Early planning In 2008, transport planner Sir
Rod Eddington handed down the findings of
a report into Melbourne's east–west transport needs, following a commission by the
Brumby Government. The Eddington Report recommended two key projects in the city centre: an
East West Link road tunnel providing an alternative cross-town route to the
West Gate Bridge, and a rail tunnel from
Footscray to
Caulfield via the CBD. According to Eddington, the tunnel would increase the capacity of the central rail network by removing some trains from the City Loop, allowing future extensions to the suburban lines. In December that year, the project was incorporated into the government's
Victorian Transport Plan, to be built in two stages: the first from Footscray to St Kilda Road, and the second along the rest of the route. Following the
2010 Victorian election, the newly elected
Baillieu Government abandoned the Brumby transport plan, and announced that each of the projects would be individually reviewed, some by the newly created
Public Transport Development Authority. Then, in its 2012 budget, the government announced a revised version of the tunnel plan: a "Melbourne Metro" from
South Kensington to
South Yarra along a similar city centre route to Eddington's original proposal. The revised project included five underground stations, and was submitted to
Infrastructure Australia where it was deemed "ready to proceed" and was listed as the highest-priority infrastructure project in Melbourne. A business case was quickly developed based on the constraints of the existing rail system, which was rapidly approaching its maximum capacity. The
Department of Transport commenced geotechnical drillings and route investigations. A dispute between the federal and state government over the funding for the tunnel intensified in 2013, with the approach of
that year's federal election. The state budget in early May revealed that none of the $50 million in planning money allocated the previous year had been spent, with new premier
Denis Napthine deferring the project in favour of the
East West Link. Despite this, with the release of the
2013 federal budget a week later, the
Gillard government committed $3 billion to the project on the condition that the state match the contribution. The remaining money was to be raised by a
public–private partnership, with the possibility that the contractor could take over running of the line in addition to its construction. However, federal opposition leader
Tony Abbott declared that if he was elected in the
2013 federal election, no Commonwealth money would be spent on urban passenger rail, and that any commitment to the Melbourne Metro tunnel project would be revoked. Meanwhile,
Public Transport Victoria's
Network Development Plan – Metropolitan Rail (NDPMR), released in early 2013, identified the Metro Tunnel as the centrepiece of a 20-year strategy for improving the Melbourne suburban rail network. Public Transport Victoria argued that any expansion of the system was "impossible" without vastly improved capacity in the core of the network. The NDPMR envisaged the tunnel's construction taking place from 2017 to 2022, enabling the segregation of the rail system into four independently operated lines, each with their own routes through the CBD. It also outlined a
service plan for the tunnel, proposing an initial
peak hour flow of 8 trains per hour in each direction.
Alternative route In February the following year, the state government announced that it was considering alternative alignments for the tunnel, because of concerns that
cut and cover construction in
Swanston Street would result in a massive disruption to traffic and retail activity for an extended period of time. At the launch of its 2014 budget, the Napthine government announced that the Metro Tunnel project would be abandoned and replaced with an alternative proposal called the
Melbourne Rail Link. The MRL route consisted of a tunnel from South Yarra to
Southern Cross via
Kings Domain and
Fishermans Bend, where it would join existing City Loop tunnels reconfigured for
bidirectional traffic. Furthermore, the government promised that the realignment would enable a
Melbourne Airport rail link to be constructed from Southern Cross at the same time. Ultimately, the reconfiguration of the rail network was to have produced similar operational outcomes as the Melbourne Metro plan, with a Sunbury-Dandenong corridor operating directly between Southern Cross and Flinders Street in both directions, but with an additional end-to-end line from
Frankston to
Ringwood via the new tracks. According to government ministers, the Melbourne Rail Link offered greater capacity increases and less disruption during the construction phase than existing plans. However, it was heavily criticised, including by
Lord Mayor of Melbourne Robert Doyle, who described the route change as a potential "100-year catastrophe" because of its failure to service the Parkville medical and research precinct. Furthermore, the government revealed in the days following the budget that it had not produced a
business case for its plan, and that the decision had been taken primarily on the basis of a "common sense" need to service its urban redevelopment project at Fishermans Bend. Other concerns emerged in the months following the budget, with experts publicly questioning whether the Napthine government had committed sufficient funding, and whether the proposed tunnels could be engineered to successfully avoid the main Melbourne
sewer.
