chapter 3: public sector infrastructure and asset investment · chapter 3: public sector...
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33
CHAPTER 3: PUBLIC SECTOR INFRASTRUCTURE AND ASSET INVESTMENT
Key fi ndings of the Committee:
3.1 Across the general government sector, net infrastructure investment totalled $4.1 billion in 2008-09, an increase from $3.9 billion in the previous year.
3.2 Overall, actual expenditure was 7 per cent less than the revised estimate for 2008-09, but there were signifi cant variations for individual departments.
3.3 Of the 194 major infrastructure projects reported to the Committee, the actual expenditure was within 10 per cent of the estimated expenditure in 27 per cent of cases. $652 million less than budgeted was spent, with 53 per cent of major infrastructure projects under-spending by a signifi cant amount, primarily due to project delays and rescheduling. $207 million more than budgeted was spent on other projects, with 20 per cent of major infrastructure projects over-spending by a signifi cant amount, mostly due to projects progressing ahead of schedule.
3.4 In total, 48 per cent of projects had revised completion dates compared to original estimates, with 12 per cent being brought forward and 36 per cent being delayed. Of those projects which had revised completion dates in 2007-08, approximately half revised their completion dates again in 2008-09.
3.5 The Department of Treasury and Finance and Major Projects Victoria provide services to support government departments in planning and managing infrastructure projects.
3.1. Introduction
The net infrastructure investment across the general government sector in 2008-09 totalled $4.1 billion, which included ‘school modernisation, extension and re-building works as part of the Government’s Victorian Schools Plan; major hospital redevelopments such as the Royal Melbourne Hospital; key water projects; and various road and rail upgrades.’42 The expenditure is broken down by department in Table 3.1.
This spending is an increase on the $3.9 billion spent in 2007-08, continuing the Government’s trend of increased spending on infrastructure.43 New asset investment projects with a TEI of $3.2 billion were announced in the 2008-09 Budget, in addition to $1.1 billion provided in the 2007-08 Budget Update.44
A number of projects were expanded and accelerated during 2008-09 as a result of the Global Financial Crisis.45 Signifi cant Commonwealth grants that were unanticipated at the time of the 2008-09 Budget were also received during the year, primarily connected with education, social housing and transport projects. These are discussed further in Chapter 7 of this report.
42 Department of Treasury and Finance, Financial Report for the State of Victoria 2008-09, p.3
43 Public Accounts and Estimates Committee, Report on the 2009-10 Budget Estimates – Part Two, October 2009, p.53
44 Department of Treasury and Finance, Budget Paper No. 2 – Strategy and Outlook 2008-09, p.12
45 Department of Treasury and Finance, Financial Report for the State of Victoria 2008-09, October 2009, p.9
Report on the 2008-09 Financial and Performance Outcomes
34
Table 3.1 shows that the Government’s overall total expenditure on non-fi nancial assets was 7 per cent less than the revised estimate for 2008-09. However, within that, there were signifi cant variations for individual departments between the revised estimate and the actual expenditure. Four departments had variations exceeding $100 million each, including one department with a variation in excess of $300 million.
Table 3.1: Purchase of non-fi nancial as sets 2008-09
Actual expenditure
2008-09
Revised estimated
expenditure 2008-09
Variation
($ million) ($ million) (%) ($ million)
Department of Education and Early Childhood Development
474.2 792.0 -40.1 -317.8
Department of Human Services 717.0 592.4 21.0 124.6
Department of Innovation, Industry and Regional Development
446.4 293.0 52.4 153.4
Department of Justice 227.0 199.7 13.7 27.3
Department of Planning and Community Development
27.7 23.8 16.4 3.9
Department of Premier and Cabinet 36.7 62.2 -41.0 -25.5
Department of Primary Industries 29.4 13.1 124.4 16.3
Department of Sustainability and Environment
50.2 201.8 -75.1 -151.6
Department of Transport 881.0 891.1 -1.1 -10.1
Department of Treasury and Finance 43.8 47.1 -7.0 -3.3
Parliament 9.3 7.4 25.7 1.9
Regulatory bodies and other part budget funded agencies
204.1 207.1 -1.4 -3
General government unallocated & adjustments
.. (82.6)
Total purchase of non-fi nancial assets
3,146.8 3,248.1 -3.1 -101.3
Less proceeds from asset sales (268.2) (190.5) 40.8 -77.7
Net contribution to other sectors of government
1,172.7 1,295.0 -9.4 -122.3
Net investment in fi xed assets 4,051.3 4,352.6 -6.9 -301.3
Source: Department of Treasury and Finance, response to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two, received 12 February 2010, p.6
35
Chapter 3: Public Sector Infrastructure and Asset Investment
3.2. Departmental explanations from instances of variations in asset spending against 2008-09 expenditure projections
The Committee asked all departments to provide details of asset investment projects identifi ed in Budget Information Paper No.1 – Public Sector Asset Investment Program 2008-09, with a TEI in excess of $10 million for which expenditure was expected to occur during 2008-09. Details sought by the Committee included:
estimated and actual expenditure;
specifi c reasons for any variations greater than 10 per cent between the estimated and the actual expenditure for 2008-09;
TEI and remaining expenditure;
the original, revised and forecast completion dates for each project; and
specifi c reasons for any variations between the original, revised and forecast completion dates.
3.3. Major infrastructure projects where actual expenditure varied from estimates for 2008-09
The information supplied by departments documented a range of discrepancies between actual expenditure and the 2008-09 Budget allocations. Of the 194 projects reported to the Committee, in only 27 per cent of cases was the actual expenditure within 10 per cent of the estimated amount. The Committee sought explanations for those projects where expenditure varied by more than 10 per cent from the estimate. The Committee also sought details of projects with budgeted expenditure for 2008-09 where no expenditure occurred.
In total, the expenditure on these 194 projects was $444.8 million less than budgeted. That fi gure is made up of under-expenditure on projects totalling $651.9 million and over-expenditure amounting to $207.2 million.
The details supplied by departments are provided in Table 3.5 and Table 3.7 and summarised in Table 3.2.When examining these tables, it is important to recognise that they present a ‘point in time’ view of the progress towards project completion and that a negative or positive expenditure variation does not necessarily mean a change in the overall TEI for the project. Variations may have a number of causes, including a shift in the planned expenditure pattern, which does not necessarily affect the overall project cost. Projects where there have been revised completion dates are discussed in Section 3.4.
Report on the 2008-09 Financial and Performance Outcomes
36
Table 3.2: Major infrast ructure projects’ actual expenditure compared to budget for 2008-09 (summary)
Department
Total number
of projects
Variation between actual and estimated expenditure Projects
with zero expenditure
>10% less than estimated
Within ±10% of estimate
>10% more than estimated
(No.) (%) (%) (%) (No.)
Education and Early Childhood Development 22 50.0 18.2 31.8 0
Human Services 52 46.2 23.1 30.8 3
Innovation, Industry and Regional Development 12 66.7 16.7 16.7 0
Justice 22 77.3 9.1 13.6 2
Planning and Community Development 3 66.7 33.3 0.0 0
Premier and Cabinet 2 0.0 100.0 0.0 0
Primary Industries 1 100.0 0.0 0.0 0
Sustainability and Environment 19 42.1 57.9 0.0 3
Transport 61 50.8 31.1 18.0 1
Treasury and Finance 0 0.0 0.0 0.0 0
Total 194 52.6 27.3 20.1 9
Source: Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two and clarifi cation questions
3.3.1 Major infrastructure projects with actual expenditure lower than estimated in 2008-09
There were 102 projects (53 per cent) where actual expenditure in 2008-09 was less than estimated by greater than 10 per cent. Together these under-expenditures resulted in $633.9 million less than budgeted being spent.46 Table 3.2 provides a summary by department. Table 3.5 provides the departments’ explanations for these variances.
The most common reason given for under-expenditure was project delays, most frequently delays associated with construction, permits or contracts. Reasons for project delays are discussed further in Section 3.4. Overall, as can be seen from Table 3.3, there is a clear concurrence between delayed projects and projects with signifi cant under-spends (i.e. 10 or more per cent less than budgeted) – 63 per cent of delayed projects had under-spends and 43 per cent of projects with under-spends also had delays.
46 An additional $18.0 million less than budgeted was spent on projects which under-spent by less than 10 per cent.
37
Chapter 3: Public Sector Infrastructure and Asset Investment
Table 3.3: Major infrast ructure projects with variances in under-expenditure greater than 10 per cent, by department
Department
Projects with both delays and signifi cant
under-spend
As a proportion of delayed projects
As a proportion of projects with under-spends
(No.) (%) (%)
Education and Early Childhood Development(a) 7 70.0 63.6
Human Services 8 53.3 33.3
Innovation, Industry and Regional Development 6 66.7 75.0
Justice 9 81.8 52.9
Planning and Community Development 1 50.0 50.0
Premier and Cabinet 0 0.0 0.0
Primary Industries 0 0.0 0.0
Sustainability and Environment 0 0.0 0.0
Transport 13 59.1 41.9
Treasury and Finance 0 0.0 0.0
Total 44 62.9 43.1
Note:
(a) Completion dates were not provided for one project.
Source: Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two and clarifi cation questions
Table 3.3 also shows that in 57 per cent of cases, expenditure was less than estimated for reasons other than project delays.
In some instances, less money was required than had been budgeted because project costs were less than had been anticipated.
For a number of projects, less expenditure than budgeted occurred because of revisions to project schedules which did not lead to delays to the projects’ end-dates. In some cases, elements of projects had been brought forward in the previous year (so that expenditure budgeted for 2008-09 was spent in 2007-08). In other cases, elements of projects were postponed (so that expenditure budgeted for 2008-09 is to be spent in 2009-10). A variety of reasons led to this rescheduling, such as:
works had been accelerated in 2007-08 due to favourable circumstances then;
information and communication technology equipment was postponed to allow for server reconfi guration;
property market impacts;
linking planned State funding with new Commonwealth stimulus funding; and
timber expected to be reusable turned out to need replacement.
Report on the 2008-09 Financial and Performance Outcomes
38
There were also several cases where the apparent under-spend was attributed to budgeted funding being spent as output funding rather than as asset funding. Similarly, a decision to deliver a project through a Public Private Partnership meant that originally planned funding is now not to be spent.
There were nine projects with a TEI over $10 million where funds were budgeted to be spent in 2008-09 but where no funds were actually spent. The explanations are provided in Table 3.4.
Table 3.4: Major infrastructure projects with no expenditure in 2008-09
Project BIP No 1 Budget 2008-09
estimated expenditure($ million)
Explanation for variance
Department of Human Services
Colac Area Health, Polwarth Nursing Home – Residential Aged Care Strategy (Colac)
0.2(a)Project complete.
Geelong Hospital Radiotherapy Service (Geelong) 0.7(a) Project complete.
HealthSMART Shared Information and Communication Technology (ICT) Operations (Statewide)
6.7
The planned refresh program was postponed to 2009-10 to allow server reconfi guration. The project is still scheduled to meet original end-date of June 2012.
Department of Justice
Melbourne North Police Station – Construction (Carlton–North Melbourne)
7.6
Project recorded zero net expenditure for 2008-09 as a result of a refund of property purchase costs from DTF and delays in the site search and compulsory acquisition process. The original site identifi ed for compulsory acquisition proved unsuitable due to contamination and, accordingly, a second site was identifi ed and the compulsory acquisition process recommenced. The TEI for this project was revised to $23.9m as part of the mid-year budget update.
VICSES Support – Construction and Asset Enhancement (Statewide)
5.3Project had no capital expenditure for 2008-09 following s.30 FMA budget transfer to output. This process has not affected the completion date.
Department of Sustainability and Environment
National Water Initiative – Macalister – Construction (Boisdale)
1.3
The Commonwealth required further information regarding water savings prior to approval of the milestone payment. Southern Rural Water Corporation provided the additional information in 2009-10 and the milestone payment is now expected to occur in March 2010. The project remains on course to deliver estimated water savings of 15 gigalitres for the environment in the Macalister and Thomson rivers.
Sustainable Water Initiatives – Maintenance (Statewide) 4.5
In 2008-09 this program was expected to fund works associated with the Werribee Vision Project. Approvals for stage one and two have been completed with the last four stages still requiring approval prior to the allocation of funding. Funding has been carried over into 2009-10 to allow for gaining the necessary approvals.
Wonthaggi Desalination Project 30.0 The Desalination Plant is being delivered through a Public Private Partnership.(b)
39
Chapter 3: Public Sector Infrastructure and Asset Investment
Project BIP No 1 Budget 2008-09
estimated expenditure($ million)
Explanation for variance
Department of Transport
Murray River Bridge Replacements – Crossings (Corowa, Echuca and Robinvale)
3.0
Project impacted by stakeholder and planning issues relating to bridge alignment.
Notes:
(a) Figure reported as 0 by the Department – this fi gure comes from Department of Treasury and Finance, Budget Information Paper No. 1 – Public Sector Asset Investment Program 2008-09, pp. 40–1.
(b) Information supplied by the Committee.
Source: Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two, except where noted
Report on the 2008-09 Financial and Performance Outcomes
40
Tabl
e 3.
5:
Maj
o r in
fras
truc
ture
pro
ject
s w
ith a
ctua
l exp
endi
ture
low
er th
an e
stim
ated
in 2
008-
09
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Dep
artm
ent o
f Edu
catio
n an
d Ea
rly C
hild
hood
Dev
elop
men
t
Alb
ert P
ark
Sec
onda
ry
Col
lege
– R
epla
cem
ent
Sch
ools
(Alb
ert P
ark)
13.0
5.9
-54.
6Va
rianc
e is
due
to d
emol
ition
an
d re
med
iatio
n w
orks
del
ayin
g co
mm
ence
men
t of c
onst
ruct
ion.
Th
e co
ntra
ct w
as a
war
ded
in D
ecem
ber 2
008.
2.0
16.0
50.5
Ben
digo
Edu
catio
n P
lan
– E
agle
haw
k –
Eag
leha
wk
Sec
onda
ry C
olle
ge –
S
tage
2 (E
agle
haw
k)
4.4
1.8
-58.
9Va
rianc
e is
due
to th
e fi n
alis
atio
n of
te
nder
doc
umen
ts ta
king
long
er th
an
orig
inal
ly a
ntic
ipat
ed, a
s a
resu
lt of
pr
ojec
t sco
pe b
eing
revi
ewed
to fi
t with
in
budg
etar
y co
nstra
ints
.
0.0
12.0
85.0
Ben
digo
Edu
catio
n P
lan
– K
anga
roo
Flat
– K
anga
roo
Flat
Sec
onda
ry C
olle
ge –
S
tage
2 (K
anga
roo
Flat
)
2.2
1.2
-47.
0Va
rianc
e is
due
to th
e fi n
alis
atio
n of
te
nder
doc
umen
ts ta
king
long
er th
an
orig
inal
ly a
ntic
ipat
ed, a
s a
resu
lt of
pr
ojec
t sco
pe b
eing
revi
ewed
to fi
t with
in
budg
etar
y co
nstra
ints
.
0.0
11.0
89.5
Bet
ter S
choo
ls T
oday
(v
ario
us s
choo
ls)
5.5
1.5
-73.
2Th
e pr
ogra
m w
as fi
nalis
ed in
200
8-09
. Th
e ex
pend
iture
in 2
008-
09 w
as
adju
sted
to $
1.47
5M a
s 20
07-0
8 ex
pend
iture
exc
eede
d th
e an
nual
al
loca
tion.
18.5
20.0
0.0
Bet
ter S
choo
ls T
oday
20
08-0
9 (v
ario
us)
35.0
11.4
-67.
3Va
rianc
e is
due
to m
any
scho
ols
com
bini
ng fu
ndin
g fro
m th
is p
rogr
am
with
fund
s pr
ovid
ed u
nder
the
Eco
nom
ic
Stim
ulus
Pac
kage
(ES
P) i
n or
der t
o de
rive
the
max
imum
adv
anta
ge fo
r in
divi
dual
pro
ject
s.
0.0
35.0
67.3
41
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Bro
adm
eado
ws
Reg
ener
atio
n –
Reg
ener
atio
n –
Erin
bank
S
econ
dary
Col
lege
and
H
illcr
est S
econ
dary
C
olle
ge (B
road
mea
dow
s)
8.1
7.0
-13.
3Va
rianc
e is
due
to d
elay
in te
nder
ing
proc
ess
as th
e de
sign
had
to b
e re
vise
d to
be
with
in b
udge
t.
1.0
10.4
22.9
Com
mun
ity F
acili
ties
Fund
(var
ious
)2.
61.
0-5
9.8
The
cont
ract
was
fi na
lised
in 2
008-
09.
The
expe
nditu
re in
200
8-09
was
ad
just
ed to
$1.
039M
as
2007
-08
expe
nditu
re e
xcee
ded
the
annu
al
allo
catio
n.
24.7
29.5
0.0
Dan
deno
ng –
R
egen
erat
ion
– D
ande
nong
Hig
h,
Cle
elan
d S
econ
dary
C
olle
ge a
nd D
ovet
on
Sec
onda
ry C
olle
ge –
S
tage
2 (D
ande
nong
)
0.9
0.6
-31.
0Va
rianc
e is
due
to th
e de
lay
in a
war
ding
th
e co
ntra
ct a
s th
e sc
ope
of w
ork
chan
ged
at th
e de
sign
and
dev
elop
men
t st
age.
Con
stru
ctio
n ac
cele
rate
d in
20
09-1
0.
0.0
10.0
93.6
John
Mon
ash
Sci
ence
S
choo
l – M
onas
h U
nive
rsity
, Cla
yton
C
ampu
s (C
layt
on)
14.0
8.1
-42.
0Va
rianc
e is
due
to th
e na
ture
of b
uild
ing
wor
ks a
nd e
xpen
ditu
re in
200
8-09
whi
ch
was
low
er th
an e
stim
ated
at b
udge
t fo
rmul
atio
n tim
e bu
t will
acc
eler
ate
shar
ply
in th
e fi r
st h
alf o
f 200
9-10
.
1.2
20.0
53.4
Report on the 2008-09 Financial and Performance Outcomes
42
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Vario
us S
choo
ls –
Le
adin
g S
choo
ls F
und
– M
oder
nisa
tion
(var
ious
sch
ools
)
2.8
1.1
-59.
