Market-led proposals


The Government has released a revised Market-led Proposals Guideline for assessing proposals from the private sector to deliver a project or service which offers something genuinely unique and of value to Victorians.

Market-led Proposals Guideline 

A revised Market-led Proposals Guideline was released by Treasurer, Tim Pallas on 18 November 2015.

Government will only pursue proposals that offer something genuinely unique, deliver on Government priorities, provide benefits to the community and provide value to Victorians.

The Guideline identifies priority areas where Government welcomes proposals from the private sector and a new opportunity for innovative ideas to be submitted without the need for a full proposal has also been introduced.

The revisions to the Guideline also address recommendations made by the Victorian Auditor-General in August 2015 to improve the Guideline and assessment process.

The Guideline does not apply to the routine procurement of goods and services as covered under Part 7A of the Financial Management Act 1994.

The Guideline will continue to be administered by the Department of Treasury and Finance (DTF).

Market-led Proposals Guideline

The five stage assessment process

A five stage process will guide the assessment of market-led proposals:

Preliminary assessment of ideas and proposals. A private party submitting a market-led proposal for Government consideration and DTF determining whether it complies with information requirements and is appropriate for consideration under the Guideline.

Stage One: Preliminary assessment of ideas and proposals. A private party submitting a market-led proposal for Government consideration and DTF determining whether it complies with information requirements and is appropriate for consideration under the Guideline.

Stage Two: Strategic assessment and recommendation. The Government conducting a strategic assessment of the merits of the proposal to determine whether the proposal should proceed, and if so whether this should be through a competitive tender process or through an exclusive negotiation.

Stage Three: Detailed due diligence, investment case and procurement preparation. The Government agreeing with the proponent either the terms of the exclusive negotiation or the approach to a competitive tender process.

Stage Four: Negotiation and assessment of final offer. The Government conducting an exclusive negotiation or competitive tender process to develop a final offer for Government consideration.

Stage Five: Award contract. The Government awarding the contract.

DTF will conduct a Stage One assessment and confirm the outcome in writing within 30 days. If progressing DTF will advise the proponent of any additional information requirements and confirm disclosure of relevant information. 

Pre submission meeting and checklist

At any time, interested parties are able to discuss the Guideline requirements and seek further information from DTF officers responsible for administering the Guideline. These discussions can be via phone call or meeting and can be arranged using the email contact details below.

All parties are strongly encouraged to meet with DTF prior to formally submitting a proposal to discuss key requirements under the Guideline.

Parties should review the Guideline prior to submitting a proposal and have regard to the:

  • submission checklist in Appendix One;
  • key exclusions detailed in Section 1.5; and
  • schedule of  priority areas.  

Submitting a proposal

All proposals should be addressed to the Deputy Secretary, Commercial, Department of Treasury and Finance and submitted electronically to:

Projects under assessment



Digital Train Radio System Upgrade

Stage Three: Investment Case and Procurement Preparation

Proponent: Vodafone and Nokia Networks   

The proposal to upgrade the existing Digital Train Radio System (DTRS) primarily used by Metro Trains was submitted in April 2015 and was approved to move to Stage Three in December 2015.

The proposal involves installation of a new Long-Term Evolution (LTE) 4G network on VicTrack assets, providing an option for the State to transition to an updated communications system.

The upgraded network will also improve Vodafone’s mobile phone coverage  along metropolitan Melbourne’s train lines. 

If the proposal is successful, the upgraded network will provide the core components for a future 4G Digital Train Radio System (DTRS), and has the potential to enable other rail network projects to be deployed onto a 4G network.

Both Nokia and Vodafone are uniquely positioned to deliver the proposed DTRS upgrade.

The market-led proposal will be considered in the context of planning for the end of the current DTRS contract which expires in 2018.

Further information:

Media Release

Probity Plan for Digital Train Radio System Upgrade (DOCX 371kb)



Victoria Police Centre

Stage Four: negotiation and assessment of final offer

Proponent: Australia Post and Cbus Property

The proposal was submitted in May 2015 and was approved to move to Stage Four in February 2016.

Australia Post and Cbus Property propose to fund and develop a new Victoria Police Centre on land owned by Australia Post at 311 Spencer Street, Melbourne. The proposed site would provide Victoria Police with a consolidated police precinct and connection to the City West Police Complex at 313 Spencer St. It would also provide appropriate security for police headquarters.

