North East Link Project: Stakeholder Analysis and Conflict Management

This report provides a comprehensive overview of the North East Link (NEL) project, a major infrastructure initiative in Melbourne, Australia, aimed at completing the orbital freeway. The report details the project's scope, including twin tunnels, a dedicated busway, and extensive walking and cycling infrastructure. It identifies key stakeholders such as the Victorian State Government, local residents and businesses, and private sector parties like Spark Consortium, analyzing their roles, interests, and potential conflicts. The report highlights tensions arising from community concerns about tunnel extensions, property acquisitions, and environmental impacts. It suggests conflict management strategies, including tunnel expansions to mitigate negative impacts and the use of tunnel boring machines to reduce surface disruptions. Despite challenges, the project is expected to provide significant benefits, including reduced travel times, job creation, and improved transport infrastructure. The analysis emphasizes the importance of stakeholder engagement and conflict resolution in the successful delivery of large-scale infrastructure projects.

Overview
The North East Link (NEL) is a proposed project that aims to complete the
missing link in Melbourne’s orbital freeway by connecting the M80 ring road to
the Eastern Freeway/Eastlink. It aims to reduce travel times, remove non-local
traffic, increase reliability and improve traffic flow. The $11.1 billion primary
package has been secured and is expected to be delivered as an ‘availability-
based’ Public Private Partnership. The primary package scope includes twin,
three lane tunnels, Melbourne’s first dedicated busway, and extensive walking
and cycling infrastructure to form a new North East Trail network. The contract
for the primary package was awarded to Spark Consortium with the project’s
construction commencing in 2021 and expected to be completed by 2028. The
Spark Consortium comprises WeBuild, GS Engineering and Construction, CPB
Contractors, China Construction Oceania, Ventia, Capella Capital, John Laing
Investments, DIF and Pacific Partnerships.
Stakeholders
Victorian State Government
The Victorian government is a key stakeholder by being a signatory to the
Project Deed and controlling major decision making relating to the
construction, operation and funding of the NEL project. The Victorian
government has significant responsibility over the outcome of the project by
influencing its construction stages thus being liable for their decisions. The key
state parties also includes NELP which is related to the department of
transport and is responsible for the procurement and delivery of the NEL
project. The State Tolling Corporation, the Department of Transport and
Transport for Victoria are also key state stakeholders.
Local Residents and Business Owners
The construction of the North East Link project will involve local residents
enduring the consequences of construction for many years such as being
subjected to the local construction noise, the sound of countless trucks passing
homes daily and areas being inaccessible as they have been closed off due to
the construction project. Local residents will also have to accept the benefits
and disadvantages of the outcome of this project. Similarly, local business
owners will also be affected by the NEL construction project. To assist this
stakeholder group, the Victorian government has provided a toll-free 1800

telephone hotline to allow local residents and businesses to make enquiries
allowing them to receive immediate contact with the project team. This is a
significant stakeholder group that influences the decision making of other key
stakeholders as the NEL project has an immediate effect on local residential
and business areas.
Private Sector Parties
Spark North East Link Pty Ltd is the primary contracting entity for this project. Project Co has
Webuild, GS Engineering & Construction Australia Pty Ltd, CPB Contractors Pty Ltd and
China Construction Oceania Pty Limited (CCO), under a D&C Contract to carry out the design
and construction of the Primary Package. Ventia Australia Pty Ltd has been engaged under a
Services Contract to carry out operations and maintenance requirements on the Primary
Package. The equity investors engaged to deliver the primary package include Webuild, John
Laing Investments Limited, GS Engineering & Construction Corp, DIF Infrastructure VI
Cooperatief U.A, Lendlease Infrastructure Investments Pty Limited and Pacific Partnerships
Pty Limited. These stakeholders are crucial in providing the equity as well as the design and
construction services required to deliver this project.
Tensions Between Stakeholders
There are differing views as to how exactly the NEL project should be executed. There have
been requests by some community members that the project’s 5km proposed tunnel
section should be expanded north to reduce the impact on the community. Watsonia Road
traders feared that the street could lose 10 to 20 businesses and were disappointed when
this proposition was rejected by the Victorian government. Extending the tunnel would
extend the construction time frame by 2 years and increase the equity required to fund the
project with each kilometre of tunnelling costing $1 billion. The project is also expected to
acquire 102 business properties at Bulleen Park, affecting 770 jobs. Other community
members have also expressed their concern such as the Yarra Junior Football League who
will have to move to Ivanhoe from Bulleen Park thus affecting a league that caters for
11,000 players across 33 clubs. Environmental groups have also expressed concern as the
proposed NEL project is expected to result in the destruction of over 26,000 trees, 2
waterways and 4.5 hectares of parkland. There were further tensions between John Holland
Company and the state government as the construction company pushed back against a
state demand to be financially liable for any unplanned costs resulting in the company
threatening to pull out their bid in the project. This was addressed by the state government
stating that they would develop the project if private contractors such as John Holland
would not carry financial risk and rather impose it on to taxpayers.
Ways to Manage Potential Conflict
The government should endeavour to extend the proposed tunnel by 2km to avoid the loss
of community businesses and jobs whilst reducing disruption during construction and
allowing for the development of parklands and wetlands. Despite this extension costing an
extra $2 billion, it would negate the significant loss of jobs and businesses in the community

if it were not to be extended. The project should also aim to introduce tunnel boring
machines and the removal of surface works elsewhere from Borlase Reserve. This will
prevent 36 residential homes from being destroyed as a result of the project, reducing the
significant upheaval for the affected individuals and the broader community. If the
government would prefer to have private contractors such as John Holland complete the
project, they will have to account for tax payers being liable for unplanned costs rather than
private contractors otherwise private companies would be reluctant to undertaking and
being exposed to such risk considering the size of the project.
For the communities involved, the project is a welcomed proposition as it offers residents
reduced travel times from Melbourne’s north and south-east, whilst reducing the number of
trucks on local roads, and providing 25km of new and upgraded walking and cycling paths.
The project is also expected to create 10,000 Victorian jobs during its project span.
However, as discussed above there are some stakeholders who will be adversely impacted
by the project. Despite this, the varying benefits to the general public for the long-term
enables for the project to be significantly accepted by the community.