The problem with PPP's is that private businesses are always able to negotiate a far better deal for themselves than the government. If public infrastructure is going to be built, the government should pay for it, contract out the actual work, then collect the income from it. Of course, in the case of roads it makes far more sense to tax petrol to raise the extra revenue than to set up toll booths. For some reason haveing to stop to pay a toll if you use certain roads is more popular than an equal petrol tax for all road users, even though heavy traffic makes more efficient use of roads on a cost per user basis.

Tunnel drama won't hit PPPs, says Iemma

http://news.smh.com.au/tunnel-drama-wont-hit-ppps-says-iemma/20080319-20cf.html

NSW Premier Morris Iemma denies the government's poor record in public-private partnerships (PPPs) will lumber it with the entire $12.5 billion bill for Sydney's metro rail system.

Mr Iemma said his government was in a financial position to fully fund the project but wanted to test the market in the private sector.

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Lane Cove Tunnel 'no white elephant'

http://news.smh.com.au/lane-cove-tunnel-no-white-elephant/20080319-20en.html

NSW Premier Morris Iemma has rejected suggestions Sydney's Lane Cove tunnel is set to become the city's latest infrastructure white elephant.

Two key shareholders in the tunnel on Tuesday announced they were set to write off the bulk of their investments in the tunnel, saying volumes of traffic had been significantly lower than expected.

Cheung Kong Infrastructure (CKI) announced it will write down its remaining stake in the tunnel from $113 million to zero.

That prompted Leighton Holdings to state it had made an allowance to write down its $117.5 million share by 70 per cent.

The decisions follow the failure of the Cross City Tunnel, which opened in 2005 but went into receivership just over a year later after failing to reach traffic forecasts.

This metro sounds very suspect.  There will be many kms of underground tunnels, built directly under whole suburbs.  It doesn't take much imagination to consider the disasters that will possibly occur as the foundations of homes affected are shaken and blasted by this tunnel construction.


yes indeed, and with a huge increase of salination across oz it very probabley will end up a maintenance nightmare

watched a proggie (abc) on tv a cpl of years ago and they showed it's endemic to all of developed oz