For three years now, the Victorian and federal governments have been locked in an impasse over funding the Suburban Rail Loop.

Increasingly, the state government is voicing its frustration at Canberra’s refusal to pay up, but the main reason purse strings are being clutched is simple: the state government’s business plan – and what it lacks – is of major concern to Infrastructure Australia, the independent body advising the federal government.

The Suburban Rail Loop business plan has glaring issues.Credit: Joe Armao

For large-scale infrastructure projects such as the SRL, a business case is the cornerstone document used to assess whether a project should proceed or not. Generally, these documents address three fundamental questions: Does the project have merit? Is the agency overseeing it equipped to manage the risks? What will it cost, and are the benefits worth the expenditure?

I have spent my career preparing and analysing these plans, and I’ve reviewed the SRL business case. The issues are glaring. There is an evaluation of the wrong project, a failure to assess project alternatives, inflated economic benefits, and inadequate planning for risks – to name just a few.........

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