Project Risk, Finance and Monitoring

Running Head: PROJECT RISK, FINANCE AND MONITORING
MBA643: Project Risk, Finance and Monitoring
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1PROJECT RISK, FINANCE AND MONITORING
Table of Contents
Part A: Project Overview.................................................................................................................2
A1. Overall Budget for the Project..............................................................................................2
A2. Social and Economic Rationale............................................................................................2
A3. Key Statistics........................................................................................................................2
A3.1 Scope and Size................................................................................................................2
A3.2 Budget and Estimated Cost.............................................................................................3
A3.3 Time Required to Complete the Project.........................................................................3
A3.4 Key Construction Elements............................................................................................3
A3.5 Environmental Costs or Benefits....................................................................................5
A4. Funding Mechanisms............................................................................................................5
A5. Key Stakeholders..................................................................................................................5
Part B: Risk Analysis.......................................................................................................................6
Part C: Risk Mitigation Plan..........................................................................................................11
References......................................................................................................................................15

2PROJECT RISK, FINANCE AND MONITORING
Part A: Project Overview
A1. Overall Budget for the Project
The overall budget for the project is not completely finalized but it has been estimated
that the project will cost between $5 and $10 billion.
A2. Social and Economic Rationale
This project is set to benefit the urban growth of the city of Melbourne. It has always
been considered that the North end and the East end are not sufficiently connected together with
a high speed network and as a result, there are extreme traffic blockages during the rush hours.
For years, the Australian daily passengers residing in Melbourne have been demanding a new
network that would connect the northern and eastern parts of the main city as well as its outskirts
(Li 2016). The new proposed high speed road network will definitely solve this issue and will
significantly reduce the traffic on the normal roads. Moreover, the current roads are extremely
old and often require high amount of maintenance costs due to frequent damages caused by over-
pressure of regular traffic. The new high speed network will not only reduce the pressure on
these roads but also generate a source of income through toll booths.
A3. Key Statistics
A3.1 Scope and Size
The scope of the project is to construct the North-East Link for the city of Melbourne.
The North-East Link will also consist of the following components.
i. Northern Section (M80 to Lower Plenty Road)

3PROJECT RISK, FINANCE AND MONITORING
ii. Southern Section (Tunnel to Bulleen Road)
iii. Eastern Freeway (Upgrades and Further Development)
The project is of a very large scale spanning a time period of around 7-8 years. As per the
initial dates estimated, the construction work will start in 2020 and will be completed and open
for traffic by 2027-28.
A3.2 Budget and Estimated Cost
While the final budget has not been fixed yet, the project is expected to cost at $10bn.
However, with additional costs and risk management procedures, the total estimated cost of the
project is expected to rise to $15bn.
A3.3 Time Required to Complete the Project
The estimated time required for the project is 7 years starting from 2020. It is expected
that the link will be opened for traffic by 2027 or early 2028.
A3.4 Key Construction Elements
As per the plan, there are three main segments in the entire link – the northern section,
the southern section and the eastern freeway. The key construction elements in each section are
specified as follows.
Northern Section – The main construction elements of this section are as follows.
M80 Interchange: In this part, the North East Link will start with an interchange that will
connect M80 Ring Road and Greensborough Bypass with the Link. New cycling and walking
paths and bridges will also be built along the path.