0Th
is in
itiat
ive
com
pris
ed n
umer
ous
proj
ects
.Th
e va
rianc
e is
due
to a
sig
nifi c
ant
num
ber o
f pro
ject
s be
ing
dela
yed
in p
lann
ing
stag
e an
d re
vise
d im
plem
enta
tion
time
fram
es d
ue
to s
choo
ls e
nter
ing
into
clu
ster
ar
rang
emen
ts o
r sch
ools
com
bini
ng
fund
ing
from
this
pro
gram
with
oth
er
capi
tal w
orks
pro
ject
s.
9.4
12.1
13.3
Wes
tern
Hei
ghts
R
egen
erat
ion
– R
egen
erat
ion
– W
este
rn
Hei
ghts
Sec
onda
ry
Col
lege
– T
hree
C
ampu
ses
(Ham
lyn
Hei
ghts
)
13.6
0.8
-94.
2Va
rianc
e is
due
to th
e do
cum
enta
tion
bein
g su
spen
ded
pend
ing
reso
lutio
n of
the
Join
t Use
Agr
eem
ent a
nd
land
acq
uisi
tion
issu
es w
ith th
e C
ity
of G
reat
er G
eelo
ng. C
onst
ruct
ion
com
men
ced
in N
ovem
ber 2
009.
0.0
13.8
94.3
Dep
artm
ent o
f Hum
an S
ervi
ces(a
)
Col
ac A
rea
Hea
lth,
Pol
war
th N
ursi
ng H
ome
–Res
iden
tial A
ged
Car
e S
trate
gy (C
olac
)(b)
0.2
0.0
-100
.0P
roje
ct c
ompl
ete.
11.5
13.4
0.0
43
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Dis
abili
ty S
ervi
ces
Stra
tegi
c R
efur
bish
men
t an
d R
epla
cem
ent
Pro
gram
Sta
ge 2
(S
tate
wid
e)
8.2
1.5
-81.
6B
oth
the
SR
RP
and
the
Col
anda
pr
ojec
ts h
ave
achi
eved
fi na
ncia
l clo
sure
. A
dela
y in
con
stru
ctio
n of
the fi n
al s
uite
of
hou
ses
has
occu
rred
due
to th
e de
velo
pmen
t of a
join
t cap
ital p
rogr
am
betw
een
Dis
abili
ty S
ervi
ces
DH
S
and
the
Offi
ce o
f Hou
sing
Inno
vativ
e H
ousi
ng O
ppor
tuni
ties
Pro
gram
(IH
OP
). Th
is h
as re
sulte
d in
the
over
all e
nd-d
ate
bein
g am
ende
d to
late
200
9. P
roje
ct
rem
ains
with
in o
rigin
al T
EI.
3.5
15.0
66.5
Eas
tern
Hea
lth M
enta
l H
ealth
Red
evel
opm
ent
Sta
ge 1
(Box
Hill
, R
ingw
ood
Eas
t)
7.5
6.3
-15.
9A
ll co
nstru
ctio
n w
orks
com
plet
e w
ith
only
out
stan
ding
min
or w
ork
pack
ages
to
be
com
plet
e. P
roje
ct in
fi na
ncia
l co
mpl
etio
n ph
ase.
22.6
31.3
7.7
Ele
ctro
nic
Pre
scrib
ing
in
Key
Vic
toria
n H
ospi
tals
(S
tate
wid
e)
13.6
7.2
-47.
1D
elay
s as
soci
ated
with
fi na
lisin
g ag
enci
es to
par
ticip
ate
in th
e ro
llout
of
the
new
sys
tem
resu
lted
in d
elay
s to
th
e ov
eral
l im
plem
enta
tion
sche
dule
. A
genc
y pa
rtici
patio
n ha
s no
w b
een
fi nal
ised
, with
the
proj
ect e
nd-d
ate
adju
sted
to D
ecem
ber 2
010.
7.4
21.0
30.5
Gee
long
Hos
pita
l E
mer
genc
y D
epar
tmen
t R
edev
elop
men
t (G
eelo
ng)
4.4
3.9
-11.
4A
ll co
nstru
ctio
n w
orks
com
plet
e an
d fa
cilit
y op
erat
iona
l. P
roje
ct is
in fi
nanc
ial
com
plet
ion
phas
e.
22.9
27.6
2.9
Gee
long
Hos
pita
l R
adio
ther
apy
Ser
vice
(G
eelo
ng)(b
)
0.7
0.0
-100
.0P
roje
ct c
ompl
ete.
14.3
15.3
0.0
Report on the 2008-09 Financial and Performance Outcomes
44
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Gra
ce M
cKel
lar C
entre
–R
edev
elop
men
t Sta
ge 2
(G
eelo
ng)
2.1
0.4
-79.
0Th
e pr
ojec
t red
evel
opm
ent h
as a
chie
ved
occu
patio
n in
Jun
e 20
07. T
here
are
a
num
ber o
f min
or e
nhan
cem
ents
/min
or
wor
ks (t
hat f
all w
ithin
the
mas
ter p
lan)
th
at a
re b
eing
fi na
lised
and
pro
gres
sing
w
ithin
the
rem
aini
ng p
roje
ct fu
nds.
Fi
nanc
ial r
econ
cilia
tion
of th
e pr
ojec
t is
near
ing
com
plet
ion.
44.7
52.8
3.2
Gro
veda
le A
ged
Car
e Fa
cilit
y D
evel
opm
ent
(Gro
veda
le)
3.2
2.6
-16.
3C
onst
ruct
ion
com
plet
e. P
roje
ct in
fi n
anci
al c
ompl
etio
n ph
ase
20.2
23.4
2.2
Hea
lthS
MA
RT
Sha
red
Info
rmat
ion
and
Com
mun
icat
ion
Tech
nolo
gy (I
CT)
O
pera
tions
(Sta
tew
ide)
6.7
0.0
-100
.0Th
e pl
anne
d re
fresh
pro
gram
was
po
stpo
ned
to 2
009-
10 to
allo
w s
erve
r re
confi
gur
atio
n. T
he p
roje
ct is
stil
l sc
hedu
led
to m
eet o
rigin
al e
nd-d
ate
of
June
201
2.
0.0
26.9
100.
0
Hei
delb
erg
Rep
atria
tion
Hos
pita
l Men
tal H
ealth
R
edev
elop
men
t (H
eide
lber
g)
7.3
0.1
-98.
7Va
rianc
e du
e to
del
ay in
con
stru
ctio
n st
art d
ate
due
to m
odifi
catio
ns to
orig
inal
de
sign
, fol
low
ing
inte
rnal
revi
ews.
C
onst
ruct
ion
end-
date
d ha
s be
en
amen
ded
to O
ctob
er 2
010.
0.0
13.5
99.3
Hos
pita
l Ene
rgy
Sup
ply
Pro
ject
(Sta
tew
ide)
10.0
2.0
-79.
6D
elay
s in
the
proc
urem
ent o
f maj
or
piec
es o
f pla
nt (p
rinci
pally
die
sel
gene
rato
rs) h
as re
sulte
d in
a d
elay
to
over
all p
roje
ct. P
roje
ct is
now
exp
ecte
d to
be
com
plet
ed b
y Ju
ly 2
010.
0.0
23.6
91.4
Kew
Res
iden
tial S
ervi
ces
Red
evel
opm
ent (
Kew
)5.
80.
5-9
1.2
Con
stru
ctio
n w
orks
com
plet
e. R
emed
ial
wor
ks a
re c
ontin
uing
and
are
exp
ecte
d to
be
com
plet
e by
Jun
e 20
10. P
roje
ct is
in
fi na
ncia
l com
plet
ion
phas
e.
31.1
82.8
2.0
45
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Med
ical
Equ
ipm
ent
Rep
lace
men
t Pro
gram
20
08-0
9 (S
tate
wid
e)
35.0
30.4
-13.
2A
ll fu
ndin
g fo
r 200
8-09
has
bee
n co
mm
itted
. Sev
eral
larg
e in
voic
es
asso
ciat
ed w
ith a
num
ber o
f hig
h-co
st
med
ical
equ
ipm
ent i
tem
s st
ill to
be
paid
. P
roje
ct to
be fi n
anci
ally
com
plet
e by
Ju
ne 2
010.
0.0
35.0
13.2
Met
ropo
litan
and
Rur
al
Am
bula
nce
Ser
vice
s –
Sta
tion
Upg
rade
s (S
tate
wid
e)
7.4
6.6
-10.
7Fi
nalis
atio
n of
the
loca
tion
of th
e K
nox
faci
lity
due
to a
loca
l pla
nnin
g is
sue
resu
lted
in a
del
ay to
the
com
men
cem
ent o
f con
stru
ctio
n fo
r th
is s
ite. A
site
has
now
bee
n pr
ocur
ed
and
cons
truct
ion
com
men
ced,
with
the
over
all p
roje
ct e
xpec
ted
to b
e co
mpl
eted
by
Jun
e 20
10.
2.2
11.7
25.5
Nor
th R
ichm
ond
Com
mun
ity H
ealth
C
entre
Rel
ocat
ion
(Nor
th
Ric
hmon
d)
1.0
0.3
-69.
5To
wn
plan
ning
issu
es a
ffect
ed
prog
ress
ion
of th
e pr
ojec
t has
resu
lted
in a
n ov
eral
l del
ay in
the
proj
ect.
An
alte
rnat
e si
te h
as b
een
iden
tifi e
d an
d th
e pr
ojec
t has
reco
mm
ence
d an
d pr
ogre
ssin
g to
the
revi
sed
prog
ram
.
4.3
22.5
79.6
Nor
thea
st H
ealth
W
anga
ratta
– N
ursi
ng
Hom
e R
edev
elop
men
t (W
anga
ratta
)
0.6
0.2
-67.
7C
onst
ruct
ion
com
plet
e. P
roje
ct in
fi n
anci
al c
ompl
etio
n ph
ase
with
ou
tsta
ndin
g in
voic
es to
be
paid
.
10.0
10.5
3.0
Nor
ther
n H
ospi
tal
Red
evel
opm
ent S
tage
2a
(Epp
ing)
1.2
0.3
-75.
0C
onst
ruct
ion
wor
ks c
ompl
ete.
Del
ays
in th
e fi n
alis
atio
n of
an
envi
ronm
enta
l au
dit o
n th
e si
te d
elay
ed c
ompl
etio
n of
the
over
all p
roje
ct. R
emed
ial w
orks
ar
e co
ntin
uing
and
are
exp
ecte
d to
be
com
plet
e by
Jun
e 20
10. P
roje
ct is
in
fi nan
cial
com
plet
ion
phas
e.
23.3
24.5
3.8
Report on the 2008-09 Financial and Performance Outcomes
46
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Pla
cem
ent a
nd S
uppo
rt R
esid
entia
l Fac
ility
R
enew
al S
trate
gy –
Sta
ge
6 (S
tate
wid
e)
6.9
5.6
-18.
5A
dela
y in
fi na
lisin
g te
nder
ing
docu
men
ts fo
r tw
o of
the
requ
ired
14
hous
es re
sulte
d in
an
initi
al u
nder
spen
d fo
r the
pro
ject
as
com
men
cem
ent o
f co
nstru
ctio
n w
as d
elay
ed. H
owev
er,
the
proj
ect i
s no
w p
rogr
essi
ng a
head
of
the
initi
al fo
reca
st e
nd-d
ate
due
to
favo
urab
le b
uild
ing
cond
ition
s.
6.9
14.2
11.7
Roy
al M
elbo
urne
Hos
pita
l B
rickw
ork
Rec
tifi c
atio
n (P
arkv
ille)
1.8
1.0
-47.
5U
rgen
t bric
kwor
k re
ctifi
catio
n w
orks
co
mpl
eted
. Pro
ject
is in
fi na
ncia
l co
mpl
etio
n ph
ase,
with
out
stan
ding
in
voic
es to
be
paid
by
June
201
0.
25.7
27.7
3.7
Sun
shin
e H
ospi
tal
Exp
ansi
on a
nd
Red
evel
opm
ent –
Sta
ge 1
(S
unsh
ine)
11.1
7.6
-31.
7D
elay
in a
ppoi
ntm
ent o
f con
stru
ctio
n m
anag
er, w
hich
del
ayed
sta
rt of
wor
ks
on s
ite. R
esch
edul
ed w
orks
to b
e co
mpl
eted
with
Sta
ge 2
.
6.2
20.0
31.1
Sun
shin
e H
ospi
tal
Exp
ansi
on a
nd
Red
evel
opm
ent –
Sta
ge 2
(S
unsh
ine)
13.3
6.0
-54.
6P
roje
cted
cas
h fl o
w o
ver-
estim
ated
in
fi rst
yea
r of c
onst
ruct
ion
prog
ram
me.
O
vera
ll, p
roje
ct is
pro
gres
sing
to o
rigin
al
sche
dule
.
0.0
73.5
91.8
Sup
er C
linic
s (M
etro
polit
an)
1.2
0.9
-30.
0C
onst
ruct
ion
on a
ll th
ree
site
s (C
raig
iebu
rn, M
elto
n an
d Li
lyda
le) i
s co
mpl
ete.
The
pro
ject
is in
fi na
ncia
l co
mpl
etio
n/de
fect
s lia
bilit
y ph
ase
with
ou
tsta
ndin
g in
voic
es to
be
paid
.
40.8
41.7
0.1
War
rack
nabe
al
Nur
sing
Hom
e S
tage
1
Red
evel
opm
ent
(War
rack
nabe
al)
0.9
0.4
-56.
6M
ain
cons
truct
ion
wor
ks c
ompl
eted
w
ithin
orig
inal
tim
elin
es. P
roje
ct is
in
fi nan
cial
com
plet
ion/
defe
ct li
abili
ty
phas
e.
20.0
21.5
4.8
47
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
War
rnam
bool
Hos
pita
l R
edev
elop
men
t – S
tage
1B
(War
rnam
bool
)
4.5
2.9
-34.
9Th
e un
ders
pend
is d
ue to
a d
elay
in
cons
truct
ion
of th
e am
bula
nce
stat
ion
due
to is
sues
ass
ocia
ted
with
site
se
lect
ion.
The
se is
sues
hav
e no
w b
een
rect
ifi ed
and
the
proj
ect i
s pr
ogre
ssin
g to
the
revi
sed
sche
dule
with
com
plet
ion
expe
cted
in F
eb 2
011.
0.0
70.1
95.8
Dep
artm
ent o
f Inn
ovat
ion,
Indu
stry
and
Reg
iona
l Dev
elop
men
t
Aut
omot
ive
Cen
tre o
f E
xcel
lenc
e, K
anga
n B
atm
an T
AFE
(Doc
klan
ds)
– S
tage
2
10.0
6.0
-40.
4Th
is p
roje
ct is
at t
his
poin
t abo
ut
2 m
onth
s be
hind
pro
gram
but
stil
l an
ticip
ated
to b
e co
mpl
eted
in J
une/
July
20
11.
The
dela
y to
the
proj
ect c
an b
e at
tribu
ted
to:
th
e re
med
iatio
n of
soi
l con
tam
inat
ion
arou
nd a
dec
omm
issi
oned
mai
n tru
nk
sew
er; a
nd
the
desi
gn te
am n
ot m
eetin
g ke
y do
cum
enta
tion
mile
ston
e da
tes.
1.2
30.0
76.3
Report on the 2008-09 Financial and Performance Outcomes
48
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Chi
shol
m In
stitu
te o
f TA
FE –
Tra
de (A
utom
otiv
e &
Log
istic
s) T
rain
ing
Cen
tre (D
ande
nong
) –
Com
mon
wea
lth s
uppo
rted
proj
ect
3.7
0.3
-90.
6Th
e de
lay
to th
e pr
ojec
t can
be
attri
bute
d to
:
the
desi
gn te
am b
eing
una
ble
to m
eet
docu
men
tatio
n m
ilest
one
date
s du
e to
unc
erta
inty
at t
he T
AFE
on
the fi n
al
proj
ect s
cope
; and
co
nstru
ctio
n te
nder
s re
ceiv
ed
exce
eded
the
proj
ect b
udge
t and
the
desi
gn w
as s
ubje
cted
to a
n ex
tens
ive
valu
e m
anag
emen
t pro
cess
.A
build
er h
as n
ow b
een
appo
inte
d an
d co
nstru
ctio
n pr
ogre
ss c
laim
s w
ill e
nsur
e a
stea
dy c
ash fl o
w.
0.0
11.5
97.0
Nor
ther
n M
elbo
urne
In
stitu
te o
f TA
FE –
C
ampu
s re
deve
lopm
ent
stag
e 1
(Epp
ing)
3.0
1.6
-44.
5Th
e de
lay
to th
e pr
ojec
t can
be
attri
bute
d to
:
the
initi
al p
rogr
am a
nd p
roje
ct c
ash
fl ow
for t
he d
ocum
enta
tion
phas
e of
th
e pr
ojec
t was
opt
imis
tic a
s to
the
time
to s
ettle
issu
es; a
nd
the
tend
ers
rece
ived
exc
eede
d th
e pr
ojec
t bud
get a
nd th
e de
sign
has
be
en s
ubje
cted
to a
n ex
tens
ive
valu
e m
anag
emen
t pro
cess
.Th
e to
tal p
roje
ct c
ost h
as n
ow b
een
redu
ced
to m
atch
pro
ject
fund
ing
and
a bu
ilder
has
bee
n ap
poin
ted.
0.0
10.5
84.3
49
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Par
kvill
e G
arde
ns
(Com
mon
wea
lth G
ames
Vi
llage
) – S
ocia
l hou
sing
co
mpo
nent
– C
onst
ruct
ion
(Mel
bour
ne)
9.7
1.6
-83.
