Transport Network Reconstruction Program

1. Transport Network Reconstruction Program Safer Roads Surfaces Disaster recovery panel session 16 May 2011

2. TNR Program vision • Connecting Queensland – the Transport Network Reconstruction Program will restore our flood damaged transport network on time and in a safe and efficient manner.

3. Setting the scene: 2010 – 2011 events 2010 events: • Cyclones Olga, Neville, Ului and Paul Jan-Apr 2010 • SW Queensland Flooding Sep 2010 • SE Queensland Flooding Oct 2010 2011 events: • Queensland Flooding and TC Tasha Jan 2011 • Severe TC Yasi Feb 2011 • Queensland Monsoonal Flooding Mar 2011

4. Damage across the State(at 30 April 2011) • 28% (approx 9,170 km) of road network damaged by 2010 and 2011 weather events – road network suffered more damage than any other asset • 29% of the rail network affected • 89 bridges and culverts damaged • 5% of TMR’s Brisbane cycle network and 5% of Cairns cycle network affected

5. Types of damage Cecil Plains East Pavement damage – approx85%

6. Types of damage Murphy’s Creek Road Damage to bridges, culverts and floodways – approx 5%

7. Types of damage New England Highway, Mt Kynoch Damage due to slope instability – approx 10%

8. Types of damage Esk Hampton Road

9. Summary estimated damage (2011 dollars) $405M $4.36 billion statewide = $161 million per month 2011 events = $2.9 billion $175M $77M $303M $860M $425M $184M $78M $468M $142M $910M $333M

10. Our historical and forecast expenditure (based on 2011 dollars) Current NDRRA Program Order of magnitude 100 times what’s been done before = $161 million per month

11. NDRRA funding Where does NDRRA funding come from? • 75% of works reimbursed by Australian government • 25% of works funded by State government • Emergency Management Australia (EMA) administers NDRRA funding on behalf of the Australian government • Queensland Reconstruction Authority (QldRA) and Emergency Management Queensland (EMQ) coordinate NDRRA funding in Queensland

12. Australian Reconstruction Inspectorate The Australian Reconstruction Inspectorate will: • scrutinise rebuilding contracts • directly inspect projects to ensure they are meeting progress milestones • investigate complaints or issues raised by the public • work directly with state reconstruction agencies to develop contractual frameworks, tendering processes and project management systems • scrutinise requests for reimbursement by local government for projects completed for the purpose of reconstruction • examine high value of complex projects prior to execution

13. State Government response Queensland Reconstruction Authority (QRA) established to reconnect, rebuild and improve Queensland communities and the economy. Six lines of reconstruction: Human and Social Economic Environment Building Road and Transport Communication and Engagement. QRA reports to the Premier. Focus is on performance, quality, safety and value for money.

14. Governance QRA Infrastructure Investment Committee TNRP Steering Committee SPO RPOs Contracting Community Tier 1 / Other / Local Contractors Local Government Roadtek The Community

15. TMR Response • Established Transport Network Reconstruction Program. • Part of TMR QTRIP. • All modes • road • rail • ports • maritime. • Established statewide program office and regional project offices. • TNR Program reports to the Queensland Reconstruction Authority.

16. Statewide Program Office • Key functions of the SPO include: • implementing consistent strategies, systems and processes across the program • statewide coordination of critical contractor and material resources • statewide prioritisation of projects • liaison with key internal and external stakeholders on program issues • program monitoring and reporting.

17. Regional Project Offices • The RPOs will work within existing TMR regional structure to deliver regional reconstruction programs, including: • design and specification of the works • obtain relevant approvals – environmental, cultural heritage • develop, tender and award construction packages • undertake contract management including field supervision, inspection and testing • project cost control, schedule control, progress measurement and reporting at a regional level.

18. Program delivery structure Program Steering Committee Program Director Statewide Program Office Fitzroy Regional Project Office *Darling Downs & Metro Regional Project Office South West Regional Project Office Far North Regional Project Office Central West Regional Project Office Wide Bay/ Burnett Regional Project Office Mackay / W’sday Regional Project Office North Coast Regional Project Office South Coast Regional Project Office Northern Regional Project Office North West Regional Project Office Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor Construction Contractor * Represents 2 regions under 1 RPO

19. Program timeframes • Emergent works: • 60 days from declaration of NDRRA Event • complete end April 2011. • Reconstruction works: • all works to be completed by June 2014.

20. Contracting philosophy • Utilise local capability. • Ensure long term sustainability of local industry. • Utilise major contractors to supplement local industry. • Major contractors bring in staff, facilities and equipment (self sustainable). • All contractors must be prequalified with TMR.

21. Contracting strategy Three-pronged approach: • Roadtek and LGAs (average $20M and $5M respectively) - sole invitation - benchmarked performance. • Competitively tendered packages of values $5M to $50M to small to medium regionally based prequalified contractors - rolling program 2nd and 3rd tranche - benchmarked performance. • Competitively tendered large works packages of values $100M to $250M to large prequalified contractors - rolling program 2nd tranche - benchmarked performance.

22. Regional contractors 20% RoadTek 30% Councils 10% Major contractors 40% Anticipated delivery by sector 2011-2014 (statewide)

23. Estimate of statewide Material and Plant requirements

24. Materials strategy • Leveraging existing TMR statewide supply agreements for bitumen and cement. • Undertaking regional and statewide supply and demand analyses. • Materials shortages potentially delivered under principal-supplied arrangements. • Logistics solutions required. • Immediately pre-invest in and stockpile non-perishable materials.

25. Current status • Regional Project Offices completed logging of damage • Submissions are being developed: > $1.2B (2011) > $1.7B (2010) • RPOs developing works packages and program. • 7 contractor information sessions held. • Emergent Works ≈ $287M completed. • Initial contracts have been awarded ≈ $423M. • Packages with market for tendering ≈ $318M. • Finalised second round of shortlisted contractors for packages > $30M. • Finalise Statewide Program by end June 2011. • Finalising materials procurement strategy and commencing negotiations with suppliers.

26. Questions

27. Current status • 72% (approx 6627km) of damaged roads recovered • 93% of affected rail network reopened • 76% of navigational aids recovered • 72% of damaged bridges and culverts recovered • all ports open • all flood and cyclone-impacted school bus routes back in service • all major freight routes reopened • all of TMR’s Brisbane and Cairns cycle network recovered and operational