Consortium sues state government over rejection of Werribee “super city”

It was the Werribee “super city” that promised to be a job bonanza for Melbourne’s west. But the Andrews government project has been labelled a “shambles” after the plug was pulled in a shock move last month.

An artist impression of the East Werribee precinct.

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The Andrews Government faces a potential $100 million compensation claim over its rejection of a “super city” plan in Melbourne’s west.

Backers of the $31 billion Australian Education City concept have accused the government of bias, and lack of transparency and fairness in an explosive Supreme Court writ.

AEC said it had spent about $93 million developing its proposal for a hi-tech education, research and housing precinct featuring up to 90,000 jobs and 70,000 residents in East Werribee.

Artist's impression of Australian Education City project for East Werribee.

But as revealed by the Herald Sun, the government pulled the plug on the project last month after appointing AEC as preferred bidder for the 400ha state-owned site in October 2015.

The move shocked supporters of the project, such as the City of Wyndham, which fears that the land may be sold off for housing and not used to develop jobs and innovation.

In its writ against the Victorian Planning Authority and other state agencies, AEC claimed the government’s decision lacked transparency, reasons and procedural fairness.

“The Plaintiff developed a highly valuable, funded, detailed, innovative and unique model for the development of a new city in Victoria, and the State has had the benefit of receiving...ideas, information and analysis in relation to that model,” it said.

“The purported decision was affected by apprehended bias (and) lacks intelligible justification.”

The proposed Australian Education City.

AEC is seeking an order to quash the decision so it can resume working on the project.

But the government also faces the prospect of a massive compensation claim by AEC to recoup the $93 million it claimed to invest over five years.

Its writ said that AEC was an Australian-owned consortium with partners including firms PwC, IBM, Telstra, Cisco, JP Morgan, Fortune Global 500 company Power China, and had support from the China Development Bank.

Its executive chairman is Chinese-Australian businessman Bill Zheng, and CEO is former Docklands authority boss John Tabart, while former Labor premier John Brumby is a former adviser.

Sources have previously told the Herald Sun that the project hit problems amid conflicting views within government about its viability, and rising concern about Chinese investment in the venture.

Another view of AEC’s plans for East Werribee.

Opposition priority precincts spokesman David Davis said the process had been a shambles from the start.

“Premier Daniel Andrews needs to come clean on the cost of his government’s incompetence in blundering the East Werribee precinct process,” he said.

Both the government and AEC declined to comment as the matter was before the courts.

However, it is understood the government will continue discussions with AEC.

Priority Precincts Minister Gavin Jennings told state parliament earlier this month that there were concerns about the international universities that had signed up for the project.

Mr Jennings also questioned how the precinct’s design would have fitted in with major plans like Airport Rail Link and Suburban Rail Loop.

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@JMasanauskas