3Th
ere
has
been
sig
nifi c
antly
less
ex
pend
iture
on
the
Par
kvill
e G
arde
ns
proj
ect t
han
was
orig
inal
ly a
ntic
ipat
ed
larg
ely
attri
bute
d to
the
slow
dow
n in
the
resi
dent
ial m
arke
t as
a re
sult
of e
cono
mic
con
ditio
ns. T
his
has
resu
lted
in th
e po
stpo
nem
ent o
f cer
tain
w
orks
(nam
ely
the
cons
truct
ion
of th
e Lo
t 8 to
wnh
ouse
s an
d fre
eway
wal
l ap
artm
ents
) and
has
mea
nt th
at th
e G
over
nmen
t’s re
quire
men
t to
prov
ide
fi nan
cial
sup
port
for e
lem
ents
suc
h as
env
ironm
enta
l enh
ance
men
ts to
th
e fre
eway
apa
rtmen
ts h
as in
turn
be
en d
efer
red.
Thi
s is
in li
ne w
ith th
e de
velo
pmen
t agr
eem
ent a
llow
ing
the
deve
lope
r up
to 2
012-
13 w
ith o
ptio
ns to
co
mpl
ete
the
deve
lopm
ent.
The
need
to u
nder
take
con
tam
inat
ion
asse
ssm
ents
and
ass
ocia
ted
clea
n up
s to
ena
ble
cons
truct
ion
to c
omm
ence
has
al
so c
ontri
bute
d to
the
dela
y.W
ith re
spec
t to
the
valu
e m
anag
emen
t pr
ogra
m th
at h
as ta
ken
plac
e, th
ere
has
been
real
ignm
ent i
n th
e pr
ogra
mm
ing
and
loca
tion
of c
erta
in u
ses
whi
ch in
tu
rn th
at h
as m
eant
that
cer
tain
act
iviti
es
have
bee
n re
sche
dule
d/de
ferr
ed.
25.4
35.1
23.1
Report on the 2008-09 Financial and Performance Outcomes
50
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Prin
ces
Pie
r Res
tora
tion
(Por
t Mel
bour
ne)
11.6
2.5
-78.
4S
ignifi c
ant a
mou
nts
of th
e ex
istin
g tim
ber,
whi
ch w
as in
itial
ly th
ough
t to
be re
usab
le, r
equi
red
repl
acin
g w
hich
im
pact
ed o
n th
e bu
dget
and
tim
ing
of th
is p
roje
ct. A
dditi
onal
fund
ing
of
$20
mill
ion
was
app
rove
d as
par
t of
the
2009
-10
Bud
get t
o de
mol
ish
the
entir
e P
rince
s P
ier d
eck
stru
ctur
e an
d re
cons
truct
196
m o
f the
dec
k (o
rigin
al
Sta
ge 1
sco
pe),
and
rest
ore
and
refu
rbis
h th
e ga
teho
use
(Sta
ge 2
).
2.4
14.0
65.1
Vict
oria
Uni
vers
ity
– C
onso
lidat
ion
of
Eng
inee
ring
and
ICT
– C
omm
onw
ealth
sup
porte
d pr
ojec
t
0.1
0.1
-36.
3P
roje
ct c
ompl
eted
slig
htly
und
er b
udge
t.13
.513
.60.
3
Will
iam
Ang
liss
Inst
itute
of
TA
FE –
New
teac
hing
fa
cilit
y an
d ca
mpu
s re
deve
lopm
ent –
C
omm
onw
ealth
sup
porte
d pr
ojec
t
9.1
7.7
-15.
3Th
e fi n
al p
aym
ent i
s ou
tsta
ndin
g as
the
TAFE
and
the
build
er a
re fi
nalis
ing
the
cost
of v
aria
tions
to b
e pa
id fr
om p
roje
ct
cont
inge
ncy.
3.0
12.1
11.4
Wod
onga
Inst
itute
of
TAFE
– N
atio
nal l
ogis
tics
and
driv
er s
kills
trai
ning
ce
ntre
(Wod
onga
)
4.0
0.0
-99.
0Th
e de
lay
for t
he p
roje
ct w
as d
ue to
the
inab
ility
to a
cqui
re a
sui
tabl
e si
te fo
r the
co
nstru
ctio
n of
the
cent
re.
0.0
15.5
103.
0
51
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Dep
artm
ent o
f Jus
tice(c
)
Ara
rat P
olic
e S
tatio
n (P
olic
e S
tatio
ns P
rogr
am
2007
-08)
– C
onst
ruct
ion
(Ara
rat)
6.0
0.9
-85.
5Vi
ctor
ian
Civ
il an
d A
dmin
istra
tive
Trib
unal
(VC
AT) p
roce
sses
del
ayed
ex
pect
ed p
rogr
ess
of th
is p
roje
ct d
urin
g 20
08-0
9. T
he T
EI f
or th
is p
roje
ct w
as
revi
sed
to $
10.5
3m a
s pa
rt of
the
mid
-yea
r bud
get u
pdat
e pr
oces
s.
1.0
13.5
64.2
Bay
side
Pol
ice
Sta
tion
(Pol
ice
Sta
tions
Pro
gram
20
07-0
8) –
Con
stru
ctio
n (S
andr
ingh
am)
5.9
4.5
-23.
7A
com
petit
ive
mar
ket d
eliv
ered
low
er
than
ant
icip
ated
pro
ject
cos
ts. T
he T
EI
for t
his
proj
ect w
as re
vise
d to
$15
.03m
as
par
t of t
he m
id-y
ear b
udge
t upd
ate.
Th
is h
as n
ot a
ffect
ed th
e co
mpl
etio
n da
te.
0.7
13.0
75.6
Box
Hill
Pol
ice
Sta
tion
(Pol
ice
Sta
tions
Pro
gram
20
07-0
8) –
Con
stru
ctio
n (B
ox H
ill)
6.6
4.0
-39.
4A
com
petit
ive
mar
ket d
eliv
ered
low
er
than
ant
icip
ated
pro
ject
cos
ts. T
he T
EI
for t
his
proj
ect w
as re
vise
d to
$19
.76m
as
par
t of t
he m
id-y
ear b
udge
t upd
ate.
Th
is h
as n
ot a
ffect
ed th
e co
mpl
etio
n da
te.
1.6
16.5
85.7
Bui
ldin
g C
onfi d
ence
in
Cor
rect
ions
–
Con
stru
ctio
n/A
sset
E
nhan
cem
ent (
Sta
tew
ide/
Rur
al)
78.2
30.0
-61.
6Th
e de
cisi
on to
del
iver
the
new
A
rara
t pris
on th
roug
h a
Pub
lic P
rivat
e P
artn
ersh
ip, a
long
with
ass
ocia
ted
plan
ning
and
con
tract
ual i
ssue
s, h
as
re-p
hase
d fu
ndin
g fo
r thi
s pr
ojec
t. Th
e TE
I was
revi
sed
to $
315.
04m
dur
ing
the
mid
-yea
r bud
get u
pdat
e as
a re
sult
of a
Sec
tion
30 tr
ansf
er. T
his
has
not
affe
cted
the
com
plet
ion
date
.
0.0
316.
690
.0
Report on the 2008-09 Financial and Performance Outcomes
52
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Car
rum
Dow
ns P
olic
e S
tatio
n (P
olic
e S
tatio
ns
Pro
gram
200
7-08
) –
Con
stru
ctio
n (C
arru
m
Dow
ns)
6.1
0.5
-92.
0P
roje
ct d
elay
ed d
ue to
pro
tract
ed s
ite
iden
tifi c
atio
n an
d ac
quis
ition
pro
cess
. Th
e TE
I for
this
pro
ject
was
revi
sed
to
$8.1
86m
as
part
of th
e m
id-y
ear b
udge
t up
date
.
0.9
14.0
48.3
Evi
dent
iary
Aud
io V
isua
l R
ecor
ding
Equ
ipm
ent –
R
epla
cem
ent (
Mel
bour
ne)
7.5
5.2
-31.
3P
roje
ct d
elay
ed d
ue to
pro
tract
ed te
nder
pr
oces
s. T
his
has
not a
ffect
ed th
e co
mpl
etio
n da
te. T
he T
EI f
or th
is p
roje
ct
was
revi
sed
to $
18.1
87m
as
part
of th
e m
id-y
ear b
udge
t upd
ate.
0.0
19.0
68.4
Infri
ngem
ent M
anag
emen
t an
d E
nfor
cem
ent
Ser
vice
s –
Enh
ance
men
t/ E
quip
men
t (S
tate
wid
e)
2.5
1.8
-29.
8P
roje
ct d
elay
ed d
ue to
con
tract
or
expe
rienc
ing
issu
es in
the
com
plet
ion
of
the
requ
irem
ents
defi
niti
on a
nd d
esig
n ph
ases
of t
he p
roje
ct. T
his
has
not
affe
cted
the
com
plet
ion
date
.
2.5
27.9
84.8
Inte
grat
ed C
ourts
M
anag
emen
t Sys
tem
(IC
MS
) – A
sset
E
nhan
cem
ent (
Sta
tew
ide)
9.2
8.0
-12.
2P
roje
ct d
elay
ed d
ue to
issu
es in
rollo
ut
of th
e ca
se m
anag
emen
t sof
twar
e.
24.2
32.3
0.0
Just
ice
Sys
tem
Maj
or
Crim
es R
esou
rcin
g N
eeds
–
Ass
et E
nhan
cem
ent
(Sta
tew
ide)
0.8
0.2
-77.
2P
roje
ct d
elay
ed d
ue to
cha
nges
to
pro
ject
sco
pe a
nd s
yste
m
impl
emen
tatio
n is
sues
. The
TE
I for
this
pr
ojec
t was
revi
sed
to $
12.7
66m
as
part
of th
e m
id-y
ear b
udge
t upd
ate
proc
ess.
11.4
13.6
3.8
53
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Kyn
eton
Pol
ice
Sta
tion
(Pol
ice
Sta
tions
Pro
gram
20
07-0
8) –
Con
stru
ctio
n (K
ynet
on)
5.3
0.7
-86.
7P
roje
ct d
elay
ed d
ue to
pro
tract
ed
coun
cil p
lann
ing
proc
ess,
add
ition
al
cond
ition
s im
pose
d by
Her
itage
Vic
toria
w
hich
resu
lted
in a
rede
sign
of t
he
site
mas
ter-
plan
and
a p
ortio
n of
the
build
ing.
The
TE
I for
this
pro
ject
was
re
vise
d to
$12
.241
m a
s pa
rt of
the
mid
-yea
r bud
get u
pdat
e.
0.2
11.0
102.
7
Lily
dale
Pol
ice
Sta
tion
– C
onst
ruct
ion
(Lily
dale
)11
.53.
2-7
2.7
Pro
ject
del
ayed
due
to p
rotra
cted
co
unci
l pla
nnin
g pr
oces
s.
2.2
13.5
60.3
Mel
bour
ne L
egal
Pre
cinc
t M
aste
r Pla
n –
Old
Cou
nty
Cou
rt R
efur
bish
men
t –
Con
stru
ctio
n/E
nhan
cem
ent
(Mel
bour
ne)
17.5
3.0
-82.
9P
roje
ct d
elay
ed d
ue to
iden
tifi c
atio
n an
d re
mov
al o
f haz
ardo
us w
aste
(asb
esto
s),
whi
ch in
turn
del
ayed
the
cont
ract
or
appo
intm
ent.
0.0
22.5
86.7
Mel
bour
ne N
orth
Pol
ice
Sta
tion
– C
onst
ruct
ion
(Car
lton–
Nor
th
Mel
bour
ne)
7.6
0.0
-100
.0P
roje
ct re
cord
ed z
ero
net e
xpen
ditu
re
for 2
008-
09 a
s a
resu
lt of
a re
fund
of
prop
erty
pur
chas
e co
sts
from
DTF
and
de
lays
in th
e si
te s
earc
h an
d co
mpu
lsor
y ac
quis
ition
pro
cess
. The
orig
inal
site
id
entifi
ed
for c
ompu
lsor
y ac
quis
ition
pr
oved
uns
uita
ble
due
to c
onta
min
atio
n an
d, a
ccor
ding
ly, a
sec
ond
site
was
id
entifi
ed
and
the
com
puls
ory
acqu
isiti
on
proc
ess
reco
mm
ence
d. T
he T
EI f
or th
is
proj
ect w
as re
vise
d to
$23
.9m
as
part
of
the
mid
-yea
r bud
get u
pdat
e.
0.6
15.9
100.
5
Mod
erni
sing
Cor
onia
l S
ervi
ces
– C
onst
ruct
ion
(Mel
bour
ne)
6.0
4.2
-29.
5P
roje
ct d
elay
ed d
ue to
iden
tifi c
atio
n of
la
tent
site
con
tam
inat
ion.
1.
031
.783
.4
Report on the 2008-09 Financial and Performance Outcomes
54
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Moo
rabb
in C
ourt
– C
ompl
ex: C
onst
ruct
ion
(Moo
rabb
in)
0.5
0.4
-11.
0Th
is p
roje
ct c
omm
ence
d in
200
3-04
an
d w
as p
ract
ical
ly c
ompl
eted
dur
ing
2008
-09.
The
resi
dual
fund
s fa
cilit
ated
fi n
anci
al c
lose
of t
he p
roje
ct d
urin
g 20
09-1
0.
21.2
28.1
1.2
Sw
an H
ill P
olic
e S
tatio
n (P
olic
e S
tatio
ns P
rogr
am
2007
-08)
– C
onst
ruct
ion
(Sw
an H
ill)
6.1
4.8
-21.
6P
roje
ct b
enefi
ted
from
a lo
wer
con
tract
am
ount
than
the
orig
inal
con
stru
ctio
n bu
dget
. Und
er s
pend
was
not
a re
sult
of a
ny s
lippa
ge o
f the
pro
ject
pro
gram
. Th
e TE
I for
this
pro
ject
was
revi
sed
to $
16.0
75m
as
part
of th
e m
id-y
ear
budg
et u
pdat
e. T
his
has
not a
ffect
ed th
e co
mpl
etio
n da
te.
1.7
15.0
64.3
VIC
SE
S S
uppo
rt –
Con
stru
ctio
n an
d A
sset
E
nhan
cem
ent (
Sta
tew
ide)
5.3
0.0
-100
.0P
roje
ct h
ad n
o ca
pita
l exp
endi
ture
for
2008
-09
follo
win
g s.
30 F
MA
budg
et
trans
fer t
o ou
tput
. Thi
s pr
oces
s ha
s no
t af
fect
ed th
e co
mpl
etio
n da
te.
3.9
11.8
59.9
Dep
artm
ent o
f Pla
nnin
g an
d C
omm
unity
Dev
elop
men
t
Foot
scra
y Tr
ansi
t City
–
Upg
rade
21
.37.
2-6
6.3
The
over
all c
ompl
etio
n da
te fo
r thi
s pr
ojec
t rem
ains
201
0. T
he u
pdat
ed
expe
nditu
re p
rofi l
e refl e
cts
revi
sion
s to
the
proj
ect s
ched
ule
and
cash
fl ow
fo
llow
ing
the
awar
d of
the
tend
er.
10.2
46.1
62.3
Tran
sit C
ities
: Rev
italis
ing
Cen
tral D
ande
nong
–
Upg
rade
Wor
ks
(Dan
deno
ng)
59.7
40.4
-32.
4A
sset
inve
stm
ent c
over
s la
nd a
cqui
sitio
n an
d co
nstru
ctio
n of
pro
ject
s re
latin
g to
Lon
sdal
e S
treet
and
City
Stre
et.
Adj
ustm
ents
to th
e ex
pend
iture
profi l
e refl e
ct u
pdat
ed p
roje
ct s
ched
ules
.
109.
724
3.4
38.4
55
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Dep
artm
ent o
f Prim
ary
Indu
strie
s
Res
ourc
e R
ight
s A
lloca
tion
and
Man
agem
ent P
rogr
am
1.7
0.2
-90.
9Va
rianc
e du
e to
the
proc
urem
ent o
f P
rogr
am M
anag
emen
t res
ourc
es b
eing
de
laye
d. O
rigin
al p
hasi
ng e
stim
ate
for
this
pro
cure
men
t req
uire
d re
adju
stm
ent
how
ever
, thi
s de
lay
will
hav
e no
impa
ct
on p
roje
ct o
utco
mes
.Th
e R
esou
rce
Rig
hts
Allo
catio
n an
d M
anag
emen
t Pro
gram
(RR
AM
) is
a D
PI fl
ags
hip
prog
ram
. The
eng
agem
ent
of a
sen
ior e
xper
ienc
ed p
rogr
am
man
ager
with
exp
ertis
e in
bus
ines
s an
d IC
T tra
nsfo
rmat
ion
prog
ram
s w
as
criti
cal t
o th
e pr
ogra
ms
succ
ess.
The
en
gage
men
t of t
he s
peci
alis
t pro
gram
m
anag
er w
as d
elay
ed d
ue to
the
lack
of
reso
urce
ava
ilabi
lity
in th
e IC
T la
bour
m
arke
t dur
ing
mid
to la
te 2
008.
The
R
RA
M P
rogr
am C
ontro
l Boa
rd a
nd D
PI
man
agem
ent u
nder
took
an
exte
nsiv
e re
crui
tmen
t pro
cess
prio
r to
succ
essf
ully
en
gagi
ng a
sui
tabl
y ex
perie
nced
pr
ogra
m m
anag
er w
ho c
omm
ence
d w
ith
the
Dep
artm
ent o
n 20
Oct
ober
200
8.
011
.798
.7
Dep
artm
ent o
f Sus
tain
abili
ty a
nd E
nviro
nmen
t
Bus
hfi re
Rec
over
y 20
07-0
8 –
Stra
tegy
(S
tate
wid
e)
6.8
0.4
-94.
5Th
is p
rogr
am d
id n
ot h
ave
a si
gnifi
cant
un
ders
pend
as
the
maj
ority
of b
udge
ted
expe
nditu
re fo
r 200
8-09
was
inst
ead
spen
t as
outp
ut fu
ndin
g, in
clud
ing
repa
irs a
nd m
aint
enan
ce to
ass
ets
dam
aged
in th
e bu
shfi r
es.
1.7
11.9
28.6
Report on the 2008-09 Financial and Performance Outcomes
56
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Impr
ovin
g Vi
ctor
ia’s
N
atur
al T
ouris
m
Attr
actio
ns –
Nat
iona
l P
arks
Upg
rade
s (S
tate
wid
e)
5.0
3.3
-33.
