The Federal Government has released $2.2 billion in funds for Victoria’s Suburban Rail Loop, but there will be strict conditions attached.
Speaking to the media today, Premier Jacinta Allan said the money can only be spent on “very specific things” including ground testing, utilities and land acquisition.
Building for the first stage of the project, SRL East, is already underway between Cheltenham and Box Hill in Melbourne.
Twin tunnels stretching 26km will connect six new underground stations, and the government said each station will enable around 70,000 new homes to be built in these areas by the 2050s.
SRL East is expected to cost between $30 billion and $34.5 billion, with an estimated completion date of 2035.
Plans are also in place for the wider SRL project to later include north, airport and west sections, however construction has not yet started on any of these sections.
So far, the Victorian Government has committed $11.8 billion to the project, and is hoping the Federal Government will provide a third of the overall cost.
The final third is expected to come from “value capture”, a way of funding infrastructure through taxes, levies or charges associated with increases in the value of land.
