The Victoria government in Australia has rejected plans for a PPP deal.
The plan has been supported by the previous administration. Plans to upgrade the Dandenong railway line in the south-east of Melbourne had been put forward on a PPP basis by the Rail Transformation Consortium consisting of MTR, John Holland and UGL Rail.
The Labor government has now outlined plans which include removing nine level crossings, building a new fleet of trains and reconstructing four stations along the route.
According to the government expressions of interest for both the level crossing eliminations and the distribution of new trains will be released “within months.”
“Instead of proceeding with the former Liberal government’s Cranbourne-Pakenham con, the Labor government will purchase intellectual property from the consortium, and use it and the funding to fast-track a bigger, better plan with more trains and more level crossing removals,” it added.
Under the previous plans, the association would have run the line for 20 years from 2019, but it now appears the state government will operate the line once it is accomplished.
The news follows the Labor administration’s pronouncement to cancel the East-West Link PPP project which reached financial close in October last year.