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This audit examined how effectively VicRoads and the Linking
Melbourne Authority (LMA) managed a sample of major road
projects:
- six of VicRoads
major road projects, with capital costs that varied between $41
million for the Goulburn Valley Highway duplication, to $1.2
billion for the Western Ring Road upgrade
- the Peninsula Link
project, included in the Victorian Transport Plan with an expected
cost of $750 million and subsequently developed and procured by LMA
as a public private partnership.
VicRoads and LMA have not been fully
effective in developing the major road projects examined. Both
agencies fell short of the standards required to reliably forecast
traffic and estimate projects’ economic benefits when informing the
decision to proceed. LMA also had weaknesses in the way it had
informed procurement decisions.
Addressing these weaknesses is critical
because decisions have been made without a complete understanding
of the consequences.
Based on the projects reviewed, neither
organisation has effectively measured all of the intended project
outcomes, but both are working to do this for current and future
projects.
Once decisions had been reached on projects and their
procurement, VicRoads and LMA effectively monitored and managed
their delivery. This was evident from their performance in
delivering projects close to their planned time lines and
costs.
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