local roads use for heavy haulage vehicles and links key growth areas in the north and south east.

The North East Link begins in Nunawading with a massive expansion of the Eastern Freeway, adding up to seven new lanes and almost doubling the size of the existing freeway. The project will build Victoria’s longest road tunnel, from Bulleen Road to Lower Plenty Road in Rosanna, before connecting with the M80 Ring Road in Greensborough.

CLIENT'S OBJECTIVES:

The project aims to significantly reduce travel times, provide a viable and fast alternative to local roads use for heavy haulage vehicles and links key growth areas in the north and south east.

The North East Link begins in Nunawading with a massive expansion of the Eastern Freeway, adding up to seven new lanes and almost doubling the size of the

existing freeway. The project will build Victoria’s longest road tunnel, from Bulleen Road to Lower Plenty Road in Rosanna, before connecting with the M80 Ring Road in Greensborough.

As part of the upgrades to the Eastern Freeway, North East Link will create the Doncaster Busway, a new express bus service from Doncaster through to Abbotsford.

With the business case nearing completion and detailed planning underway, the Expression of Interest (EOI) process is being supported in order to build the biggest road project in the State’s history.

The construction of the early works program began in 2020 and involves $200 million in works.

The North East Link project is estimated to cost $16 billion and the entire procurement process will take more than a year and a half to complete.

OUR ROLE:

Our Advisor led the multi-consultant transaction management team that was responsible for the evaluation and shortlist recommendation of all of the EOI respondents to the $200 million Early Works package.

Our Advisor’s transaction management capabilities were crucial to the initial de-risk phase of the projects development to ensure the pre-qualification of only capable project delivery proponents and as a key pre- requisite to proceeding to the next milestone in the delivery of this complex project.

Services delivered by our Advisor included:

  • developing the evaluation plan, program and methodology
  • overseeing the evaluation process and team (40 personnel inclusive of Advisors)
  • leading and facilitating evaluation meetings and briefings with the evaluation team, Department of Treasury and Finance, and the Executive
  • developing and finalising evaluation reports with Evaluation Panel and Work Group Leads, and
  • overseeing and maintaining probity requirements throughout the process.

Our Advisor provided Early Works transaction management and coordinated inputs from the project and evaluation teams (including technical and legal advisors). In addition, the Advisor supported the approvals process up to the Treasurer in the pre-selection of the $200 million Managing Contractor and as a key component to the initial procurement phase and in conjunction with NELP.

Throughout the process, and in accordance with the probity guidelines, our Advisor provided strategic advice on the direction of the analysis. By specifically addressing issues with proponents’ bids, they ensured that key inputs from external technical, commercial, and operational priorities were considered during the early EOI phase.

ACHIEVEMENTS, SOLUTIONS AND VALUE ADDS: 

The North East Link project provides an essential link in Melbourne’s freeway network, while also improving travel on the Eastern Freeway.

Our Advisor was an integral member and the nominated leader of the evaluation team, which successfully concluded the review and EOI process within tight project timeframes. Our Advisor led the evaluation team’s output to ensure that the objectives of the Early Works package, predominantly made up of 75 high priority service relocations, in de-risking the primary package (tunnel) were achieved.

This was achieved by employing a dynamic and responsive approach to ensure the intensely interactive process accurately captured the value of each proponent in accordance with the assessment criteria and provided the State with the best value for money proposition.

CG Team Members Involved:

Dan Tyson Dan Tyson Director Raj Agnihotri Raj Agnihotri Senior Advisor

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