New plan to keep track of project blowout costs

Information on how Victoria’s biggest infrastructure projects are tracking against their initial budgets will be published for the public to see.

The massive costs of Victoria’s biggest infrastructure pipeline will be published by Victoria’s financial watchdog in a bid to keep track of $80bn worth of projects.

The new dashboard provides information on all major projects over $100m, showing how they are progressing against the initial budget.

It shows about 30 per cent of projects had costs altered in 2019-20.

The new dashboard comes as pressure mounts on the Andrews government over blowouts on its signature “Big Build” items, including the Melbourne Metro project and the West Gate Tunnel.

The government dismissed the Auditor-General’s tool as containing “no new information” because the costs up to 2019-20 had been revealed in budget papers.

But last year’s state budget, which was delayed due to the pandemic, contained no total estimated investment costs for projects over forward estimates in what the state opposition said was a bid to hide from scrutiny.

Pressure is mounting on the Andrews government over blowouts on the Melbourne Metro project. Picture: Craig Hughes

The new dashboard assesses all major projects, not just well-publicised transport infrastructure, and found in 2019-20 more than a third had a change of completion date.

Data used is the most recent available, but does not include an announcement by the government last year its Metro Tunnel project, which will create an alternative to the City Loop, would cost $2.74bn more than budgeted.

The costs of that overrun are being shared between the consortium building the tunnel and taxpayers.

A government spokeswoman defended Labor’s record since embarking on its infrastructure blitz in 2015.

Daniel Andrews inspects the Metro Tunnel project.

“The majority of our projects are on time and on budget, supporting thousands of jobs — and the cost of not building would grind our growing state to a halt,” she said. “The government will continue to deliver the projects Victorians voted for, under the Liberal Nationals the dashboard would be empty — they did not deliver a single major transport infrastructure project in four years.”

The government also argues the dashboard doesn’t account for infrastructure projects being funded in stages, such as the level crossing removals program.

During a recent presentation by the state’s infrastructure chiefs, it was revealed about $10bn had been spent on that project so far, with 46 out of 75 grade separations so far completed.

The government has promised to publish its full infrastructure program at the next state budget, which is due to be handed down on May 20.