Infrastructure projects will play a key role in rekindling economic growth in New South Wales, potentially boosting the state’s economy by $8.8 billion, according the Property Council of Australia.
The research conducted by the Centre for International Economics and GHD, commissioned by the Property Council, identifies the top ten infrastructure projects to boost the NSW economy.
According to the report, the projects have the potential to create 50,300 jobs.
Property Council of NSW executive director Ken Morrison said currently, the NSW’s economy is in a lacklustre state.
“We need pro growth, wealth building policies to get us out of this economic rut. This must include targeting high value adding infrastructure projects.”
The research examined both public and private ‘economic’ infrastructure projects valued in excess of $100 million over 60 unfunded projects.
Economic modelling was then performed to identify the economic impact of the top ten individual projects and the second ten.
“This research takes an unabashed economic focus.
“We want to see priority given to infrastructure projects which are going to deliver the biggest economic return in terms of boosting growth and generating jobs,” Morrison said.
While the majority of infrastructure projects among the ten are metropolitan based, economic benefits would accrue to the entire State, boosting regional economies.
“You don’t have to live in Sydney to benefit from these infrastructure projects. Making our major cities more efficient benefits the entire State – for instance people living in the NSW far west would enjoy a permanent increase of over 100 jobs if the ten infrastructure projects we’ve identified are delivered,” he added.
The research also highlights the importance of governance arrangements, criticising a lack of transparency and information in NSW in terms of the priority given to projects and clarity about their funding status.
“There is clearly a lack of information in NSW about what infrastructure gets priority and why.
“There should be strategic and transparent planning and decision processes, not ad hoc infrastructure announcements made on the run and focused on marginal seats,” Morrison said.
The NSW Government is expected to release a ten year State infrastructure strategy in the lead up to the June 6 State Budget, updating the State Infrastructure Strategic Plan released in late 2002.
“Government leadership on infrastructure planning and delivery is crucial – it provides a vital signal to the market, shaping investment decisions so that growth is a complementary rather than competing force.
“We’ll be looking to the NSW Government’s strategy to provide certainty about what infrastructure will be delivered in NSW in the medium term,” he added.
Morrison said infrastructure has been a missing link so far in the NSW Government’s Metro strategy and regional planning strategies. The State infrastructure strategy needs to fill this void.
Delivering the infrastructure projects identified in the report will involve participation from the Commonwealth and NSW Governments and the private sector.
“This list of infrastructure priorities will cost $18.5 billion to deliver. Funding for this could come from a mix of sources, including Commonwealth and State Government funding, together with private sector financing,” Morrison concluded.
By Nelson Yap
20 highest ranking unfunded infrastructure projects (10 year timeframe)
Rank | Infrastructure sector | Project name | Cost ($million) |
Top ten projects | |||
1 | Intermodal freight | Sydney Port intermodal freight network | 1 745 |
2 | Passenger rail | North West rail link (Cheltenham to Rouse Hill) | 2 500 |
3 | Freight rail | Southern Sydney freight line | 250 |
4 | Energy | Peak load electricity generator (gas fired) | 1 325 |
5 | Roads | M4 East and M4 to Botany tunnel | 1 485 |
6 | Roads | Pacific highway upgrades | 4 300 |
7 | Buses | Western Sydney bus transitways | 500 |
8 | Passenger rail | Harbour rail link (Eveleigh to Chatswood) | 5 000 |
9 | Water and sewerage | Sydney water recycling projects | 230 |
10 | Energy | Electricity distribution upgrades | 1 200 |
Total estimated cost | 18 535 | ||
Second ten priority projects | |||
11 | Roads | F3 to M2 connection | 1 500 |
12 | Energy | Mount Piper baseload electricity generator upgrade | 200 |
13 | Freight rail | Rail tunnel to improve Newcastle Port link to North West (Liverpool Range tunnel) | 150 |
14 | Passenger rail | Parramatta-Sydney high speed rail | 2 500 |
15 | Freight rail | Inland rail freight route link (Brisbane-Sydney-Melbourne) | 3 500 |
16 | Passenger rail | Parramatta rail link- Section 2 (Epping to Parramatta) | 800 |
17 | Light rail | CBD light rail loop | 230 |
18 | Light rail | Inner Sydney light rail system | 1 400 |
19 | Water and sewerage | Southern and Western suburbs ocean outfall sewer | 200 |
20 | Rail Passenger and freight | Sydney to Warnervale high speed passenger rail link | 650 |
Total estimated cost | 11 130 | ||
Source: CIE.
