28 minute read
Dominic Perrottet | New South Wales Treasurer
ptam veriori quiaspele
Key points:
• Infrastructure is about making both the economy and society thrive. • New South Wales is leading the country because of the funding capacity from asset recycling. • The ongoing spectre of political interventions in markets and projects is a growing concern.
I believe that there has never been a better time to be in the infrastructure game in New South Wales.
Sydney now accounts for more than half of the cranes in Australian skies – a number that once again increased last quarter.
Our recent budget invested another $73 billion in infrastructure to keep this revolution rolling on.
Boral CEO Mike Kane said recently he expects the infrastructure boom to last for 10 years – and for it to be even better for business than the housing construction surge we have seen. But our motivation is not about building and construction.
Whilst it is exciting to see an enormous amount of activity, we are not embarking on this ambitious programme simply because we love pouring concrete and raising steel.
As a Treasurer, and as a Government, we never lose sight of the fact that we are on a mission to make our state the best place to live, work, raise a family and run a business.
We are passionate about building infrastructure because it contributes to improving the quality of people’s lives.
A new metro means a quicker trip home to join the family
for dinner. New classrooms help our children to reach their full potential. New social housing gives struggling families the security of a home. New motorways clear traffic from local roads and help small businesses to get products to market faster.
While we are all from different backgrounds, this is the real business we are in together – building a better New South Wales for our citizens and the communities in which they live.
As Treasurer, I always like to remind myself that with each spreadsheet entry and funding allocation, we are writing the future story of our state. Each time we sign a contract, cut a ribbon or lay track, we are adding new chapters to this story. The cranes in the sky, the tunnelling machines underground and the jackhammers on our streets are the tools we are using to write its pages.
I consider the people in this room today to be among this story’s most important authors and characters, so I want to acknowledge and thank you for the contribution you and your organisations are making to building the future New South Wales; but this story is not yet complete. There are challenges that lie ahead.
I want to outline for you what the next chapter might look like, and why I believe our infrastructure agenda is vital to our prosperity.
Along George Street, the CBD and South East Light Rail project is in full swing. It’s just one of the many parts of our city and state under construction as we build the metros, museums and motorways of tomorrow.
Our Government understands the inconvenience this causes our citizens as they try to go about their everyday lives.
When the construction dust settles, New South Wales in 2025 and beyond will be a very different place. Fast forward to the future and imagine for a moment you live in Newcastle. Light rail runs every 7.5 minutes during peak hour, taking you along a revitalised urban business precinct. From there, you can drive south along the newly upgraded Pacific Highway.
Approaching Sydney, you dip into a sleek, modern ninekilometre tunnel – this is NorthConnex, connecting our north to the CBD and the west.
Above you, Pennant Hills Road carries 5,000 fewer trucks a day. It is quieter. It is safer. The air is better and local public transport options are more reliable.
Driving nonstop at 80 kilometres per hour, you get onto the M2 and link up with New South Wales’ second major city: Parramatta.
After visiting the new high-rise school campus, you can catch the light rail to get to the world-class Westmead Health Precinct, the new Western Sydney Stadium, the new Powerhouse Museum or the Riverside Theatre.
From here, you can take the M4 and M7 to the new Western Sydney Airport at Badgerys Creek – one of the two world-class airports in our state.
To get to Sydney Airport, you can drive from Parramatta along the widened M4 and then underground, bypassing a liberated Parramatta Road, cruising on the western edge of the city using the M4–M5 link.
This is WestConnex – an essential addition to our city’s circulatory system, removing congestion and increasing the flow of freight, and supporting the economic heartbeat of Sydney.
From Penrith to the western edge of the CBD, you will be able to travel without stopping at a single traffic light, cutting up to 40 minutes from the average peak-hour journey today.
From the airport, you can drive north to the new world-class Northern Beaches Hospital, using new motorways to get there quickly and reliably while bypassing the CBD.
From the north-west, if you need to go to the CBD or out west towards Bankstown, you can skip the road and go by rail.
