The $2.2-billion in federal funding for Victoria's Suburban Rail Loop megaproject has finally been approved.
Federal infrastructure minister Catherine King announced that her department had approved the provision of the funding.
The funding had been agreed to by the Federal Government but was contingent on the Victorian Government providing a business case.
“I have released the $2.2 billion,” King told media.
“Infrastructure Australia and my department have now assessed that [business case] and recommended that money be released to the Victorian Government on the basis of very specific things that it will be going towards.”
The Suburban Rail Loop will connect suburbs across Melbourne with new railway lines and includes a connection to Melbourne’s Tullamarine Airport, the Airport Rail Link.
Victoria wants more money for the project, which has an estimated cost of $35 billion for its first stage.
Tunnel-boring machines have been ordered and work to prepare for the tunnels begun.
The Victorian Government is keen for high-density housing to be developed around several activity centres that include future Suburban Rail Loop stations.
King said that the $2.2 billion was an election promise that had been kept but further funding would depend on Infrastructure Australia’s advice.
“I’ve been pretty consistent ... to say there are still some hurdles the Victorian Government will need to overcome ... particularly the costings around value-capture before the Commonwealth can make another investment,” King said.