Andrews government proposal By November, as the
2014 Victorian state election approached, the rail tunnel had become a major point of contention in the campaign, with the government prioritising the East West Link (EWL) road tunnel instead.
Labor opposition leader
Daniel Andrews promised that “under no circumstances” would a Labor government build the EWL if elected. As an alternative, Labor proposed reinstating the original Metro Tunnel plan, which retained the support of senior public servants in the
Department of Transport, Planning and Local Infrastructure. Departmental analysis indicated that the original Metro Tunnel route performed substantially better than the EWL in a
cost-benefit analysis, although no such calculation had been performed for the proposed
Melbourne Rail Link route. On the eve of the election, it emerged that the Abbott federal government had redirected $3 billion in funding to the EWL, and that they would refuse to allow it to be used for the Melbourne Metro project. A Labor state government under Premier
Daniel Andrews was elected the following day, and immediately set about cancelling contracts for the EWL. At the same time however, new Treasurer
Tim Pallas conceded that it would be "difficult" to deliver the Metro Tunnel given the complexities of the funding dispute. In February 2015, the
Andrews government announced $40 million in immediate funding to establish the
Melbourne Metro Rail Authority, in order to commence detailed planning work along the original route, and promised a further $300 million in its upcoming budget. It also revealed that a $3 billion
line of credit originally established to fund the EWL would be redirected to the Melbourne Metro project. A timeline was provided, with construction expected to commence in 2018 and the tunnel to be open in 2026. Meanwhile, the federal government continued to refuse to fund the project, which led some observers to describe Andrews' commitment as a "significant political risk".
Funding On 15 April 2015, the government announced that the MMRA had selected a route along Swanston Street as the preferred alignment for the project. The announcement revealed that routes under
Elizabeth Street and
Russell Street had been considered but were rejected on the basis of engineering difficulties and lack of connectivity respectively. For similar reasons, the route selected along Swanston Street was a shallow tunnel above the City Loop and
CityLink tunnels, at a depth of , and was therefore to be constructed using cut-and-cover methods. Further concerns about the proposed route emerged when it emerged that the tunnel would not connect to
South Yarra station and that the Pakenham and Cranbourne services would bypass the station entirely once the tunnel opened. Discussions about the funding of the project continued into late April. The state government acknowledged that the Abbott federal government would not make any contribution to the project, but stated that it remained "hopeful" a future federal government would change the policy. Towards the end of the month, the Andrews government announced that $1.5 billion would be allocated in the upcoming state Budget for the full cost of pre-construction works, land and property acquisition, and detailed route investigations, on top of the already announced money for planning. Among the work funded was the drilling of 140 bore holes to establish ground conditions along the route. However, questions remained about the state government's capacity to fund the remainder of the project, and it was reported that no business case had been completed, despite this being Labor's key objection to the Melbourne Rail Link plan when in opposition. A levy on land tax for commercial properties benefiting from the tunnel, similar to that used on the City Loop and on the contemporary London
Crossrail project, was proposed as one possible solution. At the same time the funding announcement was made, the MMRA announced it had appointed technical and planning advisors for the project.