Your trip on the new Sydney Metro takes you through major centres like Castle Hill, Macquarie Park and Chatswood, under Sydney Harbour into the CBD, and then south-west through Sydenham and out to Bankstown.
You won’t even have to look at a timetable – trains will come every four minutes during peak hour.
On weekends, you can spend time on our revitalised harbour foreshore – a true jewel in the Pacific. You can stroll through Barangaroo, experience a rejuvenated Circular Quay with family and friends, take in a concert at the new International Convention Centre, or go shopping in the restored The Rocks precinct.
You could then visit the new Sydney Modern Art Gallery, right on the edge of the Royal Botanic Gardens, or stop in for a drink at the new rooftop bar at the State Library of New South Wales and gaze upon world icons, such as the Opera House and Harbour Bridge, lit up at night for the Vivid Sydney festival, which attracts visitors from around the globe.
You’ll then be able to catch the light rail up George Street and out to the eastern suburbs, stopping off at the Randwick
Sydney Metro Tunnel. Source: Transport for NSW
WestConnex. Source: Sydney Motorway Corporation
Health and Education Precinct or to watch a sporting match at a world-class stadium in Sydney’s east.
From there, you can head south from Port Botany to major centres, like Wollongong and beyond, using upgraded motorways, creating a better connection between Sydney and the South Coast.
This is but a glimpse of New South Wales beyond 2025 – a modern, global and connected state. A state with three separate, yet equally important cities: an eastern city, Sydney; a central city, Parramatta; and a western city, around the Western Sydney Airport. They will all be connected to each other, and to our regional economic centres. Each area will have world-class transport, schools and hospitals – the foundations required for people to thrive.
This is the future that we are constructing today. This vision of New South Wales beyond 2025 is something we have long aspired to achieve; but for many years, it remained words trapped on a piece of paper.
While services and infrastructure were under increasing pressure as our population grew, state budgets were too tight and stretched to cope. Previous administrations had no way of solving this problem without raising taxes or increasing debt – the result was that many did not act at all.
The previous state government, with the best intentions in the world, released transport plan after transport plan, but it could never deploy the financial firepower needed – this resulted in their projects remaining stuck on the drawing board. Something had to change – a new approach was needed.
In 2011, we decided not to simply tax and spend, borrow more money or kick the can down the road for future generations. We realised that we, as governments have to use our resources and capital more intelligently in order to make the most of what we already have.
Asset recycling is the answer to the dilemma that plagues every government. This means divesting old assets and then reinvesting that money into newer assets that work.
This approach has secured New South Wales $20 billion to help to rebuild the state through the electricity network transactions. Instead of owning a power pole outside your house, you can have a new school or hospital around the corner.
It has allowed us to divest old and expensive social housing stock, freeing up capital to build three times as many houses
across the state, providing hope to the 60,000 people currently on the waiting list.
It has allowed us to build costly, but vital, infrastructure while maintaining our commitment to fiscal responsibility, and protecting our AAA credit rating. New South Wales is on track to be the first state to have a net worth of $250 billion.
Asset recycling is why Infrastructure Partnerships Australia called our last state budget an ‘infrastructure budget’; it puts hard dollars behind actual transport, health and education projects – which is in stark contrast to other states.
Infrastructure is not only the backbone of our future state – it is the backbone of our current fiscal strength.
There would be few jurisdictions around the world that could point to a healthy budget surplus, negative net debt, growing net worth and a record infrastructure spend.
Recent economic data has also been positive. Business investment, public infrastructure and dwelling construction have been strong, helping to lift construction activity, driving employment and productivity growth.
Unemployment is at five per cent – the lowest of any state across Australia. This increase in activity has created an extra 92,000 full-time jobs in New South Wales over the last year.
Housing approvals are at record levels, totalling 70,000 for the past financial year, while capital expenditure in New South Wales is the highest in the nation for the first time in more than a decade.
New South Wales also has the strongest business conditions and confidence of the mainland states, and consumers here are among the most confident in the nation.
The lesson for governments is that investing in infrastructure is a strategic way to boost growth. Central banks have been trying monetary stimulus for some time, but the New South Wales experience proves that economies can be kickstarted with large-scale infrastructure investment.
