In July 2005, the state committed almost $1 billion to develop myki to replace the ageing Metcard system. The myki system was expected to deliver significant benefits to Victorians including more efficient, attractive and reliable transport services, and the best value solution at the lowest whole-of-life cost. Public Transport Victoria (PTV) is currently planning to retender the myki contract which expires in 2016.
This audit examined myki's operational effectiveness, and whether the outcomes and benefits expected from its introduction are being achieved. The audit found that that myki experienced significant delays and related cost increases that have compromised achievement of its original business case objectives and benefits.
Poor initial planning resulted in myki's original scope and contract being vaguely specified and overly ambitious. This produced significant delivery risks that were poorly managed because of shortcomings in the state's initial governance and oversight of the project.
Since its creation in 2012, PTV has improved oversight and management of the myki contractor. However, significant risks to the state remain due to weaknesses with the contract’s performance regime and the compressed time frames for the myki retender.
PTV needs to urgently address these issues to avoid perpetuating past mistakes.