North East Link tunnels extended in series of changes to mega project

A decision to alter the tunnels for the mega North East Link project has come with a staggering new price tag. See the map.

Tunnels for Melbourne’s new North East Link toll road will be lengthened by 1.9km to reduce the impact on local communities — but will cost an extra $2.1 billion.

The main contract for the mega project, which will connect the M80 in Greensborough to the Eastern Freeway in Bulleen, was signed between the Andrews Government and the Spark consortium led by the Italian-based WeBuild group.

Estimated to cost up to $9bn three years ago, the scope changes and cost pressures on international infrastructure resulted in the tunnels package being locked in for $11.1bn.

Premier Daniel Andrews and Transport Infrastructure Minister Jacinta Allan said “it is fair to say this is additional investment”.

“When we’re presented with opportunities to improve projects and improve community outcomes … We take those opportunities,” Ms Allan said.

The changes had been called for by nearby residents, councils and the state opposition, with Liberal transport infrastructure spokeswoman Louise Staley saying the government must now regularly update Victorians on costs as the project progressed.

Under a series of changes, tunnels on Melbourne's North East Link will be 1.9km longer than planned.

An aerial view of the M80 and Greensborough interchange.

Inside one of the North East Link tunnels.

“Every time they touch these projects they’re either over budget, over time or both,” she said.

Motorists travelling towards the M80 who use the new tunnel will now emerge at the northern tunnel portal along Greensborough Rd near to Watsonia rail station, rather than at Lower Plenty Rd as initial designs indicated.

The new plan will result in less public space being dug up and is expected to allow for more parkland and green areas.

The updated changes will also develop Greensborough Rd into a boulevard lined with trees and new parklands and create a “green bridge” known as Yarra Link between the Koonung Creek Trail and Bulleen Park.

Greensborough Rd will be developed into a boulevard lined with trees and new parklands.

An artist’s impression of the Yarra Link green bridge.

An aerial impression of the completed works in Greensborough and Lower Plenty.

The project’s estimated cost was set to be $15.8bn, made up of multiple contracts.

Two packages of works to create massive interchanges at the Eastern Freeway and at the M80 will go to market next year ahead of major construction beginning.

Early industry briefings in 2018 had indicated costs of up to $4.1bn, while a separate tolling services contract was uncosted.

Treasury papers show $849m has already been spent.

An artists’s impression of the Eastern Freeway at Lyndhurst.

A North East Link tunnel boring machine working under Bulleen Rd.

Ms Allan said the full cost of the project was unclear until those extra contracts were inked.

The tunnelling works are expected to create 8000 jobs, and no additional homes are expected to be acquired under the design changes.

However, no homes already in the process of acquisition will be saved.

When asked if the state would seek further funding from the Commonwealth, which has already put up $1.75 billion, Premier Daniel Andrews said there would be discussions given “this project is of such significance that it’s actually a benefit not just to the Victorian economy but the Australian economy”.