Parramatta Light Rail (NSW)

Ensuring the commercials added up to a better business case

In October 2017, the NSW Government announced the preferred nine-kilometre route for Stage 2 of the Project. Stage 2 will run north of the Parramatta River through the rapidly developing suburbs of Ermington, Melrose Park and Wentworth Point to Sydney Olympic Park. It will also provide a new public transport choice to Sydney Olympic Park, a booming sport, entertainment and employment hub.

The final business case was undertaken during 2018, and scoped the key issues and solutions, ensuring a level of detail suitable for an economic appraisal. The next phase required the refinement of the Project design and clarity around the commercial approach. Increased definition was required to effectively finalise the final business case and better inform an investment decision.

Our role

MBB Group played a lead role in this second phase. We led the implementation work stream responsible for the business case development and coordination. This required the integration of all workstreams to ensure the contracting strategy and technical solution was appropriate to the requirements of the economic analysis. Providing clarity for this ensured stakeholders could proceed to the procurement phase quickly once the decision to invest had been made.

The role also included the management of all third parties, inputs to commercial developer agreements, and ensuring precinct and urban outcomes were at the forefront of the analysis.

During the project, key achievements included: 

• Developing the final business case and preparation for an investment decision through the timely development of the implementation strategy and final cost plan
• Ensuring the final cost plan incorporated the definition of third-party agreements, constructability strategy, project delivery strategy, contracting strategy, commercial aspects and contract interfaces with other significant projects
• Leading the planning for the transition of Stage 2 from planning to procurement following a government investment decision.

Our services

• Project Management
• Business Case Writing
• Business case coordination
• Delivery strategy
• Procurement approach
• Third party agreement management
• Integrated development opportunities
• Development partner interface and negotiations
• INSW Assurance review planning and management
• Program and risk management for business case development
• Commercial principles framework
• Market engagement activities

Cross workstream integration and output management