Western Australia
Mon 29 May 2017

Metronet team can look for value from WA businesses: CCF WA

The Civil Contractors Federation WA has welcomed the State Government’s establishment of a specialist team to unlock value capture opportunities on Metronet, and says packaging the construction works to maximise opportunities for WA businesses should be a key focus.

CCF WA Chief Executive Officer Jeff Miller said Transport Minister Rita Saffioti’s multi-disciplinary team would help realise the State Government’s plan to find value capture opportunities around the stations on the new rail lines.

“CCF WA supports value capture and other forms of ‘user charging’ that lessen the infrastructure funding burden on taxpayers,” Mr Miller said.

“‘User pays’ is a well-established principle in the water and power infrastructure markets, among others. Innovative funding mechanisms such as value capture and road user charging can help pay for the transport infrastructure WA needs, without increasing the tax burden.

“Another way to capture value for the State from infrastructure development is to procure projects in a way that encourages participation by WA contractors and suppliers.

“We’re pleased that the Government is committed to maximising local content in the construction of Metronet. One of the smartest ways to do that is to ‘de-bundle’ the construction works and materials supply contracts into multiple packages, enabling broader participation by WA’s mid-sized businesses – companies that provide long-term employment for hundreds of thousands of Western Australians.

“There is ample potential on metropolitan rail projects for effective de-bundling – for example, the bulk earthworks, tracklaying, stations, overpasses, signalling and electrification can be procured as individual contracts, creating multiple opportunities for WA contractors.

“Two of the keys to effective procurement are starting early, so you have time to examine all options, and having a well-resourced team so you have the capability to choose and deliver the best options. That’s why it’s pleasing to see that the State Government is putting together a strong Metronet team well in advance of project delivery.”