Victoria Police would enter a long term lease with the proponents for use of the office complex as police headquarters.

The market-led proposal will be considered in the context of planning for end of lease options as Victoria Police’s current lease at the World Trade Centre expires in 2020.

Further information:

Project Description

Media Release

Media Release

Probity Plan for Victoria Police Centre proposal Stage Three (DOCX 329kb)



Western Distributor

Stage Four: Negotiation and assessment of final offer

Proponent: Transurban

Proposal submitted in March 2015 to expand capacity on the West Gate Freeway and provide a new connection from the West Gate Freeway to CityLink. Government progressed the proposal to Stage Four in December 2015.

The $5.5 billion Western Distributor Project includes the Monash Freeway Upgrade and upgrades to Webb Dock.

Key features include:

  • Widening the West Gate Freeway from 8 to 12 lanes between the M80 and Williamstown Road
  • A tunnel under Yarraville and a second river crossing over the Maribyrnong
  • An elevated road along Footscray Road with direct links to CityLink, the Port of Melbourne and the western edge of the CBD
  • The longest managed motorway system in Australia from Geelong to Pakenham
  • 4.5km of new cycling and pedestrian paths including completion of the Federation Trail
  • Widening the Monash Freeway from 8 to 10 lanes between EastLink and South Gippsland Highway, and from 4 to 6 lanes to Clyde Road in Berwick

A full business case was released for the Project in October 2015.

The Government will continue negotiations with Transurban  at Stage Four, with a view to Transurban presenting a final offer for Government consideration, consistent with the requirements of the Market-led Proposals Guideline.

Stage Four involves negotiation of key commercial, technical and planning issues for the Project with Transurban, commencement of downstream procurement for the Project and ongoing assessment of the Transurban proposal under the  Market-led Proposal Guideline.

Further information:

Government's media release

Transurban's proposal overview 

Probity Plan Stage 3 - Western Distributor (DOCX 277kb)        



CityLink - Tulla Widening 

Finalised: Contract awarded on 6 October 2014 and Financial Close was achieved on 30 April 2015

Proponent: Transurban

The CityLink-Tulla Widening project will widen the CityLink and Tullamarine Freeway and introduce a Freeway Management System.  It will build capacity, boost performance and improve safety on one of Melbourne's busiest roads.

The CityLink-Tulla Widening project is proceeding under the Market-Led Proposals Interim Guideline and will be self-funded by Transurban.  When combined with the widening of the Tullamarine Freeway to Melbourne Airport, which is partly funded by the State and Commonwealth Governments, the total cost of the project is around $1.3 billion. Construction on the project will commence in 2015 and be completed in 2018.

Further information:

Transurban Project Overview

Project Overview

Media Release

Finalised projects (for projects that proceeded to Stage 3 and beyond)



Cranbourne- Pakenham Rail Corridor project

Finalised – did not progress at Stage Four (March 15)

Proponents: Consortium sponsored by MTR, John Holland Construction and UGL Rail Services

Proposal submitted in October 2013 for an integrated package of infrastructure including trains, maintenance depot, high capacity signalling and level crossings to increase capacity on the Cranbourne- Pakenham rail corridor.                        



Moolap Saltworks Urban Renewal

Finalised – did not progress at Stage Three (June 15)

Proponent: Ridley Corporation

Proposal submitted in March 2014 to purchase Crown land and redevelop the former Moolap Saltworks site located in the City of Greater Geelong.             



Anchorage on the Sea

Finalised – did not progress to Stage Three (May 2016)

Proponent: Fortan Holdings Pty Ltd

Proposal submitted in September 2015 to build and operate a marina tourist and convention development in Port Phillip Bay.



Project Summary template

A project Summary outlining key aspects of the proposal is to be published following contract award at Stage Five.  A Project summary template is available here Market-led-Proposal-Project-Summary-template.pdf (PDF 156kb)




All questions relating to the Guideline or a potential proposal should be forwarded to:

Deputy Secretary, Commercial 

Department of Treasury and Finance
Level 5 / 1 Treasury Place
Melbourne VIC 3002


Market-led Proposals Guideline

Media Release