Detailed planning After the state Budget in May, details gradually emerged of the revised business case for the tunnel, including specific routes and tunnel options. The government ruled out an interchange to the
existing railway station at
South Yarra because of its expense, a move criticised by opposition parties and public transport advocates. Investigative drilling along Swanston Street began in early June, with the government announcing later in June that negotiations with the financiers of the cancelled EWL had concluded, enabling the $3 billion credit facility to be redirected to the Metro Tunnel. In August,
tunnel boring machines were announced as the preferred engineering option for the sections of the project under the Yarra River. The
September federal Liberal leadership spill, which saw
Malcolm Turnbull replace Abbott as prime minister, led to new hope for federal funding of the project when Turnbull announced he would consider all transport projects on their merits through
Infrastructure Australia. , Melbourne's main civic spine and busiest tram corridor. In October 2015, the government announced it had abandoned earlier plans to run the tunnel 10 metres beneath Swanston Street and above the existing
City Loop tunnels and instead place parts of the project underground between
CBD North and
CBD South stations. The decision was made to reduce the disruption to trams services and traders along
Swanston Street and to avoid removing critical utilities, such as telecommunication lines, from beneath the street. The cost of the change was disputed, with the government claiming the additional tunnelling expense would be met by the savings of services remaining in place, but opposition parties arguing the change could be up to $1 billion more expensive. With the key engineering details in place, the scope of the project and its associated disruptions gradually became public. The government first announced in October it would
compulsorily acquire the properties of 63 households and 31 businesses at several locations on the tunnel route. Later, in November, road closures for up to five years were announced near construction sites, and specific station designs were released for the first time. The first package of works, a $300 million contract for site preparation and services relocation, was opened for tenders by MMRA on 25 November.In February 2016, the full business case for the project was released which detailed its design. Early that year, geotechnical drilling was extended to the
Yarra River, as political arguments continued over the Metro Tunnel's funding arrangements. Having selected a public-private partnership model based on long-term maintenance and commercial opportunities for investment, and with a new business case released publicly, the state government continued to request a significant federal contribution, but the Turnbull government said it would not consider the project until it had been independently analysed by
Infrastructure Australia. Despite the ongoing dispute, a shortlist of bidders was announced in late February for the early works package, and the construction timeline continued to suggest a 2016 start to works. In the 2016 state budget, Premier Daniel Andrews and his
Treasurer Tim Pallas declared that the state would bear the entire cost of the project in lieu of federal funds, using a combination of increased revenues from a strong property market, and an increase to the states net debt over the following decade. The
federal budget released in 2016 did however include $857 million redirected from other infrastructure projects to the tunnel, however, the funds did not represent additional support to Victoria but rather a reallocation of existing contributions.
Contracting In June 2016, the
John Holland Group was awarded a $324 million contract which includes the excavation of deep open shafts adjacent to Swanston Street to enable the underground construction of the two new city stations, and the relocation of up to 100 subterranean utilities. Utility relocations started in July 2016. in the domain precinct. Acoustic sheds were installed at Metro Tunnel station precincts to reduce noise and dust. A shortlist of preferred bidders for the project's main contract, the "tunnel and stations" public-private partnership, was released in August, along with further details of the MMRA's recommended engineering solutions. The bidders were three consortia composed of engineering, construction and finance companies: Continuum Victoria, consisting
Acciona Infrastructure,
Ferrovial Agroman,
Honeywell,
Downer Rail, and
Plenary Group; Moving Melbourne Together, made up of
Pacific Partnerships,
CPB Contractors, Ghella,
Salini Impregilo,
Serco, and
Macquarie Capital; and Cross Yarra Partnership, including
Lendlease,
John Holland,
Bouygues, and Capella Capital. At the same time, the MMRA exercised its powers of
compulsory acquisition to acquire
City Square from the City of Melbourne, ahead of the original schedule. Over the following months, further details of the construction process were made public, including long-term road closures and the precise location of construction sites. The revelations included the MMRA's concerns about the impact of tunneling on the structural integrity of CBD buildings, including
Federation Square and
St Paul's Cathedral. In December 2017, the Victorian Government selected the Cross Yarra Partnership to deliver the "tunnel and stations" public-private partnership. == Construction ==