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States ready to pull the trigger on 'shovel-ready' projects

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State governments will unveil a list of "shovel-ready" infrastructure projects – from roads to schools and kindergartens – as soon as next week, to help the economic recovery after the coronavirus.

While Infrastructure Minister and Deputy Prime Minister Michael McCormack said the Commonwealth's $100 billion infrastructure fund was still open for business, state governments are expected to announce their own funding schemes.

NSW Treasurer Dominic Perrottet wants to get new projects out the door. Nick Moir

NSW Treasurer Dominic Perrottet and Planning Minister Rob Stokes are working their way through a shortlist of projects which could qualify for $500 million in state funding.

The key criteria for those projects include how many jobs they would create, drive investment and would have the biggest public benefit.

Mr Perrottet said the focus was on cutting red tape and sequencing priority projects to get the maximum bang for taxpayer's bucks.

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"We are completely focused on delivering and I know that even through we've got a great track record here in our state, the government bureaucracies can get in the way of fast tracking these processes," Mr Perrottet told an infrastructure summit last week.

"We've given extra powers to the Planning Minister who can move some of these projects forward as quickly as possible... We will look at the sequencing of projects."

Mr Stokes said the fast-tracking of assessments was to "keep people in jobs, boost the construction pipeline and keep our economy moving".

Victoria will bring forward the construction of new schools and kindergartens for three-year olds and implement a maintenance program for existing schools and kindies.

The Andrews government will also boost the number of level crossing removal projects beyond 40 already due to be completed this year and look to accelerate work on contested projects such as the $15.8 billion North East Link road project and a rail link to Melbourne Airport, as it seeks to kickstart the economy and help the state recover from the coronavirus pandemic.

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Reflecting a similar move to stimulate privately-funded construction projects in the state, Victorian Transport Infrastructure minister Jacinta Allen will next week chair the first meeting of a consultative panel comprising contractors, unions and the state’s Major Transport Infrastructure Agency.

The meeting will help the industry keep working safely and continuing the state’s existing $70 billion pipeline of 119 road and rail projects.

The Palaszczuk government has called for public and private projects in Queensland to be put forward for fast-tracked funding.

State Development and Infrastructure Minister Cameron Dick said all projects were on the table, with an infrastructure industry steering committee being established to short-list projects.

"The Palaszczuk government is examining all shovel-ready projects across the state that could be fast-tracked or moved forward to support the Queensland economy," Mr Dick said.

Infrastructure Partnerships Australia chief executive Adrian Dwyer said smaller projects give the best bang for their buck. Peter Braig

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"It's essential that infrastructure projects continue to be prioritised during the COVID-19 crisis."

Infrastructure experts, such as Customer Stewardship Australia co-founder Garry Bowditch warned about politicians choosing expensive nation-building projects for economic stimulus.

Infrastructure Partnerships Australia chief executive Adrian Dwyer said smaller projects (worth less than $500 million) were the best bet and wouldn't stretch existing capacity.

“In the menu of options available to governments, maintenance and smaller capital projects across transport, health, education, and social housing offer the best bang for stimulus buck because they are labour intensive," Mr Dwyer said.

“For these types of projects, approvals could be sought almost immediately and planning work can be progressed even with current lockdown controls in place.

“Smaller-scale projects under $500 million can also be quickly deployed because they require a different tier of skills and wouldn’t put a major strain on existing capacity."

Mark Ludlow writes on politics, energy and infrastructure based in Brisbane. Connect with Mark on Twitter. Email Mark at mludlow@afr.com
Michael Bleby covers commercial and residential property, with a focus on housing and finance, construction, design & architecture. He also dabbles in the business of sport. Michael is based in Melbourne. Connect with Michael on Twitter. Email Michael at mbleby@afr.com

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