In fact, we estimate that our infrastructure agenda alone will add around half a percentage point to the state’s Gross State Product (GSP) over the next two years.
Despite all these benefits, New South Wales continues to be penalised for our success. A recent survey conducted by Infrastructure Partnerships Australia shows that the majority of Queenslanders want their government to use asset recycling to fund infrastructure, as opposed to raising taxes or increasing debt.
Whilst in New South Wales we have reformed, our neighbours up north have refused to do so, putting political ideology before the progress of their people.
Whilst we are busy building up our infrastructure, they are busy building up their back-office bureaucrats. And thanks to the current GST distribution system, their failure to reform is being rewarded.
Over the next four years, the taxpayers of New South Wales are underwriting the poor decisions of the lazy Queensland Government by handing over more than $6 billion. This is an unfair system that needs to change.
In terms of infrastructure, the good news is that our plans are just beginning. Being a good government is about managing dual horizons – what is in front of us and what is yet to come.
Our last budget signalled a number of important infrastructure priorities that we are now turning our minds to. Over the next four years, we are undertaking more than $41 billion of major capital works in the transport sector alone.
Development and planning funding has been allocated for the proposed Western Harbour Tunnel, Beaches Link and F6 Extension. Each of these projects will need detailed business cases before any investment decisions are made.
Work continues on the Sydney Metro City and Southwest – a project that will make room for an extra 100,000 train commuters per hour.
In Western Sydney, significant capital is being invested to support the second airport at Badgerys Creek, generating tens of thousands of jobs in the process. But our building agenda is much broader than transport.
Over the next four years, record amounts are being invested to build and upgrade more than 90 schools, creating an additional 1,500 classrooms to accommodate growing demand.
We have also kicked off the biggest programme of hospital building this state has ever seen. There will be new and upgraded hospitals in a number of areas, including Concord, Campbelltown, Nepean, Tweed and Randwick.
Cultural institutions are not being neglected, either, with ambitious plans for new museums and sporting facilities, in both regional and metropolitan New South Wales.
On the asset recycling front, we will continue to proceed with our plans to sell a 51 per cent stake in Sydney Motorway Corporation, to help fund construction of the next phase of WestConnex, the M4–M5 link.
This will mean that it is built sooner, and the people of New South Wales will continue to benefit from the growth in the value of the Government’s ongoing shareholding.
We are also in discussions with the Federal Government around the future of Snowy Hydro.
At a time when energy prices and energy security are top of mind for this Government, it is important that we consider the future of this asset carefully.
It now presents another opportunity to unlock value and fast-track important projects needed to secure our future. While on the topic of energy, I do want to make some observations.
I am a firm believer that renewable energy sources are the energy of the future. The energy network of tomorrow will be distributed and decentralised, relying on clean and green technology, in contrast to the model we have today. Current
CBD and South East light rail. Source: Transport for NSW
projections say that this future could be here as close as the 2030s, but we are not there yet.
This is evident in the recent blackouts that have occurred, and the actions taken by the Federal Government to try to guarantee energy supply through projects such as Snowy Hydro 2.0 and the Liddell Power Station.
Current energy policy settings are having the effect that was intended – to disincentivise traditional sources of power generation by making them economically unviable.
But this heavy-handed approach is having real impacts on families, communities and industry.
In a fi rst-world country, our citizens have the right to affordable, reliable and secure energy.
While the 2030s are not far away, we have to be realistic in the meantime – we cannot stand by and accept 20 years of rolling blackouts and crippling energy bills.
It makes sense to continue investing in traditional sources of energy generation, while at the same time managing the transition to a renewable future.
Right now, our main priority should be ensuring the reliability of our energy supply. I also agree with Professor Gary Banks AO, who said earlier this year at Infrastructure Partnerships Australia’s Annual Infrastructure Oration: ‘The inconvenient truth is that the increasingly high prices for increasingly unreliable electricity are a direct consequence of the increasingly high utilisation of renewable energy required by government regulation’.