9Th
is p
rogr
am d
id n
ot h
ave
a si
gnifi
cant
un
ders
pend
as
mos
t of t
he re
mai
nder
of
budg
eted
exp
endi
ture
for 2
008-
09 w
as
inst
ead
spen
t as
outp
ut fu
ndin
g.
1.8
11.1
42.0
Mel
bour
ne Z
oo S
eal
Poo
l Red
evel
opm
ent –
C
onst
ruct
ion
(Par
kvill
e)
7.0
5.9
-15.
1P
roje
ct d
ue to
be
com
plet
ed in
the
2009
-10 fi n
anci
al y
ear.
10.0
20.0
15.0
Nat
iona
l Wat
er In
itiat
ive
– M
acal
iste
r – C
onst
ruct
ion
(Boi
sdal
e)
1.3
0-1
00.0
The
Com
mon
wea
lth re
quire
d fu
rther
in
form
atio
n re
gard
ing
wat
er s
avin
gs p
rior
to a
ppro
val o
f the
mile
ston
e pa
ymen
t. S
outh
ern
Rur
al W
ater
Cor
pora
tion
prov
ided
the
addi
tiona
l inf
orm
atio
n in
20
09-1
0 an
d th
e m
ilest
one
paym
ent i
s no
w e
xpec
ted
to o
ccur
in M
arch
201
0.
The
proj
ect r
emai
ns o
n co
urse
to d
eliv
er
estim
ated
wat
er s
avin
gs o
f 15
giga
litre
s fo
r the
env
ironm
ent i
n th
e M
acal
iste
r an
d Th
omso
n riv
ers.
18.7
20.0
6.7
Sus
tain
able
Man
agem
ent
of V
icto
ria’s
Par
ks –
R
enew
(Sta
tew
ide)
8.4
5.1
-39.
7Th
is p
rogr
am d
id n
ot h
ave
a si
gnifi
cant
un
ders
pend
as
mos
t of t
he re
mai
nder
of
budg
eted
exp
endi
ture
for 2
008-
09 w
as
inst
ead
spen
t as
outp
ut fu
ndin
g.
31.4
55.2
27.8
57
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Sus
tain
able
Wat
er
Initi
ativ
es –
Mai
nten
ance
(S
tate
wid
e)
4.5
0-1
00.0
In 2
008-
09 th
is p
rogr
am w
as e
xpec
ted
to fu
nd w
orks
ass
ocia
ted
with
the
Wer
ribee
Vis
ion
Pro
ject
. App
rova
ls fo
r st
age
one
and
two
have
bee
n co
mpl
eted
w
ith th
e la
st fo
ur s
tage
s st
ill re
quiri
ng
appr
oval
prio
r to
the
allo
catio
n of
fu
ndin
g. F
undi
ng h
as b
een
carr
ied
over
in
to 2
009-
10 to
allo
w fo
r gai
ning
the
nece
ssar
y ap
prov
als.
018
.275
.1
Vict
oria
n W
ater
Tru
st
Ass
ets
– U
pgra
des
(var
ious
)
16.3
6.0
-63.
0Th
is fu
ndin
g w
as a
lloca
ted
to a
rang
e of
out
put i
nitia
tives
. In
addi
tion,
fund
ing
was
car
ried
over
into
200
9-10
for f
urth
er
deve
lopm
ent o
n bu
sine
ss c
ases
for
proj
ects
.
104.
215
2.6
8.4
Won
thag
gi D
esal
inat
ion
Pro
ject
30.0
00.
0Th
e D
esal
inat
ion
Pla
nt is
bei
ng
deliv
ered
thro
ugh
a P
ublic
Priv
ate
Par
tner
ship
.(d)
2.0
32.0
0.0
Dep
artm
ent o
f Tra
nspo
rt(c
)
Acc
essi
ble
Pub
lic
Tran
spor
t in
Vict
oria
: D
isab
ility
Dis
crim
inat
ion
Act
(DD
A) C
ompl
ianc
e fo
r Tra
in, T
ram
and
Bus
(s
tate
wid
e)
41.8
33.3
-20.
3R
efl e
cts
impa
ct o
f acc
eler
atio
n of
wor
ks
in 2
007-
08.
56.4
129.
230
.5
Report on the 2008-09 Financial and Performance Outcomes
58
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Bar
won
Hea
ds B
ridge
R
epla
cem
ent (
Bar
won
H
eads
)
13.9
2.8
-79.
9Fi
nalis
atio
n of
the
brid
ge d
esig
n w
as
dela
yed
by th
e he
ritag
e pe
rmit
appr
oval
pr
oces
s an
d ad
ditio
nal c
onsu
ltatio
n w
ith th
e co
mm
unity
ove
r the
des
ign.
Th
e de
sign
has
bee
n fi n
alis
ed, t
he
perm
it is
sued
and
the
cont
ract
aw
arde
d in
May
200
9.
3.2
22.3
73.1
Ber
wic
k C
ranb
ourn
e R
oad
Dup
licat
ion
(3km
– 5
km
) – P
ound
R
d to
Tho
mps
ons
Rd
(Cra
nbou
rne
Nor
th, C
lyde
N
orth
)
4.9
3.7
-24.
5P
roje
ct is
now
ope
n to
traffi c
.8.
715
.017
.3
Bre
akw
ater
Roa
d U
pgra
de (B
elm
ont,
Gee
long
)
10.0
1.9
-81.
0D
ue to
long
er th
an e
xpec
ted
plan
ning
sc
hem
e am
endm
ent a
ppro
vals
and
ad
ditio
nal c
onsu
ltatio
n on
pro
ject
s de
sign
with
affe
cted
land
owne
rs.
2.1
40.0
90.0
Cau
lfi el
d–D
ande
nong
R
ail C
orrid
or S
tage
Tw
o –
Wes
tall
Rai
l Upg
rade
(S
prin
gval
e)
19.6
6.8
-65.
3R
evis
ed c
ontra
ct a
ppro
val t
imel
ines
.0
151.
195
.4
Cau
lfi el
d–D
ande
nong
R
ail C
orrid
or –
Sta
ge O
ne
– C
ranb
ourn
e S
tabl
ing
and
Sta
tion
Upg
rade
(C
ranb
ourn
e)
25.0
21.5
-14.
0P
roje
ct c
ompl
eted
– fi
nal c
laim
s on
ly
rem
ain.
11.6
35.1
5.7
Con
gest
ion
Impr
ovem
ents
P
rogr
am (v
ario
us)
14.4
9.2
-36.
1D
eliv
ery
for s
ome
proj
ects
resc
hedu
led
due
to fi
nalis
atio
n of
sco
pe a
nd c
ounc
il ap
prov
als.
2.2
30.0
62.0
59
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Coo
laro
o S
tatio
n (C
oola
roo)
10.0
6.9
-31.
0Aw
ard
of m
ain
cont
ract
has
now
oc
curr
ed.
0.1
36.0
80.8
Cou
ntry
Rai
l Fre
ight
N
etw
ork
Mai
nten
ance
(n
on M
etro
var
ious
)’
23.7
18.6
-21.
5U
pgra
de o
f gol
d lin
es c
ompl
eted
. R
emai
ning
bud
get a
pplie
d to
the
upgr
ade
of s
ilver
line
s as
par
t of t
he
2009
-10
Bud
get.
023
.721
.5
Cra
igie
burn
Sta
tion
Trac
k U
pgra
de (C
raig
iebu
rn)
13.0
9.4
-27.
7R
efl e
cts
resc
hedu
ling
of a
ctiv
ities
to
2009
-10.
029
.868
.1
Cra
nbou
rne
Fran
ksto
n R
oad
Dup
licat
ion
(10.
2km
–11.
9km
) –
Cen
tre R
d to
Wes
tern
Por
t H
wy
(Lan
gwar
rin)
2.9
1.9
-34.
5P
roje
ct c
ompl
eted
ahe
ad o
f sch
edul
e.6.
811
.423
.7
Cra
nbou
rne
Fran
ksto
n R
oad
Dup
licat
ion
(Hal
l R
oad
and
the
Wes
tern
P
ort H
ighw
ay)
10.8
7.1
-34.
3M
inor
resc
hedu
ling.
2.3
30.0
68.7
Fern
tree
Gul
ly R
oad
Wid
enin
g –
Jells
Roa
d to
S
tud
Roa
d (S
core
sby)
24.4
12.6
-48.
4S
ervi
ce re
loca
tion
activ
ities
resc
hedu
led
follo
win
g th
e Fe
brua
ry 2
009
bush
fi re
s.5.
632
.042
.8
Gee
long
Rai
l Acc
ess
Impr
ovem
ent P
roje
ct
(Cor
io/N
orth
Gee
long
)
18.7
15.0
-19.
8M
ain
wor
ks c
ompl
eted
Dec
embe
r 200
8,
link
of C
orio
goo
ds li
ne w
ith w
harv
es
com
plet
ed J
une
2009
.
10.8
33.4
21.3
Gee
long
Rin
g R
oad
Sta
ge
4B (A
ngle
sea
Roa
d to
P
rince
s H
ighw
ay W
est,
City
of G
reat
er G
eelo
ng)
5.0
1.1
-78.
0R
esch
edul
ing
of s
ome
plan
ning
act
iviti
es
to 2
009-
10.
065
.098
.3
Report on the 2008-09 Financial and Performance Outcomes
60
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Geo
rge
Stre
et B
ridge
–
New
Brid
ge to
link
Geo
rge
Stre
et to
Brig
hton
Roa
d (D
ande
nong
)
6.0
3.1
-48.
3M
inor
resc
hedu
ling.
Con
tract
s no
w
awar
ded.
8.8
17.5
32.6
Lave
rton
Rai
l Upg
rade
(L
aver
ton)
23.1
16.9
-26.
8R
efl e
cts
resc
hedu
ling
of a
ctiv
ities
to
2009
-10.
092
.081
.6
Met
ropo
litan
Tra
in C
ontro
l R
elia
bilit
y (M
elbo
urne
)28
.415
.5-4
5.4
Res
ched
ule
of a
ctiv
ities
to 2
009-
10.
18.2
87.9
61.7
Met
ropo
litan
Tra
in S
afet
y C
omm
unic
atio
ns S
yste
m
(Met
ro v
ario
us)
48.3
23.6
-51.
1P
aym
ents
hav
e be
en re
-pha
sed
base
d on
con
tract
mile
ston
es.
12.5
134.
973
.2
Met
ropo
litan
Tra
in
Ser
vice
s (M
etro
var
ious
)12
3.5
105.
5-1
4.6
Min
or re
sche
dulin
g.32
.556
5.8
75.6
Mur
ray
Riv
er B
ridge
R
epla
cem
ents
–
Cro
ssin
gs (C
orow
a,
Ech
uca
and
Rob
inva
le)
3.0
0-1
00.0
Pro
ject
impa
cted
by
stak
ehol
der a
nd
plan
ning
issu
es re
latin
g to
brid
ge
alig
nmen
t.
015
.010
0.0
New
Tic
ketin
g S
olut
ion
– Te
chno
logy
and
In
stal
latio
n (S
tate
wid
e)
149.
981
.2-4
5.8
Refl
ect
s ch
ange
s to
pro
ject
sch
edul
ing
follo
win
g ro
llout
in re
gion
al V
icto
ria.
153.
346
0.9
44.0
Nor
th E
ast R
ail
Rev
italis
atio
n P
roje
ct
(var
ious
)
18.2
11.3
-37.
9R
esch
edul
ing
of w
orks
by
the
Aus
tralia
n R
ail T
rack
Cor
pora
tion
(AR
TC).
059
.881
.1
Nor
th M
elbo
urne
Sta
tion
Inte
rcha
nge
Upg
rade
(N
orth
Mel
bour
ne)
10.0
8.5
-15.
0R
esch
edul
e of
som
e w
orks
into
200
9-10
. P
roje
ct c
ompl
eted
Nov
embe
r 200
9.28
.638
.63.
9
61
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Prin
ces
Hig
hway
Wes
t –
Sta
ge 1
(Wau
rn P
onds
to
Win
chel
sea,
City
of
Gre
ater
Gee
long
, G
eelo
ng)
5.0
0.2
-96.
0R
esch
edul
ing
of s
ome
plan
ning
and
de
velo
pmen
t act
iviti
es to
200
9-10
.0
110.
099
.8
Reg
iona
l Arte
rial R
oad
and
Brid
ge L
inks
(non
-M
etro
var
ious
)
1.9
1.6
-15.
8R
esch
edul
ing
of p
lann
ing
activ
ities
for
the
Ech
uca–
Moa
ma
Brid
ge p
roje
ct.
8.6
41.9
8.1
Sm
artB
us: G
reen
Orb
ital
– N
unaw
adin
g to
Airp
ort
Wes
t (M
etro
var
ious
)
13.6
9.5
-30.
1R
esch
edul
ing
of a
ctiv
ities
to 2
009-
10.
1.8
29.3
61.8
Tayl
ors
Roa
d (1
5.2k
m to
15
.8km
) – B
ypas
s/N
ew
Roa
d –
Syd
enha
m R
d to
E
ast E
spla
nade
– G
rade
S
epar
atio
n (S
t Alb
ans)
8.1
4.7
-42.
0P
roje
ct c
ompl
eted
Nov
embe
r 200
8.37
.354
.022
.2
Tram
and
Bus
Prio
rity
Pro
gram
(Met
ro v
ario
us)
6.0
3.8
-36.
7M
inor
resc
hedu
ling.
036
.289
.5
Vigi
lanc
e C
ontro
l and
E
vent
Rec
ordi
ng S
yste
m
(VIC
ER
S) o
n M
etro
polit
an
Trai
ns (M
etro
var
ious
)
20.0
6.6
-67.
0R
esch
edul
ing
to a
lign
with
trai
n av
aila
bilit
y.14
.337
.343
.7
Wes
tern
Por
t Hig
hway
D
uplic
atio
n (0
km–4
km)
Cra
nbou
rne
Fran
ksto
n R
d to
Nor
th R
d (L
angw
arrin
, C
ranb
ourn
e S
outh
)
18.7
9.7
-48.
1P
roje
ct c
ompl
eted
.17
.936
.825
.0
Report on the 2008-09 Financial and Performance Outcomes
62
Notes:
(a) TEIs for the Department of Human Services are revised rather than original fi gures.
(b) Figure reported as 0 by the Department – this fi gure comes from Department of Treasury and Finance, Budget Information Paper No. 1 – Public Sector Asset Investment Program 2008-09, pp. 40–1; explanation for variance from Department’s response to questionnaire part 2, question 2.1(h).
(c) TEIs for the Department of Justice and the Department of Transport are as published in the 2008-09 Budget Information Paper No. 1.
(d) Information supplied by the Committee.
Source: Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two, except where noted
3.3.2 Major infrastructure projects with actual expenditure higher than estimated in 2008-09
There were 39 projects (20 per cent) in 2008-09 in which departments spent in excess of 10 per cent more than had been estimated (see Table 3.2). Together they amounted to $190.8 million more being spent than budgeted.47 Table 3.6 provides a summary by department. Table 3.7 provides detailed explanations by department for these variances.
The main reason given for over-expenditure was projects proceeding ahead of schedule, with 72 per cent of project over-expenditures attributed to this cause (see Table 3.6). In many cases, favourable building conditions were cited as the reason. In some cases this meant that projects’ end-dates could be brought forward, but in many instances the end-date remained unchanged.
Table 3.6: Major infr astructure projects with variances in over-expenditure greater than 10 per cent, by department
Department
Projects proceeding
ahead of schedule
Other reasons for higher
expenditureTotal
Education and Early Childhood Development 4 3 7
Human Services 16 0 16
Innovation, Industry and Regional Development 2 0 2
Justice 2 1 3
Planning and Community Development 0 0 0
Premier and Cabinet 0 0 0
Primary Industries 0 0 0
Sustainability and Environment 0 0 0
Transport 4 7 11
Treasury and Finance 0 0 0
Total (No.) 28 11 39
Total (%) 71.8 28.2 100
Source: Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two
47 An additional $16.4 million more than budgeted was spent on projects which over-spent by less than 10 per cent.
63
Chapter 3: Public Sector Infrastructure and Asset Investment
Other reasons provided for higher-than-estimated expenditure included:
under-expenditure in 2007-08 leading to funds being carried forward to 2008-09 and spent then;
unanticipated needs to remove high-risk site contaminants from construction sites;
alterations to the schedule or milestones leading to adjusted cash fl ows;
additional design and investigation activities being required; and
land acquisition costing more than originally estimated.
Report on the 2008-09 Financial and Performance Outcomes
64
Tabl
e 3.
7:
Maj
or in
fras
truc
ture
pro
ject
s w
ith a
ctua
l exp
endi
ture
hig
her t
han
estim
ated
in 2
008-
09
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Dep
artm
ent o
f Edu
catio
n an
d Ea
rly C
hild
hood
Dev
elop
men
t
Ben
digo
Edu
catio
n P
lan
– Fl
ora
Hill
– F
lora
Hill
and
G
olde
n S
quar
e S
econ
dary
C
olle
ge (F
lora
Hill
)
2.8
5.3
90.5
Varia
nce
is d
ue to
tend
erin
g an
d co
nstru
ctio
n w
ork
proc
eedi
ng a
head
of
sche
dule
.
0.0
10.0
46.5
Bro
adm
eado
ws
Reg
ener
atio
n –
Hum
e S
enio
r Cam
pus
– B
road
mea
dow
s S
econ
dary
C
olle
ge, H
illcr
est
Sec
onda
ry C
olle
ge,
Erin
bank
Sec
onda
ry
Col
lege
– S
tage
1
(Wes
tmea
dow
s)
1.1
2.6
133.
2Va
rianc
e is
due
to c
onst
ruct
ion
wor
k pr
ocee
ding
ahe
ad o
f sch
edul
e.
0.0
12.0
78.1
Mar
ibyr
nong
Sec
onda
ry
Col
lege
– S
ports
Sch
ool a
t M
arib
yrno
ng (M
arib
yrno
ng)
4.8
9.6
99.1
The
cons
truct
ion
timel
ine
was
am
ende
d du
e to
late
nt s
ite c
ondi
tions
. The
app
rove
d TE
I is
now
$ 1
4.67
4M. T
he T
EI i
ncre
ase
and
expe
nditu
re v
aria
nce
are
both
due
to
cost
s as
soci
ated
with
rem
oval
of h
igh-
risk
site
con
tam
inan
ts.
