Audit slams procurement of major road projects in Victoria

An audit into the management of major road projects in Victoria has criticised economic estimates and procurement decision making and recommended the adoption of traffic modelling and economic approaches used in the UK and New Zealand.

In the finding prepared by the state Auditor-General, Des Pearson, Victorian Road Authorities are criticised for failing to take account of ‘induced demand’ – the idea that bigger and better roads encourage more traffic – when deciding to build new freeways.

The report also raises concerns about a late 45 per cent increase in costs attributed to the public sector alternative and changes to the calculations used to translate 25 years of payments into a current dollar figure.

Read more here.