A performance audit into whether five Government entities were delivering the main tunnel and station works for the Melbourne Metro Tunnel has found that while the package was being delivered satisfactorily, the overall project was facing cost and time pressures.
In his report Melbourne Metro Tunnel Phase 2: Main Works, Auditor-General Andrew Greaves said the project had been affected by the COVID-19 pandemic.
Mr Greaves said his audit examined the Cross Yarra Partnership (CYP), the Department of Transport (DoT), the Department of Treasury and Finance (DTF), Metro Trains Melbourne (MTM) and Rail Projects Victoria (RPV).
“Some work has been descoped from the project, almost all risk contingency funds have been used or allocated, and many potential project risks remain,” Mr Greaves said.
“These risks include electromagnetic interference (EMI) from trains, which could affect medical and scientific equipment near two stations,” he said.
“While RPV and CYP have plans to mitigate these EMI risks, they will need to implement them before train testing starts in June 2023.”
Mr Greaves said RPV needed to diligently manage the project’s emerging risks in order to stay within the project’s approved budget of $12.58 billion and meet the September 2024 internal target opening date.
He said the Metro Tunnel Project had experienced some cost overruns and time delays since the delivery contract was amended in December 2020.
“As the project moves into the next risky phases further cost and time pressures could appear,” the Auditor-General said.
“These ongoing cost and time pressures leave RPV limited flexibility to address future risks because they have either used or allocated almost all their risk contingency funds.”
Mr Greaves made three recommendations to DoT, DTF and RPV on reassessing the sufficiency of project contingency funds, mitigating current known delays in the project schedule, and formalising proposed EMI mitigations with relevant stakeholders.
The Auditor-General’s 44-page Report can be accessed at this PS News link.