Whether it’s pink batts, school halls, the National Broadband Network (NBN) or the energy market, ill-thought-out government interference in private markets for purely ideological purposes almost never ends well, especially for the end consumer.
They say the road to hell is paved with good intentions – I believe it’s also paved with government interventions.
Our infrastructure agenda has been instrumental in securing our current and future prosperity. It is the cornerstone of our solid budgetary position. It is helping us build the city and state we all want to live in, and it has catapulted New South Wales from last to fi rst.
Dominic Perrottet – New South Wales Treasurer and Minister for Industrial Relations
Dominic Perrottet grew up in the Hills District, and was educated at Redfi eld College and Oakhill College, before graduating from Sydney University with a Bachelor’s degree in Commerce/Law.
Before entering Parliament, Mr Perrottet worked as a solicitor at Henry Davis York Lawyers in the areas of banking restructuring and insolvency law.
At university, Mr Perrottet became involved in student politics and served as a member of the Student Representative Council, and was elected president of the Sydney University Liberal Club. He was also elected as the President of the New South Wales Young Liberal Movement, and served on the State Executive of the New South Wales Liberal Party.
In March 2015, Mr Perrottet was elected as the State Member for Hawkesbury (having been elected as the State Member for Castle Hill in 2011), and in April 2015, was appointed as the State Minister for Finance, Services and Property.
In January 2017, Mr Perrottet was elected Deputy Leader of the New South Wales Liberal Party and appointed State Treasurer and Minister for Industrial Relations.
Social infrastructure is front of mind for governments, as population growth drives demand for housing and transport solutions.
The Commonwealth Bank of Australia’s (CommBank’s) focus on collaboration and stakeholder engagement is helping governments and the private sector to drive a new wave of social infrastructure projects.
Social infrastructure is broadly defined as the construction and maintenance of facilities that support social services and require government funding to be viable. Projects include some hospitals, schools and universities, community housing, correctional facilities, railways, and roads.
‘We strongly believe in the potential of social infrastructure in Australia,’ says Chris Jones, Director of Infrastructure at CommBank. ‘Done well, these projects can deliver social outcomes for communities that last decades, while minimising risks for governments and taxpayers.’
As a leading infrastructure financier, CommBank is well placed to address community problems, such as affordable housing, through innovative social infrastructure funding. CommBank was instrumental in jointly establishing the first aggregated funding vehicle for Australian local government authorities in 2014.
The funding vehicle pools individual borrowers, such as local councils, who do not have a credit rating because of their small size and the cost involved. This form of funding allows borrowers to access capital markets and achieve cheaper funding for social infrastructure projects.
‘It’s a model used extensively overseas, but it’s still finding its feet in Australia,’ says Jones. ‘Pooling models have enormous potential to provide an alternative source of funds for social infrastructure generally, as well as social housing projects to help increase the supply of affordable housing for those on lower incomes.’
Chris Jones Director, Infrastructure Commonwealth Bank James Bramley Asset Director, Asia Pacific John Laing
Jones says this solution benefits borrowers and investors, such as superannuation funds.
‘Funding vehicles can further facilitate investment in social and affordable housing projects around Australia,’ says Jones. ‘Social housing is an area CommBank is willing to lead, and our strengths in debt markets and social infrastructure can deliver benefits to governments at all levels, the private sector, and the community. We want to make social housing projects happen.’
‘The diversification of borrowers in the funding vehicle lowers risk, in turn creating a pricing benefit for the debt. Investors get a higher return than
Better Today. Brighter Tomorrow
Sydney Light Rail - driving innovation in social infrastructure.
“John Laing and Commonwealth Bank have a strong, reciprocal relationship on social infrastructure and a shared passion to develop assets with long-term community benefits.”
James Bramley
Asset Director, Asia Pacific John Laing
How John Laing and Commonwealth Bank’s close cooperation finances and delivers social infrastructure projects.
