Procurement Approach for North East Link and WestConnex

Answer 1
While operating in the general Auditor General team, it would be the duty of every member to
adequately adjudge the safety of the operation of the Sydney Light rail. The light rail would be
commuting with on rail, both on the road and underneath the ground. There are various risks that
are associated with the operations of the Sydney rail even after it has been opined as one of the
safest modes of transport. The nature of the risks have been separated to catastrophic risks,
monetary risks and infrastructural risks. Inclusion of a proper risk management plan helps in
evaluating the nature of the risks and thus can help in mitigating the same. It has been found out
that the Sydney light rail helps approximately 13,500 passengers on an hourly basis. The
capacity of each vehicle is approximately 450. It is evident that numerous people are found to be
commuting on the streets beside the rail of the Sydney light vehicles. The risk that have been
identified are as follows;
1. Risks of fatality: Numerous people use the roads, it is a common medium of
commutation. Furthermore, the number of four wheelers and bikes fill the roads. The
light rail vehicles add up to the clutter that the busy roads are already subject to. Thus,
coming in contact with the vehicle might lead to fatal consequences in form of fatalities.
The highest degree of risk associated to the operations of the rail can be experienced in
cross walks road intersection. The vehicles can gain considerable speeds up to 70 km/h
and thus have high chances of colliding with people and the other vehicles.
2. Procurement challenges: The complete construction of the rail tracks across the country
was supposed to be completed before the state elections of 2019. However, there are
delays that are being faced in the same and the final completion of the project is now
scheduled after the 2019. There have been disputes between Ausgrid and Acciona over

the commutation of utilities. Furthermore, the proposed budget for the whole budget
crossed the proposed A$ 1.6 billion mark.
3. Contractual risk: The latter resulted in loss of contracts with various suppliers of the
construction material required for procurement of the final project. This resulted in loss
of the contract and lead to further chances of delay.
The above issues can be solved by setting perimeters encompassing the rail tracts and effectively
marketing the value proposition that would help in attracting potential investors and will help
develop suppliers.
Answer 2
There are various grounds on which governance can fail. Some of the most effective ways to
measure the rates of failure of the governance is on the grounds as assessment of the impact,
systematic failure, market failure, failure regarding capitalism and structural failure. One the
most recognisable aspect of failure of governance of the transports for NSW Sydney Metro West
team is in terms of the costs that are deemed to be on the verge of rise. It has been estimated that
the costs associated with the operations of the NSW Sydney Metro West are likely to touch the
A$ 20 billion mark. The latter can be considered as an expense that can be considered way above
the cost that was estimated at the time of procurement of the project. Thus, it can give rise to
various other forms of failure of governance, such as unfavourable rates of pay of the employees
and privatisation of the shares of the company. Furthermore, layoff of the employees has been
detected as yet another type of failure of the expenses of the operations of the NSW Sydney
Metro West team. Members of NSW Sydney Metro West are subject to risks of termination as
the members are faced by risks associated with sustainability in the company. Along with the
aforementioned points of failure of the governance, the implications can lead to failure of

satiating the needs of the stakeholders as a whole. As the company is subject to increased amount
of cost along with the fact that the procurement of the project will take longer than expected, it is
likely that the returns are deemed to be unfavourable as far as the stakeholders are concerned.
Thus, this can lead to potential problems of attracting the stakeholders including the investors
and employees. Furthermore, it can be said that the implication can lead to unfavourable
expenditures from the part of the company. The increased amount of expenses will lead to
insufficiency of capital which will lead to the inability to pay off the employees. There might be
situation which would result in loss of jobs as a result of the inability to provide adequate
remuneration and privatisation. The delay in completion of the project can go down further. In
the aim to mitigate the issues the company should try to highlight their efforts in the ministry of
finance of Australia which could possibly help in attaining backup capital that the company can
use to speed up the processes and mitigate the possible governance issue that have been
highlighted.
Answer 3
The nature of private investment is such that it can boost the efficacy of the programs that would
otherwise be stagnated if they were reliant on private investments and funds. The New South
Wales monetary fund can generate various forms of investment form private investors by
highlighting the efficacy of the programs and the benefits that the state will be subject to once
the project has been completed. Completion of the Sydney Metro Western Airport will lead to
better commutation in the city. The benefits such as the betterment of the employees will help
the treasury in realising the importance of the ultimate goal of the company. Projects as are likely
to get the nod from the ministry of NSW. Gaining association with the projects are likely to turn
out to be profitable for the private investors. The valuation of the share of the company are likely