North East Link Project Overview, Budget, Benefits, Drawbacks, Key Statistics, and Risk Analysis

Table of Contents
Project overview........................................................................................................................2
Overall budget...................................................................................................................................2
Benefits.............................................................................................................................................2
Drawbacks........................................................................................................................................2
Key statistics.....................................................................................................................................3
Scope and size................................................................................................................................................3
Estimated cost.................................................................................................................................................3
Key construction phases.................................................................................................................................4
Environmental costs/benefits..........................................................................................................................4
Funding mechanisms.........................................................................................................................4
Key stakeholders...............................................................................................................................5
Risk analysis..............................................................................................................................5
Quantitative Analysis.....................................................................................................................................6
Potential risks....................................................................................................................................6
Risk matrix.....................................................................................................................................................6
Risk mitigation plan.................................................................................................................12
References................................................................................................................................18
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Project overview
North East Link is responsible for fixing the missing link the freeway network of Melbourne
that connects M80 to an upgraded Freeway. The freeway is expected to be a safer and more
effective freeway connectivity for up to 100,000 vehicles each day, connecting major hubs in
south-east and north frontier.
Overall budget
The capital cost of the project is $15.8 billion.
Benefits
North East Link is known as the largest road transport project in the history of Victoria which
eventually solved the missing link within the freeway network of Melbourne. About 110,000
and 130,000 vehicles use the North East Link every day which ultimately reduces congestion
within the north-east frontier while managing the local roads for in-city trips.
 Reduction in travel times and traffic congestion.
 Improvement in the public transport.
 Creation of cycling and walking connections
 Helping flourish the local industry as well as economy because of enhanced and
smoother transportation.
There will be an increase of $12 billion in the Gross State Product of Victoria. The proposed
project will provide $1.30 return ratio for every invested. Along with this, $41 million will be
enhanced in economic value each year from efficient safety. It will also generate 3400 jobs
Drawbacks
 Certain residential properties may need to be cleared for construction purposes which
is mainly restricted towards the Lower Plenty Road. The difficult part of this is that
the residents would be adamant in moving away from their properties and that it
would take a lot of energy, efforts and financial perks to make them to move to
another location. This is not to mention the time taken to search a new property for
them.
 During the actual construction work, the overall noise generated from both traffic
congestion as well as construction related activities may increase. As a result, noise
modelling shall need to be done and noise mitigation strategies needs to be
undertaken. This will include installation of Noise barriers to control and maintain
acceptable noise levels in the area.
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 While the reference design is being developed, some permanent or temporary
business operations shall be halted in the area. The parties involved would be
compensated for the same based on appropriate market prices. If any lands need to be
acquired then it shall be done according to the LACA or Land Acquisition and
Compensation Act of 1986. Also, on-going assistance shall be provided to businesses
and residents affected by such acquisitions.
 (Northeastlink.vic.gov.au., 2019).
Key statistics
Scope and size
 Eastern Freeway and Greensborough road.
 M80 Ring Road will be upgraded between the Greensborough and Plenty Road
 The northern part of the roadway would be running at surface before finally
descending into southern part of the Watsonia Station.
 The roadway would continue towards the longest part of Victoria’s tunnel. This
is the 3 lane twin tunnel which runs for 5 km underneath the Bullen Road as
well as other residential and sensitive areas including Bolin Bolin Billabong, the
Banyule Flats as well as the Yarra river which is just north part of the Koonung
Creek.
 The roadway then transitions into an entirely new structure which is just north
towards koonung creek connecting the freeway.
 The road would be interchangeable at Grimshaw Street, Manningham Road,
Bulleen Road and M80 Ring Road.
Estimated cost
In order to estimate cost of the project, a reference project was developed by NELA.
The concept design which was developed for the proposed project formed the basis
for calculating the capital expenditure project costings. The O&M requirements
facilitate in estimating these costs. The cost breakdown is as follows:
Figure 1: Cost breakdown
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Key construction phases
Figure 2: Construction phases
 2019: The first phase would involve planning for approvals from the NELP or
the North East Link Project. The approvals for NELP would have to be
informed by the EES or Environment Effects Statement. EES is Victoria’s
most transparent and most stringent impact assessment process. The EES
project would need to be completed and will be shown on display for at least
30 working days first quarter of 2019.
 2020: The North East Link construction should be started in this timeframe.
Already the best builders in Australia and much of the rest of the world to
show their interest in 200 Million Billion Dollars of initial work and over 7 to
9 Billion dollars of Primary works.
 2027 : North East Link should be open to the public by 2027.
Environmental costs/benefits
The construction cost will be high because of following two main reasons: Firstly, the
proposed North-East link will run through the densely populated and well-established
urban areas which have no surface road reservation. Hence, the main roadway has to
go through the tunnel in order to have least impact on the environment.
Funding mechanisms
The proposed project will charge a toll from the commuters. The toll value will be based on
the detailed modelling and also on the reference tolling solution which will align with the
tolling principles. It will also be based on the tolls on similar rates on other similar toll roads.
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