Global infrastructure investor John Laing Group plc is building on its relationship with the Commonwealth Bank (CommBank) to develop the transformative CBD and South East Light Rail project in Sydney and drive innovation in social infrastructure projects. John Laing, an originator, active investor and manager of infrastructure projects, is part of the ALTRAC Light Rail consortium the New South Wales Government in December 2014 chose to design, build and operate the $2.1-billion CBD and South East Light Rail project. ALTRAC is owned by John Laing, First State Super and Acciona Concesiones, and involves Transdev Sydney, Alstom Transport Australia, Acciona Infrastructure Australia and Capella Capital. As lead arranger to the financing syndicate, CommBank led the debt funding for the project, bringing three international banks into the four-member syndicate. “We are helping deliver a world-class solution for reliable, high-capacity light rail services for Sydney commuters,” says James Bramley, Asset Director, Asia Pacific, at John Laing. “Sydney Light Rail will reinforce the benefits that outstanding social infrastructure brings to cities.” The 12-kilometre route, under construction since 2015, extends from Circular Quay along George Street to Central Station, then through Surry Hills, Moore Park, Kensington and Randwick. The “turn-up-and-go” Sydney Light Rail service will operate up to every four minutes in peak times between the CBD and Moore Park and every eight minutes along the Randwick and Kingsford branch lines. Featuring 19 stops, it will reduce traffic congestion, improve traffic to and from the CBD and will create a one-kilometre pedestrianised zone along George Street in the heart of the CBD.
Bramley says CommBank’s experience in social infrastructure benefits the CBD and South East Light Rail project and is a reason John Laing is working with the bank on several current and potentially upcoming infrastructure projects. “There is good alignment between John Laing and CommBank in the way we approach infrastructure projects,” says Bramley. “John Laing is an active investor that is not afraid to get involved to improve project performance. CommBank has a similar mindset that manifests in extensive due diligence and monitoring of projects.” CommBank’s global reach is another strength, says Bramley. “John Laing works on infrastructure projects in the United States, Europe and Asia Pacific. Having an Australian bank that can bring in global financiers, and work with John Laing as it expands in the Asia Pacific, is an advantage. CommBank’s knowledge of infrastructure in Asia Pacific is a real asset.” The CBD and Sydney Light Rail is the second rail project involving John Laing and CommBank. In addition, CommBank provided finance for three other recent projects. John Laing is part of a consortium the Queensland Government selected in November 2013 for the New Generation Rollingstock project. That involves providing and maintaining 75 new six-car trains for 30 years for the South-East Queensland suburban passenger rail network. The new Royal Adelaide Hospital, the largest social-infrastructure project in South Australia’s history, includes John Laing as part of the Celsus (formerly SA Health Partnership) consortium. In regional NSW, John Laing is part of the Northern Pathways consortium designing, constructing, operating and maintaining the new Grafton Correction Centre.
Bramley expects John Laing will continue to work with CommBank and develop bids for upcoming social-infrastructure projects. “Our organisations have a strong, reciprocal relationship on social infrastructure and a shared passion to develop assets with longterm community benefits.” To learn more visit:
commbank.com.au/infrastructure
laing.com
Fast Facts about Sydney CBD and South East Light Rail project.
1. $2.1 billion Light Rail project in Sydney’s CBD and South East. 2. 12-kilometre route extends from Circular Quay through to Surry
Hills, Moore Park, Kensington and Randwick. 3. Service to operate every four minutes in peak times between CBD and Moore Park.
Continued from page 9
Sydney Light Rail. Photo supplied by TfNSW
regular capital market investments, and the long duration of affordable housing projects suits the investment horizon of superannuation funds.’
Jones says momentum is building in social housing investment. New South Wales Premier Gladys Berejiklian in June announced a series of housing affordability reforms to increase housing supply. The Victorian Government in February 2017 announced it would invest $1 billion in a social housing growth fund over four years, to increase the state’s social housing stock.
Strong foundations in infrastructure
CommBank has a proud infrastructure history. It has been involved in almost every major Australian nation-building project, and is known for developing innovative funding solutions for economic and social infrastructure assets across sectors.
Jones says CommBank’s government sector expertise encouraged him to join the bank in 2016 to lead its social infrastructure client strategy. ‘Providing solutions to the government sector is in our DNA. From debt markets to the bank’s pioneering work in social impact bonds and infrastructure, we have vast experience in government and not-for-profit sectors, as well as [the] private sector, and we draw on that knowledge for social infrastructure projects.’