The
TEI i
ncre
ase
($4.
674M
) was
abl
e to
be
fund
ed fr
om s
avin
gs fr
om o
ther
pro
ject
s
2.2
10.0
-18.
4
Rel
ocat
able
Cla
ssro
om
Ren
ewal
(var
ious
)4.
24.
610
.2–
0.0
26.0
82.2
Tech
nica
l Win
gs a
nd T
rade
E
quip
men
t for
Gov
ernm
ent
Sch
ools
– (v
ario
us)
1.0
1.2
16.7
Varia
nce
is d
ue to
con
stru
ctio
n w
ork
proc
eedi
ng a
head
of s
ched
ule.
15
.050
.067
.7
65
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Ultr
anet
(var
ious
sch
ools
)11
.013
.421
.9Fo
llow
ing
the
com
plet
ion
of n
egot
iatio
ns,
a co
ntra
ct w
as s
igne
d in
Jun
e 20
09 a
nd
paym
ents
mad
e in
acc
orda
nce
with
the
term
s of
the
cont
ract
.Th
e B
IP 1
200
8-09
est
imat
e w
as
supp
lem
ente
d by
a c
arry
forw
ard
of fu
nds
from
200
7-08
.
3.4
60.5
72.2
Vict
oria
n C
olle
ge o
f the
A
rts S
econ
dary
Sch
ool
(VC
AS
S) a
nd O
ther
P
roje
cts
– R
epla
cem
ent
Sch
ool (
Sou
thba
nk)
11.3
12.9
14.8
Varia
nce
is d
ue to
con
stru
ctio
n w
ork
proc
eedi
ng a
head
of s
ched
ule.
5.
320
.09.
0
Dep
artm
ent o
f Hum
an S
ervi
ces(a
)
Box
Hill
Hos
pita
l O
utpa
tient
s an
d D
ialy
sis
Cen
tre a
nd A
ssoc
iate
d W
orks
(Box
Hill
)
1.5
2.0
34.4
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
com
plet
ed in
Jun
e 20
08 a
ccor
ding
to
sch
edul
e. M
ajor
pla
nnin
g w
ork
to
be u
nder
take
n as
par
t of t
he o
vera
ll re
deve
lopm
ent o
f the
site
. Ant
icip
ated
to
be c
ompl
eted
by
Mar
ch 2
010.
35.8
38.2
1.2
Cau
lfi el
d G
ener
al M
edic
al
Cen
tre L
ogis
tics
Bui
ldin
g an
d A
ssoc
iate
d W
orks
(C
aulfi
eld)
1.4
1.6
14.9
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
to s
ched
ule,
w
ith th
e pr
ojec
t end
-dat
e re
mai
ning
un
chan
ged.
20.9
23.5
4.0
Report on the 2008-09 Financial and Performance Outcomes
66
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Cau
lfi el
d G
ener
al M
edic
al
Cen
tre R
edev
elop
men
t S
tage
2 (C
aulfi
eld)
5.0
7.7
53.1
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
to s
ched
ule,
w
ith th
e pr
ojec
t end
-dat
e re
mai
ning
un
chan
ged.
1.7
28.0
66.8
Dan
deno
ng H
ospi
tal
Em
erge
ncy
Dep
artm
ent
Red
evel
opm
ent
(Dan
deno
ng)
0.9
1.8
99.0
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
to s
ched
ule,
w
ith th
e pr
ojec
t end
-dat
e re
mai
ning
un
chan
ged.
0.0
25.0
92.8
Fran
ksto
n H
ospi
tal S
tage
2
(Ope
ratin
g Th
eatre
E
xpan
sion
and
Crit
ical
C
are
Red
evel
opm
ent)
(Fra
nkst
on)
11.0
13.9
26.3
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
ahe
ad o
f sch
edul
e.
Pro
ject
ant
icip
ated
to b
e co
mpl
eted
by
Sep
tem
ber 2
010.
6.7
45.0
54.3
Kin
gsto
n C
entre
Kitc
hen
Upg
rade
and
Ass
ocia
ted
Wor
ks (H
eath
erto
n)
8.0
14.0
74.7
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
to s
ched
ule,
w
ith th
e pr
ojec
t end
-dat
e re
mai
ning
un
chan
ged.
11.5
32.8
22.4
Kin
gsto
n C
entre
R
edev
elop
men
t – S
tage
2
(Che
ltenh
am)
2.2
2.7
24.6
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
to s
ched
ule,
w
ith th
e pr
ojec
t end
-dat
e re
mai
ning
un
chan
ged.
0.0
45.0
94.0
67
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Latro
be C
omm
unity
H
ealth
Ser
vice
– M
orw
ell
Red
evel
opm
ent (
Mor
wel
l)
2.0
6.7
237.
4Fa
vour
able
bui
ldin
g co
nditi
ons
allo
wed
ea
rly w
orks
to b
e ac
cele
rate
d fo
r ini
tial
stag
es o
f con
stru
ctio
n. M
ain
cons
truct
ion
wor
ks a
re p
rogr
essi
ng to
sch
edul
e,
with
the
proj
ect e
nd-d
ate
rem
aini
ng
unch
ange
d.
0.0
21.0
67.9
Nat
halia
Dis
trict
H
ospi
tal a
nd A
ged
Car
e R
edev
elop
men
t (N
atha
lia)
7.0
7.8
11.1
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Con
stru
ctio
n w
orks
co
mpl
eted
in D
ecem
ber 2
009,
ahe
ad o
f sc
hedu
le. P
roje
ct in
fi na
ncia
l com
plet
ion
phas
e.
2.4
18.0
43.6
Nor
ther
n H
ospi
tal –
M
enta
l Hea
lth E
xpan
sion
an
d S
hort
Sta
y U
nit
Con
stru
ctio
n (E
ppin
g)
4.1
9.4
128.
4Fa
vour
able
bui
ldin
g co
nditi
ons
allo
wed
ea
rly w
orks
to b
e ac
cele
rate
d fo
r ini
tial
stag
es o
f con
stru
ctio
n. M
ain
cons
truct
ion
wor
ks a
re p
rogr
essi
ng to
sch
edul
e,
with
the
proj
ect e
nd-d
ate
rem
aini
ng
unch
ange
d.
1.5
27.9
61.0
Oliv
ia N
ewto
n-Jo
hn C
ance
r C
entre
(Hei
delb
erg)
5.
06.
122
.5Fa
vour
able
bui
ldin
g co
nditi
ons
allo
wed
ea
rly w
orks
to b
e ac
cele
rate
d fo
r ini
tial
stag
es o
f con
stru
ctio
n. M
ain
cons
truct
ion
wor
ks a
re p
rogr
essi
ng to
sch
edul
e,
with
the
proj
ect e
nd-d
ate
rem
aini
ng
unch
ange
d.
0.0
25.0
75.5
Pen
insu
la C
omm
unity
H
ealth
Ser
vice
R
edev
elop
men
t (H
astin
gs)
6.0
7.8
30.3
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
The
faci
lity
was
offi c
ially
ope
ned
in S
epte
mbe
r 200
9,
ahea
d of
sch
edul
e. P
roje
ct in
fi na
ncia
l co
mpl
etio
n ph
ase.
3.2
13.0
15.2
Report on the 2008-09 Financial and Performance Outcomes
68
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Roy
al M
elbo
urne
Hos
pita
l E
mer
genc
y D
epar
tmen
t R
edev
elop
men
t (P
arkv
ille)
23.8
26.6
11.7
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
All
cons
truct
ion
wor
ks c
ompl
ete
with
the
faci
lity
offi c
ially
op
ened
in O
ctob
er 2
009.
Pro
ject
is in
fi n
anci
al c
ompl
etio
n ph
ase.
25.5
54.7
4.7
Sta
wel
l Hea
lth a
nd
Com
mun
ity C
entre
R
edev
elop
men
t (S
taw
ell)
10.0
12.9
28.6
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed
early
wor
ks to
be
acce
lera
ted
for i
nitia
l st
ages
of c
onst
ruct
ion.
Mai
n co
nstru
ctio
n w
orks
are
pro
gres
sing
to re
vise
d sc
hedu
le.
2.6
20.0
22.8
Sun
bury
Day
Hos
pita
l (S
unbu
ry)
1.0
2.4
142.
7O
rigin
al c
ash fl o
ws
for t
he p
roje
ct w
ere
cons
erva
tivel
y ba
sed
for e
arly
sta
ges.
M
ain
cons
truct
ion
wor
ks a
re p
rogr
essi
ng
to s
ched
ule,
with
the
proj
ect e
nd-d
ate
rem
aini
ng u
ncha
nged
.
0.0
14.0
82.7
Wes
tern
Hos
pita
l R
edev
elop
men
t Sta
ge 1
(F
oots
cray
)
3.1
16.4
437.
7A
ccel
erat
ed c
ash fl o
w d
ue to
con
stru
ctio
n w
orks
on
prio
rity
infra
stru
ctur
e up
grad
es
adva
ncin
g ah
ead
of s
ched
ule.
Pro
activ
e m
anag
emen
t allo
wed
phy
sica
l wor
ks to
co
mm
ence
ear
lier.
Pro
ject
is p
rogr
essi
ng
to s
ched
ule
with
the
proj
ect e
nd-d
ate
rem
aini
ng u
ncha
nged
.
4.0
24.8
17.4
Dep
artm
ent o
f Inn
ovat
ion,
Indu
stry
and
Reg
iona
l Dev
elop
men
t
Ben
digo
Inst
itute
of T
AFE
–
Cha
rlest
on R
oad
Cam
pus
rede
velo
pmen
t (B
endi
go)
0.8
0.9
11.5
Varia
nce
as a
resu
lt of
the
proj
ect b
eing
sl
ight
ly a
head
of s
ched
ule.
0.
011
.091
.1
69
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Sou
th W
est I
nstit
ute
of
TAFE
– W
arrn
ambo
ol
Sta
ge 3
rede
velo
pmen
t (S
tate
fund
ed c
ompo
nent
)
2.5
8.7
247.
3Th
e 20
08-0
9 es
timat
ed e
xpen
ditu
re
did
not i
nclu
de a
ny u
nspe
nt c
arry
over
fro
m 2
007-
08. T
he p
roje
ct e
xper
ienc
ed
sign
ifi ca
nt d
elay
s du
ring
2007
-08
whi
ch
resu
lted
in a
sig
nifi c
ant u
nder
spen
d. T
he
budg
et w
as s
ubse
quen
tly re
phas
ed to
in
corp
orat
e a
revi
sed
budg
et fo
r 200
8-09
of
$7.
37 m
illio
n. O
ver e
xpen
ditu
re re
sulte
d fro
m th
e pr
ojec
t bei
ng a
head
of t
he re
vise
d sc
hedu
le.
1.1
11.0
10.8
Dep
artm
ent o
f Jus
tice(b
)
Bru
nsw
ick
and
Col
lingw
ood
Pol
ice
Com
plex
es –
U
pgra
des
(Bru
nsw
ick
and
Col
lingw
ood)
2.6
3.8
44.1
Pro
ject
incu
rred
add
ition
al c
osts
as
a re
sult
of id
entifi
cat
ion
and
disp
osal
of
haza
rdou
s m
ater
ials
(asb
esto
s) a
nd
conc
eale
d re
dund
ant p
lant
and
equ
ipm
ent.
4.9
12.2
0.0
Org
anis
ed C
rime
and
Cou
nter
Ter
roris
m –
Ass
et
Enh
ance
men
t (S
tate
wid
e)
0.2
2.2
1225
.6A
lthou
gh o
vera
ll pr
ojec
t was
del
iver
ed
behi
nd s
ched
ule,
the
annu
al 2
008-
09
proj
ect s
ched
ule
was
acc
eler
ated
, re
sulti
ng in
the
2008
-09
over
spen
d va
rianc
e. T
he T
EI f
or th
is p
roje
ct w
as
revi
sed
to $
17.2
88m
as
part
of th
e m
id-y
ear b
udge
t upd
ate.
14.3
15.4
0.0
Pol
ice
Sta
tions
Prio
rity
Upg
rade
Pro
gram
– A
sset
E
nhan
cem
ent (
Sta
tew
ide)
2.0
3.4
71.6
Pro
ject
sch
edul
e w
as a
ccel
erat
ed. T
his
has
not a
ffect
ed th
e co
mpl
etio
n da
te.
0.0
10.0
65.7
Dep
artm
ent o
f Tra
nspo
rt(b
)
Bas
s H
ighw
ay D
uplic
atio
n –
Sta
ge 1
Kin
g R
oad
to
Woo
lmer
Roa
d (B
ass,
A
nder
son)
9.0
10.6
17.8
Min
or re
sche
dulin
g.6.
027
.138
.4
Report on the 2008-09 Financial and Performance Outcomes
70
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Bas
s H
ighw
ay D
uplic
atio
n S
tage
5 –
Gra
ntvi
lle to
Kin
g R
oad
(Gra
ntvi
lle)
2.7
6.3
133.
3P
roje
ct c
ompl
eted
.17
.223
.60.
0
Cal
der H
ighw
ay U
pgra
de18
.326
.243
.2R
esch
edul
ing
of la
nd s
ales
to 2
009/
10.
246.
230
6.2
1.0
Dyn
on P
ort R
ail L
ink
(Mel
bour
ne)
34.5
40.2
16.5
Pro
ject
com
plet
ed J
uly
2009
.83
.812
5.1
0.0
Nep
ean
Hw
y B
ridge
R
epla
cem
ent–
Mor
dial
loc
Cre
ek (K
ings
ton
City
)
3.2
3.7
15.6
Acc
eler
atio
n of
wor
ks d
urin
g 20
08-0
9.6.
510
.20.
0
Pou
nd R
oad
– S
outh
G
ipps
land
Hig
hway
–
Sou
th G
ipps
land
Fre
eway
In
ters
ectio
n U
pgra
de
(Dan
deno
ng)
1.3
1.6
23.1
Add
ition
al d
esig
n an
d in
vest
igat
ion
activ
ities
wer
e un
derta
ken.
0.0
36.8
95.7
Reg
iona
l Rol
lings
tock
(n
on-M
etro
var
ious
)23
.827
.415
.1P
aym
ents
hav
e be
en re
phas
ed b
ased
on
cont
ract
mile
ston
es.
55.2
100.
217
.5
Saf
er R
oad
Infra
stru
ctur
e P
rogr
am 3
(var
ious
)80
.010
1.9
27.4
Ahe
ad o
f bud
get d
urin
g 20
08-0
9 as
a
resu
lt of
the
acce
lera
tion
of w
orks
.55
.072
2.2
78.3
Wes
t Gat
e –
Mon
ash
Free
way
s Im
prov
emen
t P
acka
ge (M
etro
var
ious
)
360.
241
1.1
14.1
Ahe
ad o
f bud
get d
urin
g 20
08-0
9 as
a
resu
lt of
the
acce
lera
tion
of w
orks
.16
0.8
1100
.048
.0
Wes
tern
Hig
hway
R
ealig
nmen
t – A
ntho
ny’s
C
uttin
g (M
elto
n to
Bac
chus
M
arsh
)
5.0
7.7
54.0
Land
acq
uisi
tion
slig
htly
hig
her t
han
estim
ated
.0.
040
.080
.8
71
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
BIP
No
1 B
udge
t 20
08-0
9 es
timat
ed
expe
nditu
re
2008
-09
Act
ual
expe
nditu
re
Varia
nce
Expl
anat
ion
for v
aria
nce
Expe
nditu
re
2005
-06
to
2007
-08
Tota
l Es
timat
ed
Inve
stm
ent
Rem
aini
ng
expe
nditu
re
($ m
illio
n)($
mill
ion)
(%)
($ m
illio
n)
($ m
illio
n)(%
)
Wes
tern
Hig
hway
: Dee
r P
ark
Byp
ass
and
Leak
es
Roa
d In
terc
hang
e U
pgra
de
(Dee
r Par
k)
95.1
114.
920
.8P
roje
ct c
ompl
eted
Apr
il 20
09 a
head
of
sche
dule
.23
1.6
331.
00.
0
Not
es: (a
) TE
Is fo
r the
Dep
artm
ent o
f Hum
an S
ervi
ces
are
revi
sed
rath
er th
an o
rigin
al fi
gure
s
(b)
TEIs
for t
he D
epar
tmen
t of J
ustic
e an
d th
e D
epar
tmen
t of T
rans
port
are
as p
ublis
hed
in th
e 20
08-0
9 B
udge
t Inf
orm
atio
n P
aper
No.
1
Sou
rce:
D
epar
tmen
tal r
espo
nses
to th
e C
omm
ittee
’s 2
008-
09 F
inan
cial
and
Per
form
ance
Out
com
es Q
uest
ionn
aire
– P
art T
wo
and
clar
ifi ca
tion
ques
tions
Report on the 2008-09 Financial and Performance Outcomes
72
3.4. Major i nfrastructure projects with revised completion dates
The Committee sought information from departments regarding infrastructure projects with TEIs in excess of $10 million and budgeted expenditure in 2008-09 which had revised completion dates. In total, there were 94 projects with revised completion dates. Completion dates were brought forward in 24 cases (26 per cent) and postponed in 70 cases (74 per cent). A breakdown by department can be seen in Table 3.8.
Table 3.8: Major infrastructure projects’ completion dates compared to original estimates (summary)
Department Total projects
Brought forward
On time Delayed
(No.) (%) (%) (%)
Education and Early Childhood Development(a) 22 0.0 50.0 45.5
Human Services 52 17.3 53.8 28.8
Innovation, Industry and Regional Development 12 0.0 25.0 75.0
Justice 22 4.5 45.5 50.0
Planning and Community Development 3 0.0 33.3 66.7
Premier and Cabinet 2 0.0 50.0 50.0
Primary Industries 1 0.0 100.0 0.0
Sustainability and Environment 19 26.3 73.7 0.0
Transport 61 14.8 49.2 36.1
Treasury and Finance 0 0.0 1.0 2.0
Total 194 12.4 51.0 36.1
Note: (a) Details of the expected completion date for one project were not supplied.
