Infrastructure Australia Co-ordination

The Western Australian Government’s submissions to Infrastructure Australia are for projects which:

• create jobs,
• attract private investment,
• enhance our competitive advantage, and
• underpin the State’s  economic and social development beyond the short term.

State Development  works with other State Government departments to develop their submissions for specific projects, which are then prioritised by the Government:

The Department of State Development is not involved in preparing submissions to Infrastructure Australia by private sector and non-government organisations.

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The Status Report provides an update on the 2010 submission to Infrastructure Australia (IA). It is intended to provide an overview of the status of Western Australian major infrastructure projects and an update on the infrastructure priorities of the State.

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• The Department of State Development provided the Western Australian  Government’s submission to Infrastructure Australia on 20 December 2010.

• The State Government and Infrastructure Australia have agreed in future to work in a more iterative approach, relying less heavily on the submission based process of previous years.

Western Australian Government Submission 2010
The State Government’s submission includes:

• updates on projects submitted to date; and
• information on the State’s strategic planning for infrastructure developments.
• While all previously submitted projects remain a priority, the State in discussions with Infrastructure Australia, has identified four key developments which strongly align with Infrastructure Australia’s identified priorities:
  • Pilbara Cities:  The Commonwealth has yet to commit funding.  The State Government has earmarked almost $1 billion over the next four years, pending approved Business Cases.  Clarity is sought from Infrastructure Australia in relation to which specific infrastructure initiatives are more likely to be supported so that comprehensive Business Cases can be developed.
  • Mid West Energy Project:  The Commonwealth has yet to commit funding.  Western Power is developing a Business Case for Stages 1 and 2.
  • Gateway WA:  Conditional Commonwealth funding commitment.  The State has provided a more comprehensive and robust submission through the 2010 round.
  • Oakajee:  Funding is subject to submission of a Business Case to Infrastructure Australia.

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On 5 November 2009 the Western Australian Government submitted seven project proposals to Infrastructure Australia.

1. Gateway WA
Proponent: Main Roads

Planned consolidation of the Domestic and International Terminals at Perth Airport and rapid commercial and industrial development on airport land and in the Kewdale/Forrestfield area are generating increased traffic and a requirement to upgrade surrounding roads and port linkages. This also provides an opportunity to create a more efficient and attractive entry to Perth City.

This $600 million project is the State’s first priority, with funding sought to contribute to much needed upgrades to Tonkin Highway, Orrong Road and interchanges along Tonkin and Leach Highways.

2. Pilbara Cities
Proponent: Department of State Development

The strategic importance of the Pilbara Region to the Western Australian and Australian economy, and impending rapid workforce and resident population growth with major new development underway, warrants investment to create vibrant, sustainable regional cities that can support and deliver a skilled workforce, while offering a high standard of living to local communities. 

The Western Australian Government has committed $300 million to a Pilbara Revitalisation Plan and is seeking Infrastructure Australia funding towards a total $471 million for urgent works for airport upgrades, wastewater services, serviced land and some accommodation.

3. Kimberley Supply Base
Proponent: Department of State Development

Inpex Corporation is conducting feasibility studies on the construction of a supply base at Port Torment near Derby to support commercialisation of Browse Basin gas reserves. The project would include an appropriate port, port-related infrastructure and industrial land. 

The construction phase of the project has an estimated total cost of $550 million, the bulk of which will be borne by the private sector. Funding is sought for common use, land based infrastructure to provide access and land for related businesses and industries.

4. Mid-West Energy
Proponent: Western Power

The Western Australian Government has announced it will build a 330kv power line from Pinjar to Eneabba. This will deliver reliable supply to Geraldton and Oakajee Port and related industrial development. It will also allow renewable energy projects to feed into the South West Interconnected System and support the Square Kilometre Array project.

Infrastructure Australia funding is sought for the second stage from Eneabba to Moonyoonooka near Geraldton. This project has an estimated cost of $280 million.

5. Grain Freight Network
Proponent: Department of Transport

The Western Australian grain industry is a major exporter, with over half of the grain traditionally moved by rail. The Western Australian Government has examined the needs of the network and requests Infrastructure Australia funding support for two key components:

• Re-sleepering of the Avon to Albany rail; ($43 million) and
• Upgrading Chester Pass road (a six-year program with a cost of $129 million)

6. Brunswick to Bunbury Port Rail
Proponent: Department of Transport

This project looks to expand the capacity of rail to accommodate industry growth and facilitate increased export volumes through Bunbury Port, by removing an existing bottleneck between Brunswick Junction and Bunbury.

The cost of this project is estimated at $63 million.

7. Port Hedland Inner Harbour
Proponent: Department of Transport

Enhancement of Port Hedland Port will cater for the increased capacity required by existing and new projects. Specifically, the port channel needs to be widened and dredged to cater for more and larger ships.

The estimated cost of this work is from $500 million to $1 billion much of which would be met by private port users over time.

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In the first round of Infrastructure Australia funding in 2008, the Western Australian Government submitted five projects all of which were included on the Infrastructure Australia priority list.

Three of these have subsequently attracted Commonwealth funding

1. Ord Stage 2/ East Kimberley Development project to significantly expand the Ord River irrigated agriculture area.
   Under its Nation Building Program the Commonwealth has committed $195 million for social and community infrastructure which complements the State Government’s commitment of $220m for irrigation expansion.
2. Oakajee Port: A $4 billion deepwater port, rail and industrial estate development in Western Australia’s Mid West region.
   Commonwealth has committed 50 per cent of $678m required for common use infrastructure at the port, which will include a breakwater, shipping channel and turning basin, pens for tugs and pilots boats, and associated land based infrastructure.
3. Northbridge Link:  a project to create and develop new commercial and public space, and cross city linkages in the Perth  CBD , by sinking a section of railway line west of Perth Central Station.
   The State has committed $263m to the project and the Commonwealth has agreed to contribute $236m.
   
   Two other proposals remain as priorities, but have not been funded
   
   
4. Pilbara Housing and Indigenous Essential services
   Elements of this proposal are included in the Western Australian Government’s 2009 submission, Pilbara Cities. 
5. Transport Links around Perth Airport
   This proposal has been further developed as Gateway WA, the State’s top priority project for 2009.

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