An ability to engage governments, says Jones, is vital. ‘We look carefully at what a government wants from a social infrastructure project to ensure appropriate risk allocation, project parameters and consortium selection. Everything is about delivering a project that meets the government’s goals, helps the community and minimises risk wherever possible.’
Jones says CommBank’s extensive due diligence process is a strength. ‘We spend months checking that the project can be built for the contracted price, delivered on time and operated appropriately, and ensure that projects align with the procuring authority’s specifications, the Equator Principles and sustainablility policies.’
CommBank’s ability to drive collaboration is a point of difference, says James Bramley, Asset Director, Asia Pacific, at John Laing. ‘CommBank is very good to work with on social infrastructure projects. Like John Laing, the bank is active in projects and strives to get the best outcome consistently for stakeholders.’ CommBank and John Laing have worked together on several developments, notably the CBD and South East Light Rail project.
Social infrastructure’s bold future
Jones is buoyed by the work of state
governments, most recently that of New South Wales and Victoria, in social infrastructure. ‘It’s clearly front of mind for governments, as population growth drives demand for new social infrastructure, or renewal of existing assets.’
Jones says the New South Wales and Victorian governments are leading a highly integrated approach to social infrastructure. ‘The days of building a rail line to a new residential development, without appropriate social infrastructure, are long gone; governments know they need integrated social infrastructure across transport, health, education and other sectors, to create sustainable benefits for the community.’
Governments, he says, are also more adept at working with the private sector on social infrastructure through public-private partnerships (PPPs). ‘Governments are much better at ensuring that consortiums will deliver what they say they will, and acknowledge the benefits financiers like CommBank bring to the table, including extensive due diligence and project monitoring.’
Jones says governments, the private sector and the community will always need to deliver long-term vision in social infrastructure. ‘The Sydney Harbour Bridge, remarkably, is still doing today what it was designed to do in 1932. The government had the foresight to create an asset that would benefit the community for decades. That type of multi-generational thinking – and passion to do the right thing by the community – can drive a new era of social infrastructure projects.’ ♦
To learn more visit: commbank.com.au/infrastructure
Queensland’s approach to infrastructure planning scores strong industry support
The updated plan provides industry, local government and the community with confidence and certainty in the state’s commitment to current and future projects.
Department of Infrastructure, Local Government and Planning
State Infrastructure Plan
Part B: Program – ���� update
The SIP 2017 update showing the Warrego Highway – Jingi Jingi Creek culverts under construction. Photo credit: TMR The Queensland Government has initiated and delivered a range of economic and jobs-boosting infrastructure throughout the state since the release of the State Infrastructure Plan (SIP) in 2016.
The SIP is guiding investment in the state over four years through the Queensland Government’s $42.7 billion of budgeted infrastructure funding, and beyond that, through the pipeline of projects in planning and future opportunities.
The July 2017 update to Part B of the SIP includes a visualisation of Queensland’s infrastructure pipeline, a new regional planning section, the progress in implementing the plan’s priorities, and an overview of the Cross River Rail project.
‘Industry response to the update has been very encouraging,’ says Queensland Deputy Premier, Minister for Transport and Minister for Infrastructure and Planning Jackie Trad. ‘Feedback from a range of stakeholders demonstrates strong support for the improved coordination across government around infrastructure planning.’
The SIP update shows that in the last year the State Infrastructure Fund has committed $1.6 billion. It reveals that more than 400 construction projects were approved, completed
The Kenya to Chinchilla Pipeline construction is a SIP water project. Photo credit: SunWater
or are underway, including three new hospitals and four new schools, 129 kilometres of state-controlled road, and 1200 megawatts of renewable energy projects.
Other highlights included the facilitation of a $13-billion tourism infrastructure pipeline, $320 million in infrastructure for the Gold Coast Commonwealth Games, and 700 local government projects in regional areas through the Works for Queensland (W4Q) program.