Source: Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two
The Committee asked departments to provide the reasons for the revised end-dates and these have been presented in Table 3.9 and Table 3.10.
The Committee notes that most departments provided limited meaningful information regarding why works were accelerated.
A range of explanations was provided for those projects that were delayed. In a number of cases, the cause of delays was beyond the control of the project. Issues such as the discovery of asbestos and soil contamination delayed some building projects. Some road works were delayed by adverse weather conditions. In other cases, delays were caused by timber that had been thought to be reusable proving not to be and the discovery of the remains of an early courthouse requiring an archaeological survey.
Delays were also caused by agencies which were beyond the State Government’s control, such as other agencies undertaking projects on adjacent or connected sites, delays to funding from the Commonwealth Government and private companies being placed into administration. Similarly, delays to council approvals, a university taking longer than expected to fi nalise a project’s scope and objections being taken to the Victorian Civil and Administrative Tribunal may also have been beyond the control of the departments.
73
Chapter 3: Public Sector Infrastructure and Asset Investment
The Committee also notes, however, that a number of the explanations provided by departments suggest issues with planning processes on the departments’ part. These included:
fi nalisation of tender documents taking longer than expected;
redesigns of projects and revisions of project scope; and
projects having to be revised because tenders exceeded project budgets.
The Committee notes that in some cases, these issues caused signifi cant delays, with a number of projects experiencing delays of one to two years for these reasons.
In addition, whilst delays connected with getting other agencies on board and due to town planning issues may in some cases be beyond government departments’ control, in other cases such matters may be refl ective of poor planning or poor project execution by departments. A number of these delays also resulted in the postponement of project completion dates by one to two years.
Almost 63 per cent of projects with delays also had under-spends on their 2008-09 budgets (see Table 3.3), highlighting the inter-connectedness of timeliness and budgets. The Committee notes that there are times when unforeseeable events occur which can delay projects. However, it would appear that there is scope for improvement in departments’ project planning processes to reduce the number of delays.
The Committee also enquired specifi cally about projects for which departments had reported revised completion dates to the Committee in 2007-08.48 Of the 37 projects that continued into 2008-09 where completion dates had previously been revised, approximately half were revised again in 2008-09. Six projects (16 per cent) had completion dates brought forward and 13 projects (35 per cent) had the completion dates further postponed.49
The explanations for these revisions were similar to those generally provided for project delays, primarily adjustments to project scope and site contamination. Delays associated with fi nalising agency participation and contractors being unable to start when originally planned also contributed.50
As with the delays in general, some of these factors are unforeseeable, but some may be avoidable with improved project planning processes. This further emphasises the importance of departments having access to expert guidance both at project initiation and throughout the management of projects, as discussed further in Section 3.5.
48 See Public Accounts and Estimates Committee, Report on the 2007-08 Financial and Performance Outcomes, May 2009, pp.97–101
49 Departmental responses to the Committee’s 2008-09 Financial and Performance Outcomes Questionnaire – Part Two
50 ibid.
Report on the 2008-09 Financial and Performance Outcomes
74
Tabl
e 3.
9:
Maj
or in
fras
tr uc
ture
pro
ject
s w
ith c
ompl
etio
n da
tes
brou
ght f
orw
ard
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te
(if a
pplic
able
)
Expl
anat
ion
for r
evis
ion
Dep
artm
ent o
f Hum
an S
ervi
ces
Nor
ther
n H
ospi
tal R
edev
elop
men
t Sta
ge
2a (E
ppin
g)Ju
l-07
Apr
-07
Con
stru
ctio
n co
mpl
ete
and
oper
atio
nal.
Pro
ject
is in
fi na
ncia
l com
plet
ion
phas
e.
Gro
veda
le A
ged
Car
e Fa
cilit
y D
evel
opm
ent (
Gro
veda
le)
Jun-
08M
ay-0
8C
onst
ruct
ion
com
plet
e. P
roje
ct is
in fi
nanc
ial c
ompl
etio
n ph
ase.
Leon
gath
a H
ospi
tal C
ampu
s S
tage
1
Res
iden
tial A
ged
Car
e (L
eong
atha
)Fe
b-10
Apr
-09
All
cons
truct
ion
wor
ks c
ompl
ete
ahea
d of
orig
inal
tim
elin
es. P
roje
ct in
fi na
ncia
l com
plet
ion
phas
e.
Alfr
ed C
entre
Sta
ge 2
(Pra
hran
)Ju
n-10
Jun-
09Fi
rst s
tage
of c
onst
ruct
ion
prog
ress
ed a
head
of s
ched
ule.
Pro
ject
com
plet
ed a
head
of
orig
inal
tim
elin
es.
Pen
insu
la C
omm
unity
Hea
lth S
ervi
ce
Red
evel
opm
ent (
Has
tings
)A
pr-1
0O
ct-0
9Fa
vour
able
bui
ldin
g co
nditi
ons
allo
wed
ear
ly w
orks
to b
e ac
cele
rate
d fo
r ini
tial s
tage
s of
co
nstru
ctio
n. T
he fa
cilit
y w
as o
ffi ci
ally
ope
ned
in S
epte
mbe
r 200
9, a
head
of s
ched
ule.
P
roje
ct in
fi na
ncia
l com
plet
ion
phas
e.
Roy
al M
elbo
urne
Hos
pita
l Em
erge
ncy
Dep
artm
ent R
edev
elop
men
t (P
arkv
ille)
Dec
-09
Oct
-09
Favo
urab
le b
uild
ing
cond
ition
s al
low
ed e
arly
wor
ks to
be
acce
lera
ted
for i
nitia
l sta
ges
of
cons
truct
ion.
All
cons
truct
ion
wor
ks c
ompl
eted
ahe
ad o
f sch
edul
e, w
ith th
e fa
cilit
y offi c
ially
op
ened
in O
ctob
er 2
009.
Pro
ject
is in
fi na
ncia
l com
plet
ion
phas
e.
Nat
halia
Dis
trict
Hos
pita
l and
Age
d C
are
Red
evel
opm
ent (
Nat
halia
)M
ar-1
0D
ec-0
9Fa
vour
able
bui
ldin
g co
nditi
ons
allo
wed
ear
ly w
orks
to b
e ac
cele
rate
d fo
r ini
tial s
tage
s of
co
nstru
ctio
n. A
ll co
nstru
ctio
n w
orks
com
plet
ed a
head
of s
ched
ule,
with
the
faci
lity
offi c
ially
op
ened
in O
ctob
er 2
009.
Pro
ject
is in
fi na
ncia
l com
plet
ion
phas
e.
Pla
cem
ent a
nd S
uppo
rt R
esid
entia
l Fa
cilit
y R
enew
al S
trate
gy –
Sta
ge 6
(S
tate
wid
e)
Mar
-11
Mar
-10
Ele
ven
of th
e pl
anne
d fo
urte
en h
ouse
s ar
e co
mpl
eted
and
occ
upie
d. R
emai
ning
hou
ses
sche
dule
d to
be
com
plet
ed in
Mar
ch 2
010.
Thi
s pr
ojec
t was
com
plet
ed a
head
of t
he o
rigin
al
fore
cast
com
plet
ion
date
due
to fa
vour
able
bui
ldin
g co
nditi
ons.
Fran
ksto
n H
ospi
tal S
tage
2 (O
pera
ting
Thea
tre E
xpan
sion
and
Crit
ical
Car
e R
edev
elop
men
t) (F
rank
ston
)
Feb-
11S
ep-1
0M
ain
cons
truct
ion
wor
ks a
re p
rogr
essi
ng a
head
of s
ched
ule,
for c
ompl
etio
n by
Sep
tem
ber 2
010.
Dep
artm
ent o
f Sus
tain
abili
ty a
nd E
nviro
nmen
t
Mel
bour
ne Z
oo S
eal P
ool R
edev
elop
men
t - C
onst
ruct
ion
(Par
kvill
e)Ju
n-10
Dec
-09
The
proj
ect w
as c
ompl
eted
ahe
ad o
f sch
edul
e du
e to
the
Zoo
usin
g its
inte
rnal
labo
ur to
fa
st tr
ack
the
land
scap
ing
and
inte
rpre
tatio
n w
ork.
In a
dditi
on, t
he s
eals
and
pen
guin
s se
ttled
wel
l int
o th
e ne
w fa
cilit
y an
d th
eref
ore
the
exhi
bit c
ould
ope
n ah
ead
of s
ched
ule.
75
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te
(if a
pplic
able
)
Expl
anat
ion
for r
evis
ion
Nat
iona
l Wat
er In
itiat
ive
- Mac
alis
ter -
C
onst
ruct
ion
(Boi
sdal
e)E
nd o
f 201
1D
ec-1
0Th
e C
omm
onw
ealth
and
Sta
te a
gree
d to
pro
vide
fund
ing
to e
nabl
e ac
cele
rate
d m
ilest
ones
.
Sus
tain
able
Wat
er In
itiat
ives
- M
aint
enan
ce (S
tate
wid
e)Ju
n-12
Jun-
11Th
e tim
ing
of a
vaila
ble
fund
ing
will
allo
w th
e w
orks
to b
e co
mpl
eted
by
June
201
1.
Wim
mer
a-M
alle
e P
ipel
ine
Pro
ject
- S
tate
C
ompo
nent
- C
onst
ruct
ion
(Mal
lee/
Wim
mer
a)Ju
n-15
Apr
-10
The
Com
mon
wea
lth a
nd S
tate
bro
ught
forw
ard
fund
ing
so th
e pr
ojec
t cou
ld b
e ac
cele
rate
d in
reco
gniti
on o
f the
unp
rece
dent
ed d
roug
ht a
nd th
e ur
gent
nee
d to
sec
ure
wat
er s
uppl
y fo
r th
e W
imm
era-
Mal
lee
regi
on.
Wim
mer
a-M
alle
e P
ipel
ine
Pro
ject
- C
omm
onw
ealth
Com
pone
nt -
Con
stru
ctio
n (M
alle
e/W
imm
era)
Jun-
15A
pr-1
0
The
Com
mon
wea
lth a
nd S
tate
bro
ught
forw
ard
fund
ing
earli
er s
o th
e pr
ojec
t cou
ld b
e ac
cele
rate
d in
reco
gniti
on o
f the
unp
rece
dent
ed d
roug
ht a
nd th
e ur
gent
nee
d to
sec
ure
wat
er s
uppl
y fo
r the
Wim
mer
a-M
alle
e re
gion
Dep
artm
ent o
f Tra
nspo
rt
Cau
lfi el
d–D
ande
nong
Rai
l Cor
ridor
–
Sta
ge O
ne –
Cra
nbou
rne
Sta
blin
g an
d S
tatio
n U
pgra
de (C
ranb
ourn
e)
Jun-
09La
te 2
008
Pro
ject
acc
eler
ated
and
com
plet
ed a
head
of s
ched
ule.
Cra
nbou
rne
Fran
ksto
n R
oad
Dup
licat
ion
(10.
2km
–11.
9km
) – C
entre
Rd
to W
este
rn
Por
t Hw
y (L
angw
arrin
)
Feb-
09La
te 2
008
Pro
ject
com
plet
ed.
Der
rimut
Roa
d D
uplic
atio
n (3
.5km
–5.
12km
) – H
ogan
s R
d to
Say
ers
Rd
(Hop
pers
Cro
ssin
g)
Mar
-09
Late
200
8P
roje
ct a
ccel
erat
ed a
nd c
ompl
eted
ahe
ad o
f sch
edul
e.
Dup
licat
ion
of T
hom
pson
Roa
d –
Cra
nbou
rne
Dec
-09
Mid
200
9R
oad
open
ed m
id 2
009.
Gee
long
Rin
g R
oad
– B
ypas
s/N
ew R
oad
(Gee
long
)D
ec-0
9M
id 2
009
Pro
ject
com
plet
ed.
Hum
e H
ighw
ay –
Don
nybr
ook
Roa
d In
terc
hang
e –
Gra
de S
epar
atio
n (B
ever
idge
, Cra
igie
burn
)
Jun-
09E
arly
200
9P
roje
ct c
ompl
eted
.
Nor
th M
elbo
urne
Sta
tion
Inte
rcha
nge
Upg
rade
(Nor
th M
elbo
urne
)D
ec-1
0La
te 2
009
Pro
ject
com
plet
ed.
Report on the 2008-09 Financial and Performance Outcomes
76
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te
(if a
pplic
able
)
Expl
anat
ion
for r
evis
ion
Trac
k D
uplic
atio
n: C
lifto
n H
ill to
Wes
tgar
th
(Met
ro v
ario
us)
Jun-
10M
id 2
009
Trai
ns b
egan
runn
ing
over
the
new
brid
ge in
Jan
200
9, w
ith p
ract
ical
com
plet
ion
by m
id
2009
. Onl
y m
inor
wor
ks fo
r com
plet
ion
early
201
0.
Wes
tern
Hig
hway
: Dee
r Par
k B
ypas
s an
d Le
akes
Roa
d In
terc
hang
e U
pgra
de (D
eer
Par
k)
Dec
-09
1st h
alf 2
009
Pro
ject
com
plet
ed a
head
of s
ched
ule.
Sou
rce:
D
epar
tmen
tal r
espo
nses
to th
e C
omm
ittee
’s 2
008-
09 F
inan
cial
and
Per
form
ance
Out
com
es Q
uest
ionn
aire
– P
art T
wo
and
clar
ifi ca
tion
ques
tions
77
Chapter 3: Public Sector Infrastructure and Asset Investment
Tabl
e 3.
10:
Maj
or in
f ras
truc
ture
pro
ject
s w
ith c
ompl
etio
n da
tes
dela
yed
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
Dep
artm
ent o
f Edu
catio
n an
d Ea
rly C
hild
hood
Dev
elop
men
t
Alb
ert P
ark
Sec
onda
ry C
olle
ge -
Rep
lace
men
t S
choo
ls (A
lber
t Par
k)M
ay-1
0S
ep-1
0S
ite c
onta
min
atio
n re
quire
d m
ore
com
plex
rem
edia
tion
and
dela
yed
the
cons
truct
ion
com
men
cem
ent.
Ben
digo
Edu
catio
n P
lan
- Reg
ener
atio
n -
Kan
garo
o Fl
at S
econ
dary
Col
lege
(Kan
garo
o Fl
at)
May
-09
Sep
-10
Fina
lisat
ion
of te
nder
doc
umen
ts ta
king
long
er th
an o
rigin
ally
ant
icip
ated
.
Bro
adm
eado
ws
Reg
ener
atio
n - R
egen
erat
ion
- Bro
adm
eado
ws
Sec
onda
ry C
olle
ge
and
Bro
adm
eado
ws
Prim
ary
Sch
ool
(Bro
adm
eado
ws)
Mar
-09
Sep
-09
An
early
chi
ldho
od c
entre
was
add
ed a
s a
varia
nce
to th
e pr
ojec
t sco
pe.
Bro
adm
eado
ws
Reg
ener
atio
n - R
egen
erat
ion
- Erin
bank
Sec
onda
ry C
olle
ge a
nd H
illcr
est
Sec
onda
ry C
olle
ge (B
road
mea
dow
s)
Sep
-09
Nov
-09
Sta
ge 2
of c
onst
ruct
ion
was
aw
arde
d to
the
sam
e bu
ilder
, who
was
wor
king
on
both
site
s co
ncur
rent
ly, w
hich
del
ayed
the
com
plet
ion
of s
tage
1.
Mar
ibyr
nong
Sec
onda
ry C
olle
ge -
Spo
rts
Sch
ool a
t Mar
ibyr
nong
(Mar
ibyr
nong
)D
ec-0
9A
pr-1
0Th
e co
nstru
ctio
n tim
elin
e w
as a
men
ded
due
to la
tent
site
con
ditio
ns.
Wes
tern
Hei
ghts
Reg
ener
atio
n - R
egen
erat
ion
- Wes
tern
Hei
ghts
Sec
onda
ry C
olle
ge -
Thre
e C
ampu
ses
(Ham
lyn
Hei
ghts
)
Dec
-10
Mar
-11
Res
olut
ion
of th
e Jo
int U
se A
gree
men
t and
land
pur
chas
e is
sues
with
the
City
of G
reat
er
Gee
long
was
ach
ieve
d an
d co
nstru
ctio
n co
mm
ence
d.
Ben
digo
Edu
catio
n P
lan
- Eag
leha
wk
- E
agle
haw
k S
econ
dary
Col
lege
- S
tage
2
(Eag
leha
wk)
May
-09
Sep
-10
Fina
lisat
ion
of te
nder
doc
umen
ts ta
king
long
er th
an o
rigin
ally
ant
icip
ated
.
Ben
digo
Edu
catio
n P
lan
- Kan
garo
o Fl
at -
Kan
garo
o Fl
at S
econ
dary
Col
lege
- S
tage
2
(Kan
garo
o Fl
at)
May
-09
Sep
-10
Fina
lisat
ion
of te
nder
doc
umen
ts ta
king
long
er th
an o
rigin
ally
ant
icip
ated
.
Dan
deno
ng -
Reg
ener
atio
n - D
ande
nong
Hig
h,
Cle
elan
d S
econ
dary
Col
lege
and
Dov
eton
S
econ
dary
Col
lege
- S
tage
2 (D
ande
nong
)
Jun-
10Ja
n-11
Del
ay in
aw
ardi
ng th
e co
ntra
ct a
s th
e sc
ope
of w
ork
chan
ged
at th
e de
sign
and
de
velo
pmen
t sta
ge.
Report on the 2008-09 Financial and Performance Outcomes
78
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
John
Mon
ash
Sci
ence
Sch
ool -
Mon
ash
Uni
vers
ity, C
layt
on C
ampu
s (C
layt
on)
Nov
-09
Mar
-10
Pro
ject
com
plet
ion
revi
sed
due
to a
djac
ent w
orks
bei
ng c
ompl
eted
by
Mon
ash
Uni
vers
ity.
