Victorian premier plans to make $2b saving on Suburban Rail Loop

Victorian Premier Ben Carroll to announce $2b in savings on Suburban Rail Loop In short: Victorian Premier Ben Carroll is hoping to save $2 billion on the first leg of the Suburban Rail Loop. "Unnecessary additions to the project's scope" worth about $1 billion will be cut and a further $1 billion worth of savings will be identified in an independent technical review. The project was budgeted at up to $34.5 billion but the government hopes the savings will bring its price tag closer to $32.3 billion. Victorian Premier Ben Carroll will announce $2 billion in savings on the first leg of the Suburban Rail Loop (SRL), half of which is yet to be identified. The SRL East, connecting Cheltenham to Box Hill, a project championed by former premiers Daniel Andrews and Jacinta Allan, was budgeted at up to $34.5 billion. But the government will on Tuesday announce about $1 billion worth of "unnecessary additions to the project's scope" will be cut, making the total estimated investment $33.3 billion. A further $1 billion saving will be identified in an independent technical review, which the government hopes will make the project closer to $32.3 billion. Until then, further contracts will not be awarded. The Victorian government — which has already signed more than $14 billion worth of contracts — was shortly due to ink contracts to construct the six stations. 'Unnecessary' extras to be scrapped The "unnecessary" extras that will no longer go ahead include underground station interchanges at Box Hill and Glen Waverley. The government will also find "alternative ways to deliver sufficient parking in Glen Waverley". Clayton will only have one station entrance, rather than two, and Burwood and Cheltenham will lose "complex pedestrian bridges". The SRL community projects fund — grants for local groups surrounding the planned stations — will come to an end after this round and some future precinct works will be scaled back, the government said. The Suburban Rail Loop Authority will also be absorbed by the Victorian Infrastructure Delivery Authority to reduce duplication. "I respect your money," Mr Carroll said in a statement. "The SRL will be built on time. Today's changes mean it will be built under budget." Tunnelling will still begin next month, making the task for Opposition Leader Jess Wilson more challenging if elected in November. She has promised to pause and review the project. "We don't have the visibility that the premier has," Ms Wilson told radio station 3AW on Monday. "I say to the premier, why don't we make all of the contracts public so all Victorians can understand what they've been signed up to? And if we have that visibility then we can make that informed decision." The government has not yet explained whether cutting these extras will impact the cost-benefit ratio, an analysis to determine whether the benefits to the community outweigh the costs. Mr Carroll had fuelled speculation he could review contracts and redirect funding to other priorities, such as his preferred project Airport Rail Link, when he took over as leader last month. "There are other projects that are so much more needed and urgent, and I want to make sure Victorians know I'm governing for every corner of this state," he told 774 Melbourne Radio on Monday. The state has been under pressure to explain how the $34.5 billion price tag had not grown in line with inflation, given cost blowouts on other taxpayer-funded construction sites. Victoria is counting on one-third of the budget to be funded by the federal government, which has so far committed $6 billion. The state government hopes another one-third of the cost will be recovered through taxes and charges, known as value capture. Mr Carroll's cabinet reshuffle also abolished the transport infrastructure and Suburban Rail Loop portfolios.