Another $10.2 billion in infrastructure investment is expected in 2017–18, with $4.8 billion earmarked for regional Queensland. In South East Queensland, the flagship $5.4 billion Cross River Rail project will transform transportation networks and regional mobility.
‘The updated SIP is designed to maximise certainty about Queensland’s infrastructure priorities,’ says Trad. ‘In response to industry feedback, we’re providing more information to help the private and local government sectors with their infrastructure planning.’
The Department of Infrastructure, Local Government and Planning has worked closely with local governments, the Local Government Association of Queensland, and the infrastructure industry, including the Infrastructure Association of Queensland (IAQ), Engineers Australia and the Queensland Major Contractors Association, and this work has informed the SIP update.
The Queensland Government’s approach to infrastructure planning received a high approval rating from respondents in an IAQ survey.
State’s innovative infrastructure strategy
Released in March 2016 after extensive industry consultation, the SIP is a bold infrastructure reform agenda for Queensland. It outlines the Queensland Government’s strategic direction for the planning, investment and delivery of the state’s infrastructure.
A feature of the SIP is the ability to scope for market-led proposals from the private sector that seek an exclusive commercial arrangement with the Queensland Government to provide a service or infrastructure that will meet a community need.
‘Market-led proposals were introduced in 2015 as part of the Palaszczuk Government’s plan to create jobs and stimulate the economy by encouraging the market to come to government with infrastructure ideas and opportunities,’ says Trad.
The SIP has two sections: Part A: Strategy, which sets the vision to guide infrastructure investment in Queensland and is updated every five years; and
Part B: Program, which provides a four-year program of infrastructure investment to be updated and reviewed annually in line with the state budget.
Plan highlights
The updated SIP visualises how projects mature from concepts to funded government projects, through the Queensland infrastructure pipeline. The pipeline provides a coordinated and integrated approach to planning, prioritising, funding and delivering infrastructure in Queensland. ‘Industry asked for greater clarity on infrastructure projects over the horizon,’ says Trad. ‘The SIP reflects our commitment to a strong pipeline of infrastructure investment, giving industry the certainty and confidence to invest in our state.’
The SIP also includes extra information on regional infrastructure planning and projects. Through the ShapingSEQ – South East Queensland Regional Plan, and the forthcoming North Queensland Regional Plan, the Queensland Government is delivering a more integrated approach to infrastructure planning.
The consultation process identified strong interest in the government’s approach to region-shaping infrastructure. The updated SIP includes information on key regional infrastructure commitments and where they are in the pipeline. Future SIP updates will also be informed by regional plans as they progress.
Better linkages between the Queensland and national infrastructure pipeline is another SIP feature. The SIP pipeline includes 16 Queenslandspecific proposals and other national infrastructure initiatives relevant to the state, from Infrastructure Australia’s February 2017 Infrastructure Priority List (IPL).
Industry has asked for more information on Queensland projects in the context of national infrastructure planning. The latest SIP includes the IPL projects in the pipelines of projects in the planning phase, or those that have been funded in the 1–4 year program.
Detailed information on implementation is also provided. The SIP outlines 19 implementation actions and their status. Implementation actions are reviewed annually to ensure the continued improvement of planning and delivery of critical infrastructure.
Emphasis on project delivery
The 2017 SIP update confirms theQueensland Government’s current infrastructure program across 10 asset classes. Each asset class lists projects, estimated costs, funding sources and expected funding allocations across four years, and includes a visualisation of key infrastructure projects and their status.
‘The SIP is guiding investment across Queensland with a focus on infrastructure delivery,’ says Trad. ‘With a clear focus on project delivery, we ensure that we deliver the infrastructure we need, when we need it.’
The Deputy Premier says the SIP will continue to add more value for industry, local government and the community. ‘Through the SIP, we are catering for the future needs of our community with clarity and purpose. We are committed to working with industry, listening to their needs and responding. The updated SIP is another step in helping business and government work together on critical infrastructure that helps communities across Queensland.’ ♦
Jackie Trad, Queensland Deputy Premier, Minister for Transport, Minister for Infrastructure and Planning
