Auditor-General concerned by light rail benefit promises

Share Canberra's trusted news:

capital metro feature crop

THE ACT Auditor?General Maxine Cooper has presented a performance audit report on the Initiation of the Light Rail Project.

“The Capital Metro Light Rail Project’s governance, administrative and project management framework is sound and generally accords with better practice, which positions it to meet the challenges of implementing light rail,” Maxine said.

“However, benefits management needs to be given priority and a whole?of?government Benefits Realisation Plan, and associated documentation, developed and implemented to guide the management and realisation of the project’s benefits.

“Benefits management is an important project management practice that identifies, tracks and delivers the measurable improvements generated by projects.

“Benefits management is important given that, in considering only the project’s transport benefits the benefit?cost ratio is 0.49, with an estimated 49.3 cents in transport benefits gained for every $1 spent; and considering transport benefits and wider economic benefits (including land use benefits), the benefit?cost ratio is 1.20, with an estimated $1.20 in benefits for every $1 spent.

“The benefit?cost ratio of 1.20 needs to be used with caution as there is a lack of an agreed methodology and robust data in Australia for calculating wider economic benefits (including land use benefits). In the 1.20 benefit?cost ratio approximately 60 percent of theproject’s benefits are not transport?related. This is large compared with other transport infrastructure projects for which information was publicly available.

“Realising the project’s benefits will involve a wide range of activities related to land development decisions undertaken by ACT Government; ticketing and fare setting; bus and park & ride integration; parking charges; value capture activities; signalling priorities; the location of ACT Government staff in the corridor; and other undertakings to promote economic activity in the ACT.

“While some actions may have commenced to realise benefits, without a Benefits Realisation Plan there is a lack of transparency and accountability’ said Dr Cooper.

Who Can You Trust?

In a world beleaguered by spin and confused messages, there's never been more need for diverse, trustworthy, independent journalism in Canberra.

Who can you trust? Well, for more than 25 years, "CityNews" has proudly been an independent, free, family-owned news magazine, serving the national capital with quality, integrity and authority. Through our weekly magazine and daily through our digital platforms, we constantly and reliably deliver high-quality and diverse opinion, news, arts, socials and lifestyle columns.

If you trust our work online and believe in the power of independent voices, I encourage you to make a small contribution.

Every dollar of support will be invested back into our journalism so we can continue to provide a valuably different view of what's happening around you and keep free.

Click here to make your donation and you will be supporting the future of journalism and media diversity in the ACT.

Thank you,

Ian Meikle, editor

Previous articleState of the states / Australian Capital Territory voters face two elections in 2016
Next articleOpinion / Why it’s time for last orders at 3am

Leave a Reply