RRL Funding
Construction of the Regional Rail Link (RRL) is jointly funded by the Australian and Victorian Governments. The total cost estimate was $4.3 billion.
The Australian Government is contributing $3,225 million (i.e. $3.2 billion). This money is for the RRL project and will not be available for other purposes if the Victorian Government were to abandon the RRL project – the Victorian Government needs to use it or lose it.
On February 4, 2011 the Victorian Minister for Transport, the Hon. Terry Mulder, told ABC Radio that a cost blowout will force changes to Regional Rail Link.
The Minister estimated that the cost would rise from $4.3 billion to more than $5 billion. He said that no decision had been made, but the contribution from the Australian Government would be 'delayed' and the project will be 're-profiled'.1
On 8 February 8, 2011 the federal Minister for Infrastructure and Transport, the Hon. Anthony Albanese, announced that $500 million of the Australian Government's RRL project contribution “would re-profiled in order to free up additional funding for the urgent task of rebuilding flood affected communities.” He added that planning for RRL will continue and the project will be delivered.2
A few days after these statements, valuations were sent to the first 24 residents whose homes were subject to compulsory acquisition. Whilst the RRL project was under review by the Victorian Government, Premier Ted Baillieu confirmed that the acquisition of homes would continue.
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