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Metro Tunnel Project

The Metro Tunnel will create a new rail line from Sunbury to Cranbourne / Pakenham, with five new underground stations at Arden (North Melbourne), Parkville, State Library (CBD North), Town Hall (CBD South) and Anzac (Domain).

Project

Metro Tunnel Project

Status

Tunnel and Stations PPP - Contract Let

Department or agency

Metro Tunnel Project Office

Description

The Metro Tunnel is the largest investment in Melbourne's CBD rail capacity since the City Loop was completed 40 years ago. Importantly, the alignment provides the opportunity to connect passengers to Arden, Parkville and Domain precincts via heavy rail for the first time and provides much-needed relief to the heavily congested Swanston Street / St Kilda Road tram corridor, currently the busiest in the world.

The Tunnel and Stations Public Private Partnership (PPP) is the largest package of works for the Metro Tunnel and will deliver nine kilometre twin tunnels under the CBD, and the five new underground stations. The availability PPP contract with the Cross Yarra Partnership (CYP) – comprising Lendlease Engineering, John Holland, Bouygues Construction and Capella Capital – was executed in December 2017.

Works on the Tunnels and Stations PPP package commenced in 2018 and are expected to be completed in 2025.

In December 2020, the State and CYP entered into amending and settlement deeds to resolve various commercial issues related to the project. As part of this settlement, the State and CYP agreed to share the increased costs of the project on a 50:50 basis, being $1.37 billion each, which includes the resolution of the outstanding legal claims.

In September 2024, the State and CYP entered into amending and settlement deeds to resolve various commercial issues related to the project. As part of this settlement, the parties agreed to share the increased costs of the project, with CYP entitled to a payment of up to $745 million, subject to the timely achievement of all milestones under the revised delivery program.

The scope of works for the project remains materially the same, with CYP delivering tunnelling works, five underground stations, station fit-out, mechanical and electrical systems and specific maintenance services for the infrastructure delivered by the package and commercial opportunities at the new stations.

The executed contract documents are available on the Buying for Victoria website(opens in a new window).

Other Metro Tunnel work packages include Early Works, Rail Systems Alliance and the Rail Infrastructure Alliance.

Further information on these packages is available on the Metro Tunnel website(opens in a new window).

Metro Tunnel PPP Project Summary - February 2018
PDF 3.43 MB
(opens in a new window)
Metro Tunnel PPP Project Summary Addendum - March 2021
PDF 2.99 MB
(opens in a new window)
Metro Tunnel PPP Project Summary Addendum 2 - November 2024
PDF 267.65 KB
(opens in a new window)

Contact information

Contact Metro Tunnel

Updated