Dep
artm
ent o
f Hum
an S
ervi
ces
Box
Hill
Hos
pita
l Out
patie
nts
and
Dia
lysi
s C
entre
and
Ass
ocia
ted
Wor
ks (B
ox H
ill)
Jun-
08M
ar-1
0Fa
vour
able
bui
ldin
g co
nditi
ons
allo
wed
ear
ly w
orks
to b
e ac
cele
rate
d fo
r ini
tial s
tage
s of
co
nstru
ctio
n. M
ain
cons
truct
ion
wor
ks c
ompl
eted
in J
une
2008
acc
ordi
ng to
sch
edul
e.
Maj
or p
lann
ing
wor
k to
be
unde
rtake
n as
par
t of t
he o
vera
ll re
deve
lopm
ent o
f the
site
. A
ntic
ipat
ed to
be
com
plet
ed b
y M
arch
201
0.
Cau
lfi el
d G
ener
al M
edic
al C
entre
Log
istic
s B
uild
ing
and
Ass
ocia
ted
Wor
ks (C
aulfi
eld)
Mar
-08
Dec
-09
A re
visi
on o
f the
ser
vice
pla
n re
sulte
d in
a fu
rther
revi
ew o
f the
mas
terp
lan,
del
ayin
g th
e fu
ll si
te d
evel
opm
ent.
Ove
rall,
the
proj
ect w
as c
ompl
eted
by
its re
vise
d en
d-da
te o
f D
ecem
ber 2
009.
Cau
lfi el
d G
ener
al M
edic
al C
entre
R
edev
elop
men
t Sta
ge 2
(Cau
lfi el
d)N
ov-1
0D
ec-1
0P
roje
ct p
rogr
essi
ng to
sch
edul
e.
Dis
abili
ty S
ervi
ces
Stra
tegi
c R
efur
bish
men
t an
d R
epla
cem
ent P
rogr
am S
tage
2
(Sta
tew
ide)
Mar
-09
Feb-
10Th
e In
nova
tive
Hou
sing
Opp
ortu
nitie
s P
rogr
am (I
HO
P) p
ortio
n of
the
proj
ect h
as b
een
amen
ded
to F
ebru
ary
2010
, due
to fi
nalis
atio
n of
the
targ
et c
lient
gro
up a
nd in
corp
orat
ion
into
the
Dep
artm
ent’s
pub
lic a
nd s
ocia
l hou
sing
dev
elop
men
t pro
gram
.
Eas
tern
Hea
lth M
enta
l Hea
lth R
edev
elop
men
t S
tage
1 (B
ox H
ill, R
ingw
ood
Eas
t)A
pr-0
9Ju
n-09
Som
e m
inor
del
ays
to th
e pr
ojec
t wer
e ex
perie
nced
due
to g
ende
r sen
sitiv
ity is
sues
id
entifi
ed
as p
art o
f the
des
ign
deve
lopm
ent p
hase
. The
se is
sues
wer
e re
quire
d to
be
addr
esse
d in
con
sulta
tion
with
the
agen
cy b
efor
e th
e de
sign
pro
ject
cou
ld b
e fi n
alis
ed a
nd
cons
truct
ion
com
men
ced.
Ele
ctro
nic
Pre
scrib
ing
in K
ey V
icto
rian
Hos
pita
ls (S
tate
wid
e)Ju
n-09
Dec
-10
Del
ays
asso
ciat
ed w
ith fi
nalis
ing
agen
cy p
artic
ipat
ion
resu
lted
in d
elay
s. P
roje
ct e
xpec
ted
to b
e co
mpl
eted
by
Dec
201
0.
Gee
long
Hos
pita
l Em
erge
ncy
Dep
artm
ent
Red
evel
opm
ent (
Gee
long
)D
ec-0
8M
ar-0
9P
roje
ct c
ompl
ete
and
is in
fi na
ncia
l com
plet
ion
phas
e. M
inor
def
ect a
nd fa
ult r
epor
t is
the
reas
on fo
r the
revi
sed
com
plet
ion
date
of M
arch
200
9.
Gra
ce M
cKel
lar C
entre
– R
edev
elop
men
t S
tage
2 (G
eelo
ng)
Jun-
07Ju
n-09
The
mai
n pr
ojec
t red
evel
opm
ent w
as c
ompl
ete
and
faci
litie
s op
erat
iona
l in
June
200
7 ac
cord
ing
to s
ched
ule.
A. n
umbe
r of m
inor
enh
ance
men
ts/m
inor
wor
ks id
entifi
ed
with
in
the
orig
inal
rnas
terp
lan
wer
e un
derta
ken
follo
win
g co
mpl
etio
n of
the
mai
n fa
cilit
y, d
elay
ing
over
all fi
nan
cial
com
plet
ion
of th
e pr
ojec
t. A
Il w
orks
hav
e no
w b
een
com
plet
ed.
Kew
Res
iden
tial S
ervi
ces
Red
evel
opm
ent
(Kew
)A
pr-0
8Ju
n-09
Del
ays
to c
onst
ruct
ion
of th
e on
-site
hou
ses
aros
e du
ring
the
proj
ect d
ue to
cha
nge
in
owne
rshi
p of
the
lead
con
tract
or. T
he o
ff-si
te h
ouse
s w
ere
com
plet
ed a
ccor
ding
to th
e or
igin
al s
ched
ule,
with
on-
site
hou
ses
com
plet
ed b
y th
e re
vise
d en
d-da
te.
79
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
Kin
gsto
n C
entre
Kitc
hen
Upg
rade
and
A
ssoc
iate
d W
orks
(Hea
ther
ton)
Dec
-08
Dec
-10
Crit
ical
add
ition
al in
frast
ruct
ure
wor
ks, a
s w
ell a
s co
st o
verr
uns
asso
ciat
ed w
ith te
nder
on
Pro
duct
ion
Kitc
hen
has
caus
ed d
elay
s to
the
over
all p
roje
ct a
nd T
EI.
Add
ition
al T
EI h
as
been
fund
ed fr
om te
nder
sav
ings
from
the
Cas
ey A
ged
Car
e D
evel
opm
ent.
Wor
ks a
re
prog
ress
ing
to re
vise
d pr
ogra
m a
nd s
ched
uled
for c
ompl
etio
n in
late
201
0.
Nor
th R
ichm
ond
Com
mun
ity H
ealth
Cen
tre
Rel
ocat
ion
(Nor
th R
ichm
ond)
Dec
-09
Dec
-11
Tow
n pl
anni
ng is
sues
affe
cted
pro
gres
sion
of t
he p
roje
ct, r
esul
ting
in a
n ov
eral
l del
ay.
Faci
lity
rede
sign
and
esc
alat
ion
of c
onst
ruct
ion
cost
s ov
er th
e ex
tend
ed d
evel
opm
ent
perio
d ha
s re
sulte
d in
incr
ease
d co
sts
for t
he o
vera
ll pr
ojec
t. A
dditi
onal
TE
I has
bee
n fu
nded
from
sav
ings
with
in o
ther
TE
I fun
ded
proj
ects
. An
alte
rnat
e si
te h
as b
een
iden
tifi e
d an
d th
e pr
ojec
t has
reco
mm
ence
d.
Roc
hest
er a
nd E
lmor
e D
istri
ct H
ealth
S
ervi
ce :
Roc
hest
er T
heat
re a
nd H
ospi
tal
Red
evel
opm
ent (
Roc
hest
er)
Sep
-09
Mar
-10
Asb
esto
s di
scov
ered
dur
ing
dem
oliti
on w
orks
has
resu
lted
in a
revi
sed
end-
date
of
Mar
-201
0.
Sta
wel
l Hea
lth a
nd C
omm
unity
Cen
tre
Red
evel
opm
ent (
Sta
wel
l)D
ec-0
9Fe
b-10
Min
or d
elay
s ex
perie
nced
due
to u
nfor
esee
n si
te c
ondi
tions
. Pro
gres
sing
to re
vise
d sc
hedu
le, w
ith a
pra
ctic
al c
ompl
etio
n da
te o
f Feb
ruar
y 20
10.
War
rack
nabe
al N
ursi
ng H
ome
Sta
ge 1
R
edev
elop
men
t (W
arra
ckna
beal
)M
ay-0
8Ju
n-09
Red
esig
ns o
n pl
anni
ng o
ptio
ns c
ause
d in
itial
con
stru
ctio
n de
lays
. Mai
n co
nstru
ctio
n w
orks
co
mpl
eted
with
in o
rigin
al ti
mel
ines
. Pro
ject
is in
fi na
ncia
l com
plet
ion/
defe
ct li
abili
ty p
hase
.
War
rnam
bool
Hos
pita
l Red
evel
opm
ent –
Sta
ge
1 (W
arrn
ambo
ol)
Sep
-10
Feb-
11Fi
nalis
atio
n an
d pr
ocur
emen
t of a
new
site
for t
he a
mbu
lanc
e st
atio
n ha
s re
sulte
d in
an
over
all d
elay
to th
e pr
ojec
t. A
ll w
orks
com
plet
ed e
xcep
t for
the
com
plet
ion
of th
e ne
w
ambu
lanc
e st
atio
n. A
ntic
ipat
ed to
be
com
plet
ed b
y Fe
brua
ry 2
011.
Dep
artm
ent o
f Inn
ovat
ion,
Indu
stry
and
Reg
iona
l Dev
elop
men
t
Aut
omot
ive
Cen
tre o
f Exc
elle
nce,
Kan
gan
Bat
man
TA
FE (D
ockl
ands
) – S
tage
2Ju
n-11
Sep
-11
The
proj
ect h
as b
een
dela
yed
due
to th
e ne
cess
ary
rem
edia
tion
of s
oil c
onta
min
atio
n ar
ound
a d
ecom
mis
sion
ed m
ain
trunk
sew
er.
Ben
digo
Inst
itute
of T
AFE
– C
harle
ston
Roa
d C
ampu
s re
deve
lopm
ent (
Ben
digo
)Ju
n-09
Jun-
11A
dela
y in
com
plet
ing
the
tend
er d
ocum
enta
tion
has
been
exp
erie
nced
. Pro
ject
ant
icip
ated
to
be
com
plet
ed b
y Ju
ne 2
011.
The
proj
ect w
as o
rigin
ally
fund
ed fo
r $6.
0 m
illio
n w
ith a
com
plet
ion
date
of J
une
2009
. A
revi
ew o
f the
pro
ject
sco
pe re
sulte
d in
the
addi
tiona
l Sta
te fu
ndin
g of
$5.
0 m
illio
n w
ith a
co
nseq
uent
late
r com
plet
ion
date
.
Report on the 2008-09 Financial and Performance Outcomes
80
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
Chi
shol
m In
stitu
te o
f TA
FE –
Tra
de
(Aut
omot
ive
& L
ogis
tics)
Tra
inin
g C
entre
(D
ande
nong
) – C
omm
onw
ealth
sup
porte
d pr
ojec
t
Dec
-09
Jun-
11Th
e de
lay
to th
e pr
ojec
t can
be
attri
bute
d to
:
The
desi
gn te
am w
as u
nabl
e to
mee
t doc
umen
tatio
n m
ilest
one
date
s du
e to
un
certa
inty
at t
he T
AFE
on
the fi n
al p
roje
ct s
cope
; and
co
nstru
ctio
n te
nder
s re
ceiv
ed e
xcee
ded
the
proj
ect b
udge
t and
the
desi
gn w
as
subj
ecte
d to
an
exte
nsiv
e va
lue
man
agem
ent p
roce
ss.
A bu
ilder
has
now
bee
n ap
poin
ted
and
cons
truct
ion
prog
ress
cla
ims
will
ens
ure
a st
eady
ca
sh fl
ow.
Nor
ther
n M
elbo
urne
Inst
itute
of T
AFE
–
Cam
pus
rede
velo
pmen
t Sta
ge 1
(Epp
ing)
Jan-
11Ju
n-11
Ther
e w
as a
del
ay o
f app
roxi
mat
ely
six
wee
ks w
hile
Val
ue M
anag
emen
t Stu
dy to
ok p
lace
. Th
e de
sign
team
was
una
ble
to m
eet t
he d
ocum
enta
tion
mile
ston
e da
tes.
The
tend
ers
rece
ived
exc
eede
d th
e pr
ojec
t bud
get a
nd th
e de
sign
has
bee
n su
bjec
ted
to a
n ex
tens
ive
valu
e m
anag
emen
t pro
cess
whi
ch h
as a
dded
six
mon
ths
to th
e pr
ojec
t pr
ogra
m.
Prin
cess
Pie
r Res
tora
tion
(Por
t Mel
bour
ne)
Dec
-09
Dec
-10
The
proj
ect h
as b
een
dela
yed
due
to th
e ne
ed to
repl
ace
sign
ifi ca
nt a
mou
nts
of th
e ex
istin
g tim
ber,
whi
ch w
as in
itial
ly th
ough
t to
be re
usab
le. A
dditi
onal
fund
ing
of $
20 m
illio
n to
com
plet
e th
e w
orks
has
bee
n ap
prov
ed.
Sou
th W
est I
nstit
ute
of T
AFE
– W
arrn
ambo
ol
stag
e 3
rede
velo
pmen
t (S
tate
fund
ed
com
pone
nt)
Dec
-08
Jul-0
9G
roun
d ex
cava
tion
afte
r dem
oliti
on re
veal
ed th
e fo
otin
gs o
f an
orig
inal
cou
rt ho
use.
The
su
bseq
uent
arc
haeo
logi
cal s
urve
y ha
d an
impa
ct o
n th
e pr
ogra
m.
Tend
ers
rece
ived
exc
eede
d th
e pr
ojec
t bud
get a
nd th
e de
sign
was
sub
ject
ed to
an
exte
nsiv
e va
lue
man
agem
ent p
roce
ss, r
e-do
cum
enta
tion
and
re-te
nder
ing.
Tech
nica
l Edu
catio
n C
entre
s (v
ario
us)
Jun-
09N
ov-0
9S
tate
fund
ing
for T
echn
ical
Edu
catio
n C
entre
s (T
EC
) con
sist
s of
four
pro
ject
s, o
f whi
ch
thre
e ar
e on
sch
edul
e. Is
sues
sur
roun
ding
the
exis
ting
Bre
w T
ower
at t
he B
alla
rat
Tech
nica
l Edu
catio
n C
entre
are
sig
nifi c
antly
impa
ctin
g on
this
pro
ject
. As
the
Sch
ool o
f M
ines
car
par
k pr
ojec
t is
inte
rlink
ed w
ith th
e B
alla
rat T
echn
ical
Edu
catio
n C
entre
, thi
s pr
ojec
t is
impa
cted
by
the
lack
of p
rogr
ess.
Ana
lyse
s of
the
optio
ns to
pro
ceed
are
bei
ng
unde
rtake
n su
bjec
t to
Min
iste
rial a
ppro
val.
Vict
oria
Uni
vers
ity –
Con
solid
atio
n of
E
ngin
eerin
g an
d IC
T –
Com
mon
wea
lth
supp
orte
d pr
ojec
t
Jun-
07M
ay-0
8Th
e pr
ojec
t com
plet
ed in
May
200
8. T
he d
elay
s to
the
com
plet
ion
date
wer
e at
tribu
ted
to th
e U
nive
rsity
not
bei
ng a
ble
to s
ettle
on
a fi n
al s
cope
for t
he p
roje
ct. F
inal
pro
ject
pa
ymen
ts w
ere
with
held
unt
il th
e bu
ilder
com
plet
ed m
ajor
rect
ifi ca
tions
.
81
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
Will
iam
Ang
liss
Inst
itute
of T
AFE
– N
ew
teac
hing
faci
lity
and
cam
pus
rede
velo
pmen
t –
Com
mon
wea
lth s
uppo
rted
proj
ect
May
-08
Dec
-08
The
initi
al p
roje
ct p
rogr
am d
id n
ot ta
ke in
to a
ccou
nt th
e di
ffi cu
lties
of w
orki
ng o
n a
very
tig
ht in
ner c
ity c
ampu
s an
d th
e is
sues
of h
azar
dous
mat
eria
ls re
mov
al d
isco
vere
d in
the
1930
s bu
ildin
gs th
at h
ad to
be
dem
olis
hed.
Dep
artm
ent o
f Jus
tice
Ara
rat P
olic
e S
tatio
n (P
olic
e S
tatio
ns P
rogr
am
2007
-08)
– C
onst
ruct
ion
(Ara
rat)
Jun-
10O
ct-1
0P
roje
ct d
elay
ed d
ue to
the
plan
ning
pro
cess
pro
gres
sing
thro
ugh
the
Vict
oria
n C
ivil
and
Adm
inis
trativ
e Tr
ibun
al (V
CAT
).
Bru
nsw
ick
and
Col
lingw
ood
Pol
ice
Com
plex
es
– U
pgra
des
(Bru
nsw
ick
and
Col
lingw
ood)
Jun-
08A
ug-0
9P
roje
ct d
elay
ed a
s a
resu
lt of
iden
tifi c
atio
n an
d di
spos
al o
f haz
ardo
us m
ater
ials
(asb
esto
s)
and
conc
eale
d re
dund
ant p
lant
and
equ
ipm
ent.
Mel
bour
ne N
orth
Pol
ice
Sta
tion
– C
onst
ruct
ion
(Car
lton–
Nor
th M
elbo
urne
)N
ov-0
6A
ug-1
0P
roje
ct s
ignifi c
antly
del
ayed
due
to o
rigin
al s
ite id
entifi
ed
for c
ompu
lsor
y ac
quis
ition
pro
ved
unsu
itabl
e du
e to
con
tam
inat
ion
and,
acc
ordi
ngly,
a s
econ
d si
te w
as id
entifi
ed
and
the
com
puls
ory
acqu
isiti
on p
roce
ss re
com
men
ced.
Car
rum
Dow
ns P
olic
e S
tatio
n (P
olic
e S
tatio
ns
Pro
gram
200
7-08
) – C
onst
ruct
ion
(Car
rum
D
owns
)
Jun-
10A
ug-1
0P
roje
ct d
elay
ed d
ue to
pro
tract
ed s
ite id
entifi
cat
ion
and
acqu
isiti
on p
roce
ss.
