An inter-governmental committee known as the Project Control Group (PCG) was established to run the process in early 1997. It comprised officials from the Federal, NSW and ACT Governments and an independent chairman, former public servant Ron Brown.
The PCG sought registrations of interest from all organisations interested in participating. Six organisations were shortlisted - Capital Rail, Goninans, Inter Capital Express, Speedrail, Talgo-Medina and Transrapid (Maglev).
In October 1997 the PCG agreed on the contents of a 100-page project brief and circulated it to the shortlisted proponents. The proponents were asked to pay a fee of $100,000 in order to have their proposals considered, and two of them (Goninans and Talgo-Medina) declined. The four remaining proponents lodged their submissions on 14 April 1998.
The PCG established a committee called the Project Evaluation Committee (the PEC) to examine the proposals in detail. The PEC consisted of representatives of the three Governments and technical and financial experts. It also drew on work done by a number of other experts in areas such as economics, patronage estimations, rail operations and design, and the environment.
The PEC scored the proposals according to their compliance with the terms of the project brief and also examined the economic viability and the net cost to Government of the proposals closely.
The PEC found that the Speedrail proposal complied best with the project brief.
The PCG drew on the work done by the PEC and made a number of recommendations to the three Governments, including that Governments agree to a "proving up" or "confirmation" stage with Speedrail.
The Federal Government and the ACT have endorsed the PCG's recommendations. While favouring the proving up of two proposals - Speedrail and Transrapid - NSW has also accepted proceeding with one.
The PCG's task was to identify the best bid and its deliverability- not to rule one rail technology in or out.
What happens from here?
The three Governments will now proceed to a "proving up" or "confirmation" phase with Speedrail.
This is necessary to:
After the "confirmation" phase, Speedrail and the Governments would sign a contract setting out responsibilities and obligations during the construction and operational phases.
NSW and ACT Environmental Impact Statements would have to be prepared, with any necessary involvement by the Commonwealth. NSW and the ACT would also need to give detailed planning approvals. The Federal Government would need to give its approval in matters affecting Commonwealth lands.
The Federal Government would also consider Speedrail's request for tax concessions under the Infrastructure Borrowings Tax Offset Scheme. Land would also have to be acquired for the rail corridor. The three Governments have undertaken to acquire this land under acquisition provisions normally applying to government projects.
How will Governments co-ordinate with each other to oversee
the process from here?
The "proving up" or "confirmation" phase will be managed by the PCG, which has managed the process to date. The PCG canvassed a possible organisation comprising representatives from the three Governments to oversee the project. The Federal Government will consider the best approach.
What is the role of the NSW Government?
The NSW Government announced on 7 July 1998 that it would continue to participate in the activities of the Sydney-Canberra Very High-Speed Train project, but it would not continue to meet one third of the costs of the process. This is a significant change from past practice and is not acceptable in the long-term.
The Federal Government has decided to meet NSW's cost share for the time being, but it intends to recover it in due course.
NSW also demanded that the Federal Government should accept total responsibility for financial and "residual" risk, or risks associated with land acquisition and environmental compliance.
The Federal Government believes NSW should accept that it would be the major beneficiary of the project, including in relation to the proposed upgrading of the Sydney suburban railway network. NSW residents would also benefit from any reduction of traffic on roads and also from reduced aircraft movements between Sydney-Canberra as a result of the project. Therefore, NSW should accept a fair share of any costs and risks in relation to the project.
NSW planning and environmental approvals will be required and acquisition of land in NSW will be necessary.
In addition, the Speedrail trains will use NSW rail track and will require new track on NSW rail land. Many NSW government agencies will need to cooperate with the project.
What is the role of the ACT Government?
The ACT Government will continue to participate fully in the next stage of the evaluation process. The ACT Government will also examine the impacts the Speedrail proposal will have on the ACT and to address the needs of the proponent in confirming and developing the project.
The ACT Government will facilitate opportunities for local and regional businesses to become involved with the VHST project. It will encourage members of the Speedrail consortium to meet with businesses in the Australian Capital Region to see for themselves the skills available in the region in the areas of construction, design, engineering, finance, logistics, environmental management and other key areas.
Will the project qualify for the Infrastructure Borrowings Tax Offsets Scheme?
Speedrail has applied under the Federal Government's Infrastructure Borrowings Tax Offsets Scheme, which the Government is using to promote privately funded public infrastructure. The Speedrail application for assistance will be evaluated.
Will there be a net financial outlay by governments?
The brief made it clear that the project would only proceed on the basis of "no net cost to taxpayers".
The degree to which Speedrail's bid meets the "no net cost to taxpayers" test will be examined closely during the "proving up" stage.
What will happen to the existing railway passenger services between Sydney and
Canberra once the Very High Speed Train starts operation in 2003?
The NSW Government operates existing passenger services. It will be up to the NSW Government to determine how existing passenger services and the VHST complement each other.
What does this announcement mean for the Melbourne-Darwin
inland rail proposal?
ALIGN=JUSTIFYThe Melbourne-Darwin rail proposal has been put forward by a private sector consortium. Governments will consider it on its merits. Because Speedrail will be using standard gauge rail track, its infrastructure would be compatible with other projects using traditional rail technology.
Will the route pass by Sydney Airport?
Yes. Speedrail plans to use the New Southern Railway, which will provide a direct link from Sydney Airport (both domestic and international terminal stations) to the Southern Highlands, Goulburn and Canberra.
Will this project cause the Federal Government to rethink the proposal for a
Badgerys Creek Airport in favour of one built further afield and linked to Sydney by a
VHST?
The Government's preferred position continues to be an airport at Badgerys Creek, subject to the completion of the EIS process. Speedrail have made plans in their proposal for a spur link to connect with Badgerys Creek airport. The Federal Government will evaluate the effect of the construction of the new line on the plans for a Second Sydney Airport.
Why was Transrapid not chosen as a second proponent, as proposed by the NSW
Government?
There was no reason to choose two proponents because the Project Control Group found that the Speedrail proposal was clearly superior to all other proposals.
Assessing two proposals within the "proving up" or "confirmation" stage would be very costly and would add yet another delay to the process.
The core of the Transrapid proposal is a Sydney-Wollongong route, with a possible link to Western Sydney. The provision of transport infrastructure in the greater Sydney area is a matter for the NSW Government alone. There is no reason why the NSW Government and Transrapid should not come to an agreement in relation to rail passenger movements in this corridor without Federal Government involvement.
Why was the announcement regarding the Sydney to Canberra VHST made before a more
extensive study was made of a Sydney - Melbourne VHST?
The private sector has only approached Governments with proposals for a Sydney - Canberra VHST.
Naturally there has been a desire by others to see how the VHST might be extended.
The Prime Minister has indicated he has asked Bob Mansfield to establish a committee to look at how VHST technology can be progressed as part of a national transport strategy that will bring economic and social benefits to Australia.
As Governments indicated it would evaluate proposals from the private sector on the basis of a Sydney-Canberra corridor, it was essential that the integrity of this process be maintained.
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