The Victorian premier, Ben Carroll, has made an about-face, committing to pushing ahead with the first stage of the Suburban Rail Loop while promising to reduce its total cost by about 6%.
He will also announce changes to the scope of the first stage of the project on Tuesday , known as SRL East – a 26km stretch of tunnels between Cheltenham and Box Hill – estimated to save $1bn, and an “independent, technical review” to identify a further $1bn in savings.
The Suburban Rail Loop Authority, which is the statutory agency responsible for planning and delivering the project, will be folded into the Victorian Infrastructure Delivery Authority. The move was already under way prior to Carroll becoming premier four weeks ago.
No further contracts will be awarded until the review is complete but the government has stressed all current works will continue, with tunnelling between Burwood and Glen Waverley set to begin soon.