The preferred bidder for the largest Suburban Rail Loop contract has been revealed

The Allan government has chosen a preferred bidder for the largest package of works on the Suburban Rail Loop, as it ploughs ahead with the controversial $34.5bn project.

The Allan government has selected a preferred bidder for the largest package of works on its controversial $34.5bn Suburban Rail Loop East.

A contract for the package, which includes building trains, fitting out tunnels, and running and maintaining the 26km line between Cheltenham and Box Hill, is expected to cost at least $9bn.
TransitLinX, which includes Chinese construction giant John Holland, RATP Dev, Alstom, KBR and WSP, was selected to negotiate the mega contract, which is expected to be signed later this year.

The preferred bidder was selected ahead of a consortium that included Gamuda Engineering, Keolis Downer, Siemens, AECOM, GHD, Hyundai Rotem and Downer Rail.

Industry sources said the decision came despite John Holland’s recent track record on the Metro Tunnel and West Gate Tunnel, which have experienced combined budget blowouts worth more than $8bn.

It also comes amid furious debate about whether Victoria should prioritise a $34.5bn rail line, which the government says will usher in 70,000 extra homes around stations including through suburban high rises, in it current financial situation.

Premier Jacinta Allan at the SRL Clarinda construction site. Picture: Luis Enrique Ascui

A time frame for selecting the preferred contractor was due to expire this month, and it is understood the SRL Authority was ready to announce the successful bidding group during the federal election campaign but a decision was delayed.

During the election campaign, Opposition Leader Peter Dutton promised to claw back federal funding for the project if he was elected prime minister.

The Albanese government had provided $2.2bn towards the project, but has so far baulked at topping that up due to issues raised about the project’s business case raised by Infrastructure Australia.

Concept designs for Suburban Rail Loop stations have been released.

Victorian Labor wants the Commonwealth to provide a third of the project’s funding, which is expected to be at least $11.5bn, while it is banking on a further third of funding to come from taxes on land around planned stations.

After Mr Dutton’s demoralising loss at the election, Premier Jacinta Allan declared that voters had backed the Suburban Rail Loop and provided a mandate for getting on with the project, but the state opposition says it should be cancelled due to the state’s financial circumstances.

There have already been $7.5bn worth of deals inked for the SRL East, which is the first stage in a 90km plan for an orbital rail loop around Melbourne.

This includes $5.3bn in deals to tunnel between Cheltenham and Box Hill, which allows for stations to also be built at Clayton, Monash University, Glen Waverley, and Burwood.

Opposition major projects spokesman Evan Mulholland said the government had the wrong priorities.

“In the same week ratings agencies warn the government to rein in spending, Jacinta Allan charges ahead with her reckless Suburban Rail Loop,” he said.“Victorians now know the truth – the $2.1 billion tax hike through the fire services levy and billions ripped from our public schools are the price of Jacinta Allan’s vanity project.”

Originally published as The preferred bidder for the largest Suburban Rail Loop contract has been revealed