The cost-benefit ratio for the first two sections of the project is between 0.6 and 0.7, the report says. It means that for every dollar spent on the project the state would reap between 60 to 70 cents. | Ash_McMillan
The report measures the project’s cost-benefit ratio for the first two stages to be between 0.6 and 0.7.The Andrews government expects the first trains to run on the line in 2035.Suburban Rail LoopThe budget office report, released on Saturday, has calculated the social cost-benefit ratio for the first two stages of the rail loop –– and found it falls short, casting doubt on the project’s value.
“This means that continued investment in SRL [Suburban Rail Loop] East and North... is likely to result in a net social cost,” the document stated. When the 90-kilometre rail project was announced by the state government in 2018, initial projections slated a total cost of $50 billion to build the loop running from Cheltenham to Werribee.In Saturday’s report, the budget office estimated the cost to build and operate tracks between Cheltenham and the Melbourne Airport at just over $200.2 million to 2084-2085. The estimate includes asset works of more than $125 million and operating expenses of $75.2 million.
“... Our evaluation is more indicative of whether it is in the social interest to continue to build and operate the SRL [Suburban Rail Loop], rather than an assessment of whether it is financially or economically viable,” the parliamentary budget office stated.
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