Metro Tunnel Project

The Metro Tunnel will create a new rail line from Sunbury to Cranbourne / Pakenham, with five new underground stations at Arden, Parkville, State Library (CBD North), Town Hall (CBD South) and Anzac (Domain).


Metro Tunnel Project


Tunnel and Stations PPP - Contract Let

Department or agency

Rail Projects Victoria


The Tunnel and Stations Public Private Partnership (PPP) is the largest package of works for the Metro Tunnel and will deliver the nine kilometre twin tunnels under the CBD, and the five new underground stations. The availability PPP contract with Cross Yarra Partnership (CYP) – comprising Lendlease Engineering, John Holland, Bouygues Construction and Capella Capital – was executed in December 2017.

In December 2020, the State and CYP entered into amending and settlement deeds to resolve various commercial issues related to the project (Amending and Settlement Deeds).  As part of the settlement, the State and CYP have agreed to share the increased costs of the project on a 50:50 basis, being $1.37 billion each, which includes the resolution of the outstanding legal claims. This agreement secures the opportunity for trains to be running through the Metro Tunnel earlier and deliver these benefits for Victorians sooner.

The key aspects of the Amending and Settlement Deeds involve:

  • A revised delivery program and amended completion arrangements for the project;
  • Amendments to the original payment arrangements and additional payments by the State to CYP; and
  • The release and settlement of claims between the parties.

The scope of works for the project remains materially the same, with CYP delivering tunnelling works, five underground stations, station fit-out, mechanical and electrical systems and specific maintenance services for the infrastructure delivered by the package and commercial opportunities at the new stations.  Importantly, the alignment provides the opportunity to connect passengers to Arden, Parkville and Domain precincts via heavy rail for the first time and provide much-needed relief to the heavily congested Swanston Street / St Kilda Road tram corridor, currently the busiest in the world.  

Works on the Tunnels and Stations PPP package commenced in 2018 and is expected to be completed by 2025.

The Metro Tunnel is the largest investment in Melbourne's CBD rail capacity since the City Loop was completed 30 years ago.

The executed contract documents are available here on the Tenders Vic website.

Other Metro Tunnel work pages include Early Works, Rail Systems Alliance and the Rail Infrastructure Alliance.

Further information on these packages is available on the Metro Tunnel website.

Contact information

Contact Metro Tunnel  

Reviewed 24/03/2021
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