Inte
grat
ed C
ourts
Man
agem
ent S
yste
m
(ICM
S) –
Ass
et E
nhan
cem
ent (
Sta
tew
ide)
Sep
-09
Dec
-10
Pro
ject
del
ayed
due
to th
e co
ntra
ctor
hav
ing
sign
ifi ca
nt is
sues
in th
e de
sign
and
roll-
out o
f th
e so
ftwar
e, a
long
with
var
iatio
ns to
the
orig
inal
sco
pe. T
he c
apita
l bud
get f
or th
is p
roje
ct
has
been
fully
spe
nt, h
owev
er n
o fu
rther
ass
et fu
ndin
g w
ill b
e so
ught
from
DTF
with
the
rem
aind
er o
f the
fund
ing
to c
ome
from
out
put b
udge
t and
ope
ratio
nal c
ost s
avin
gs.
Just
ice
Sys
tem
Maj
or C
rimes
Res
ourc
ing
Nee
ds –
Ass
et E
nhan
cem
ent (
Sta
tew
ide)
Mar
-06
Apr
-10
The
initi
al s
tage
of t
he p
roje
ct w
as s
ignifi c
antly
del
ayed
due
to c
hang
es to
the
syst
em
requ
irem
ents
, the
pro
ject
team
and
man
agem
ent.
The
proj
ect w
as th
en fu
rther
del
ayed
w
hen
the
priv
ate
sect
or s
uppl
ier f
aile
d to
del
iver
ser
vice
s an
d w
as te
rmin
ated
, lea
ding
to
the
proj
ect m
anag
emen
t dec
isio
n to
dev
elop
the
syst
em in
-hou
se in
Mar
ch 2
008.
Thi
s le
d to
cha
nges
to th
e pr
ojec
t sco
pe, a
s w
ell a
s th
e pl
anne
d tw
o-ph
ase
deliv
ery
of th
e sy
stem
be
ing
chan
ged
to a
sin
gle
deliv
ery.
The
sys
tem
is n
ow in
its fi n
al s
essi
ons
of te
stin
g pr
ior t
o go
live
in A
pril
2010
.
Kyn
eton
Pol
ice
Sta
tion
(Pol
ice
Sta
tions
P
rogr
am 2
007-
08) –
Con
stru
ctio
n (K
ynet
on)
Jun-
10A
ug-1
0P
roje
ct d
elay
ed d
ue to
pro
tract
ed c
ounc
il pl
anni
ng p
roce
ss, a
long
with
add
ition
al
cond
ition
s im
pose
d by
Her
itage
Vic
toria
, whi
ch re
sulte
d in
a re
desi
gn o
f the
site
mas
ter
plan
and
a p
ortio
n of
the
build
ing.
Report on the 2008-09 Financial and Performance Outcomes
82
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
Lily
dale
Pol
ice
Sta
tion
– C
onst
ruct
ion
(Lily
dale
)Ju
n-09
Mar
-10
Pro
ject
del
ayed
due
to p
rotra
cted
cou
ncil
plan
ning
pro
cess
.
Mel
bour
ne L
egal
Pre
cinc
t Mas
ter P
lan
– O
ld
Cou
nty
Cou
rt R
efur
bish
men
t – C
onst
ruct
ion/
Enh
ance
men
t (M
elbo
urne
)
Jun-
10Ju
l-10
Pro
ject
del
ayed
due
to id
entifi
cat
ion
and
rem
oval
of h
azar
dous
was
te (a
sbes
tos)
whi
ch in
tu
rn d
elay
ed th
e ap
poin
tmen
t of c
ontra
ctor
.
Mod
erni
sing
Cor
onia
l Ser
vice
s –
Con
stru
ctio
n (M
elbo
urne
)Ju
n-11
Jun-
13P
roje
ct d
elay
ed d
ue to
iden
tifi c
atio
n of
late
nt s
ite c
onta
min
atio
n. In
add
ition
, Fed
eral
fu
ndin
g ($
13.0
M) f
or th
e ne
w D
onor
Tis
sue
Ban
k Vi
ctor
ia (D
TBV
) fur
ther
del
ayed
pr
ojec
t doc
umen
tatio
n an
d co
mm
ence
men
t of c
onst
ruct
ion.
The
Dep
artm
ent i
s se
ekin
g to
con
solid
ate
a nu
mbe
r of f
undi
ng s
ourc
es, i
nclu
ding
this
pro
ject
(alo
ng w
ith
Mor
tuar
y S
ervi
ces
and
the
DTB
V) i
nto
a si
ngle
pro
ject
title
d “S
tate
Cor
onia
l Ser
vice
s R
edev
elop
men
t (S
CS
R)”
.
Org
anis
ed C
rime
and
Cou
nter
Ter
roris
m –
A
sset
Enh
ance
men
t (S
tate
wid
e)Ju
n-08
Nov
-08
Pro
ject
com
plet
e. T
his
proj
ect c
onta
ined
mul
tiple
seg
men
ts a
cros
s bo
th th
e D
epar
tmen
t of
Jus
tice
and
Vict
oria
Pol
ice.
The
maj
ority
of t
hese
seg
men
ts w
ere
com
plet
ed a
s pe
r the
or
igin
al s
ched
ule.
How
ever
, the
fi na
l tw
o se
gmen
ts w
ere
dela
yed
beca
use
of p
rocu
rem
ent
issu
es a
nd w
ere
subs
eque
ntly
com
plet
ed b
y N
ovem
ber 2
008.
Dep
artm
ent o
f Pla
nnin
g an
d C
omm
unity
Dev
elop
men
t
Foot
scra
y Tr
ansi
t City
– U
pgra
deJu
n-10
Dec
-10
The
foot
brid
ge is
exp
ecte
d to
be
com
plet
ed b
y Ju
ne 2
010.
Dev
elop
men
t of t
he fo
reco
urts
an
d re
mov
al o
f old
foot
brid
ge a
re e
xpec
ted
to b
e co
mpl
eted
by
Dec
embe
r 201
0.
Rec
tang
ular
Spo
rts S
tadi
um –
Con
stru
ctio
n (O
lym
pic
Par
k)M
ar-0
8M
ay-1
0Th
e sc
hedu
le o
f wor
ks fr
om th
e m
ain
cont
ract
or h
as b
een
adju
sted
to refl e
ct th
e re
vise
d co
nstru
ctio
n pr
ogra
m fo
r an
incr
ease
in s
eatin
g ca
paci
ty a
nd te
nant
fi t-o
ut w
orks
sin
ce th
e or
igin
al p
rogr
am s
ched
ule.
Dep
artm
ent o
f Pre
mie
r and
Cab
inet
Mel
bour
ne R
ecita
l Cen
tre (M
RC
) & M
elbo
urne
Th
eatre
Com
pany
(MTC
) – C
onst
ruct
ion
Jan-
07M
ar-0
9O
rigin
al c
ompl
etio
n da
te w
as re
vise
d du
e to
site
spe
cifi c
issu
es (s
uch
as g
roun
d co
ntam
inat
ion
and
grou
nd w
ater
), ac
oust
ic v
ibra
tion
isol
atio
n re
quire
men
ts, a
nd c
hang
es
to e
nsur
e th
e fu
nctio
nalit
y an
d vi
abili
ty fo
r the
MTC
thea
tre a
nd M
RC
.
Dep
artm
ent o
f Tra
nspo
rt
Bar
won
Hea
ds B
ridge
Rep
lace
men
t (B
arw
on
Hea
ds)
Sep
-09
Late
201
0C
ompl
etio
n da
te w
as re
vise
d ea
rly in
pro
ject
due
to p
lann
ing
issu
es.
83
Chapter 3: Public Sector Infrastructure and Asset Investment
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
Bas
s H
ighw
ay D
uplic
atio
n –
Sta
ge 1
Kin
g R
oad
to W
oolm
er R
oad
(Bas
s, A
nder
son)
Jan-
10M
id 2
010
Com
plet
ion
date
revi
sed
due
to a
dver
se w
eath
er.
Bas
s H
ighw
ay D
uplic
atio
n S
tage
5 –
Gra
ntvi
lle
to K
ing
Roa
d (G
rant
ville
)Ju
n-08
Ear
ly 2
009
Pro
ject
com
plet
ed.
Bre
akw
ater
Roa
d U
pgra
de (B
elm
ont,
Gee
long
)Fe
b-09
Late
201
1R
evis
ed c
ompl
etio
n da
te refl e
cts
impa
ct o
f pla
nnin
g sc
hem
e am
endm
ent.
Cal
der H
ighw
ay U
pgra
deD
ec 0
61st
hal
f 200
9P
roje
ct c
ompl
eted
. No
chan
ge to
com
plet
ion
date
ove
r the
last
12
mon
ths.
Rev
ised
co
mpl
etio
n da
te refl e
cted
del
ays
in fu
ndin
g co
mm
itmen
t fro
m th
e fe
dera
l gov
ernm
ent.
Con
gest
ion
Impr
ovem
ents
Pro
gram
(var
ious
)Ju
n-10
2nd h
alf 2
010
By
June
201
0, o
nly
one
proj
ect r
emai
ns to
be
com
plet
ed. M
inor
resc
hedu
ling
due
to
fi nal
isat
ion
of s
cope
and
cou
ncil
appr
oval
s.
Cra
nbou
rne
Fran
ksto
n R
oad
Dup
licat
ion
(Hal
l R
oad
and
the
Wes
tern
Por
t Hig
hway
)M
ar-1
01st
hal
f 201
0M
inor
resc
hedu
ling.
Dup
licat
ion
of T
hom
pson
Roa
d –
Car
rum
D
owns
Dec
-09
Ear
ly 2
010
Com
plet
ion
date
revi
sed
due
to a
dver
se w
eath
er.
Fern
tree
Gul
ly R
oad
Wid
enin
g –
Jells
Roa
d to
S
tud
Roa
d (S
core
sby)
Jul-0
9La
te 2
009
Pro
ject
com
plet
ed –
min
or re
sche
dulin
g.
Gee
long
Rai
l Acc
ess
Impr
ovem
ent P
roje
ct
(Cor
io/N
orth
Gee
long
)A
ug-0
6M
id 2
009
Pro
ject
com
plet
ed. C
ompl
etio
n in
Jun
e 20
09 refl e
cts
the
com
plet
ion
of s
tand
ard-
gaug
e ra
il co
nnec
tion
into
the
north
ern
part
of th
e P
ort o
f Gee
long
.
Gee
long
Rin
g R
oad
Sta
ge 4
(Gee
long
Rin
g R
oad
to A
ngle
sea
Roa
d –
City
of G
reat
er
Gee
long
)
Oct
-10
Late
201
0
Geo
rge
Stre
et B
ridge
– N
ew B
ridge
to li
nk
Geo
rge
Stre
et to
Brig
hton
Roa
d (D
ande
nong
)Ju
n-08
Mid
201
0Fi
nalis
atio
n of
pro
ject
sco
pe a
nd d
esig
n to
ok lo
nger
than
ant
icip
ated
.
Met
ropo
litan
Tra
in C
ontro
l Rel
iabi
lity
(Mel
bour
ne)
Jun-
10La
te 2
010
No
chan
ge o
f com
plet
ion
date
ove
r las
t 12
mon
ths.
Met
ropo
litan
Tra
in S
afet
y C
omm
unic
atio
ns
Sys
tem
(Met
ro v
ario
us)
Dec
-10
Late
201
1Aw
ard
of m
ain
wor
ks c
ontra
ct o
ccur
red
late
r tha
n pl
anne
d. N
o ch
ange
of c
ompl
etio
n da
te
over
last
12
mon
ths.
Report on the 2008-09 Financial and Performance Outcomes
84
Proj
ect
Orig
inal
co
mpl
etio
n da
te
Rev
ised
co
mpl
etio
n da
te (i
f ap
plic
able
)
Expl
anat
ion
for r
evis
ion
New
Tic
ketin
g S
olut
ion
– Te
chno
logy
and
In
stal
latio
n (S
tate
wid
e)20
0820
10N
o ch
ange
of c
ompl
etio
n da
te o
ver l
ast 1
2 m
onth
s.
Nor
th E
ast R
ail R
evita
lisat
ion
Pro
ject
(var
ious
)M
id 2
010
Late
201
0Th
is is
a p
rogr
am o
f wor
ks, w
hich
man
y as
pect
s w
ill b
e co
mpl
eted
on
sche
dule
. Som
e de
lay
has
resu
lted
from
the
chan
ged
loca
tion
of a
faci
lity
and
the
defe
rral
of c
omm
issi
onin
g w
orks
.
Reg
iona
l Rol
lings
tock
(non
-Met
ro v
ario
us)
Jul-0
91st
hal
f 201
0R
evis
ed c
ompl
etio
n da
te refl e
cts
the
prov
isio
n of
add
ition
al tr
ains
fund
ed in
200
8-09
.
Tayl
ors
Roa
d (1
5.2k
m to
15.
8km
) – B
ypas
s/N
ew R
oad
– S
yden
ham
Rd
to E
ast E
spla
nade
–
Gra
de S
epar
atio
n (S
t Alb
ans)
Jun-
08La
te 2
008
Pro
ject
com
plet
ed –
min
or re
sche
dulin
g.
Vigi
lanc
e C
ontro
l and
Eve
nt R
ecor
ding
S
yste
m o
n M
etro
polit
an T
rain
s (V
ICE
RS
) (M
etro
var
ious
)
Jun-
08La
te 2
011
Sev
eral
issu
es c
ontri
bute
d to
the
revi
sed
timef
ram
e, in
clud
ing:
RTB
U w
ithdr
awin
g as
sist
ance
from
VIC
ER
S fo
r thr
ee m
onth
s in
ear
ly 2
006;
Sie
men
s br
akin
g is
sue
dive
rting
te
chni
cal r
esou
rces
in 2
006/
07; I
nteg
rian
acqu
isiti
on a
nd d
iver
sion
of r
esou
rces
to U
S
proj
ects
, cou
pled
with
the
com
pany
bei
ng p
lace
d in
to a
dmin
istra
tion
in 2
007/
08; a
nd
unav
aila
bilit
y of
trai
ns fr
om J
uly
to O
ctob
er 2
008.
Rev
ised
com
plet
ion
date
refl e
cts
the
reso
lutio
n of
sof
twar
e is
sues
and
ens
urin
g th
at s
yste
m p
erfo
rman
ce is
sta
ble.
Vine
yard
Roa
d (O
beid
Driv
e an
d M
itche
lls
Lane
, Sun
bury
)D
ec-0
9M
id 2
010
Min
or re
sche
dulin
g.
Who
le o
f Gov
ernm
ent –
Tra
nsit
Citi
es –
B
alla
rat S
econ
d S
tatio
n (B
alla
rat)
End
200
8M
id 2
009
Pro
ject
com
plet
ed. N
o ch
ange
to c
ompl
etio
n da
te o
ver t
he la
st 1
2 m
onth
s.
Wod
onga
Rai
l Byp
ass
(Wod
onga
)O
ct-0
4O
ct-1
0N
o ch
ange
to c
ompl
etio
n da
te o
ver t
he la
st 1
2 m
onth
s.
Sou
rce:
D
epar
tmen
tal r
espo
nses
to th
e C
omm
ittee
’s 2
008-
09 F
inan
cial
and
Per
form
ance
Out
com
es Q
uest
ionn
aire
– P
art T
wo
and
clar
ifi ca
tion
ques
tions
85
Chapter 3: Public Sector Infrastructure and Asset Investment
3.5. Supporting departments’ project planning and management
Overall, in only 27 per cent of cases were projects delivered within 10 per cent of their 2008-09 budget. Similarly, only 51 per cent of projects currently underway expect to meet their original completion dates. This indicates that departments are experiencing some diffi culties accurately estimating required budgets and timelines. To ensure effi cient and effective delivery of infrastructure programs, it is important that departments have expert guidance when undertaking initial project planning and through the life of projects.
Based on explanations given to the Committee in this inquiry, it appears that departments would benefi t from expert guidance with respect to:
identifying all required steps of a project;
accurately estimating the timing of steps;
ensuring that project scope is fully and correctly identifi ed at the start of the project; and
successfully incorporating the needs of stakeholders, including agencies and councils, into scope defi nition and timeline planning.
In its Report on the 2007-08 Financial and Performance Outcomes, the Committee recommended that:51
Departments establish knowledge management processes and systems that facilitate the sharing of expert knowledge and lessons learnt in the planning and timing of major infrastructure projects. This is essential in the planning stages of a project.
The Government’s response indicated that the Government was seeking to achieve this through a number of means, primarily through work undertaken by the Department of Treasury and Finance. This included the establishment of a Gateway Supervisory Committee to share lessons learnt from major infrastructure investment projects, the Investment Lifecycle Guidance publications, business case training sessions and a Project Management Community of Practice.52
The Department of Treasury and Finance and Major Projects Victoria (for projects nominated under the Project Development and Construction Management Act 1994) play key roles in supporting departments to plan and manage their projects. In both cases, little information is made publicly available about how effective and effi cient these project management and support services have been. To ensure that these bodies are providing as much benefi t as possible, it is important that the effectiveness and effi ciency of their support in terms of infrastructure project outcomes be assessed and reported.
51 Public Accounts and Estimates Committee, Report on the 2007-08 Financial and Performance Outcomes, May 2009, recommendation 7, p.79
52 Victorian Government, Responses to the Recommendations of Public Accounts and Estimates Committee’s 79th Report on the 2007-08 Financial and Performance Outcomes, November 2008, p.7
Report on the 2008-09 Financial and Performance Outcomes
86
The Committee notes that the Department of Treasury and Finance, along with other government agencies such as the Victorian Auditor-General’s Offi ce, do produce a number of guidance materials and best practice guides for departments to use in managing asset investment projects. However, these products are only useful in as much as they are successfully integrated into departments’ activities. It is therefore important for the Department of Treasury and Finance to monitor the uptake of its advice by departments, so that it can modify its products to improve uptake or results if required.
Recommendation 5: The Department of Treasury and Finance establish measures, and report on their success against them in its annual reports, to assess the performance of its programs facilitating project planning and management in terms of:
(a) the extent to which the Department’s advice is actually incorporated into project planning and management by agencies; and
(b) the extent to which the Department’s programs actually improve agencies’ ability to deliver projects on time and on budget.
The Department of Treasury and Finance consider whether it should facilitate project management training for project managers in other departments so as to assist departments to implement its advice and guidance.