Foreword

Following the State Government of Victoria (Victorian Government) approving Investment and delivery of the much needed North East Link (NEL) to complete the “missing link” in the Melbourne metropolitan freeway network, the Government also approved NEL to be a toll road, with the Victorian Government retaining the entitlement to future toll revenue. In 2020 the State Parliament of Victoria passed into law the North East Link Act 2020 (the Act or NEL Act) which enabled the establishment of the North East Link State Tolling Corporation (STC) in March 2021 as a statutory corporation to hold the entitlement to future toll revenue on NEL.

STC has been established as a commercial entity in the Public Non-Financial Corporation sector to utilize the value of NEL’s future toll revenue stream to meet the significant funding task to build the NEL. STC is the designated owner and operator of the NEL toll road assets and holds the entitlement to the NEL toll revenue stream. The NEL toll road assets are to be designed, built, operated, and maintained through a Public Private Partnership (PPP) contractual arrangement between the Victorian Government and STC jointly as principal and Spark North East Link Pty Ltd (Spark or Spark Consortium) as contractor.

During the construction of the NEL, the North East Link Program, a division of the Major Transport Infrastructure Authority (an Administrative Office within Department of Transport portfolio) is responsible for managing the PPP contract on behalf of the Victorian Government and STC. STC will subsequently assume responsibility for the PPP contract once the NEL is open to road users. During the construction of the NEL, STC will also be separately procuring and delivering the tolling collection capability to ensure the NEL toll road can be opened and tolled in accordance with Government requirements.

On behalf of the Inaugural long-term Board, we thank the Interim Board members for the effort and contribution that they have made in establishing STC, particularly reaching the NEL Central Package PPP contract close and capitalization of the entity.

Responsible Body’s declaration

In accordance with the Financial Management Act 1994, we are pleased to present the North East Link State Tolling Corporation’s Annual Report for the year ended 30 June 2022.