Go West: Turnbull banking on major infrastructure including new rail line

MALCOLM Turnbull will create a multibillion-dollar infrastructure bank to fund major projects across the country, including a new Western Sydney rail line.

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PRIME Minister Malcolm Turnbull will create a multibillion-dollar government-backed infrastructure bank to fund major projects across the country, including a new Western Sydney rail line.

For the first time a federal government will seek to use its AAA-rated balance sheet and record low interest rates to underwrite the rebuilding of the nation’s capitals and regional centres. An initial $50 million will be allocated from next week’s Budget to establish a “brokerage” unit that would act as a hub for assessing income earning projects.

All projects would be vetted first by Infrastructure Australia.

Prime Minister Malcolm Turnbull / Picture: Luke Bowden

The government expects it will attract billions of dollars of capital investment to Australia, which is estimated to have a $110 billon infrastructure deficit.

The Western Sydney rapid rail project to link the CBD with the second airport at Badgerys Creek and urban growth centres throughout Western Sydney will be at the top of the project priority list.

It would essentially scrap the “big blank cheques” for government pet projects.

The Cities Deal plan to be unveiled today by Prime Minister Malcolm Turnbull and Cities Minister Angus Taylor will map out a program to ­attract more private capital into major projects.

Its goal will be to create “30-minute” cities within cities which would see people travel no more than half an hour ­between work and home.

The model, based on the UK’s successful Cities Deal would see the government lend funds to private sector to help finance major projects.

It would also force state governments to adopt better planning conditions in return for investment.

The projects would include major transport infrastructure but also housing, employment zones and amenities.

The Western Sydney rapid rail project to link the CBD with the second airport at Badgerys Creek and urban growth centres throughout Western Sydney will be at the top of the project priority list / Picture: AAP

It will also focus on relieving congestion hot spots. Western Sydney will be a major focus of the new Cities Deal.

“With more people in our outer suburbs, more people are travelling longer to get to work. In Western Sydney a net outflow of 200,000 people leave the region each day for work. This is forecast to grow to 340,000 by 2041.8,” the Cities Deal report said.

“The concentration of so many people in one place ­results in crowded transport ­systems. Urban congestion is estimated to cost over $16.5 billion every year, and forecast to reach between $27.7 and $37.7 billion by 2030.”

Government will use its ­balance sheet and low interest rates to act as a bank to lend money to investors for major projects that can prove an income generating return, create jobs, relive congestion and make housing more affordable.

The Western Sydney rail line to Badgerys Creek is understood to be top of the ­priority list for Sydney.

Cities Minister and Western Sydney MP Angus Taylor said: “Cities Deal will insist on goals and outcomes — more affordable housing, homes connected to jobs through ­better transport, technology solutions to improve livability.

“Western Sydney is a strong case in point. We’re going to need to find different ways of financing big investments.’’