NSW – State Infrastructure Strategy 2008-09 to 2017-18

The second State Infrastructure Strategy (SIS) has been released. This Strategy outlines capital projects in NSW over the next ten years, from 2008-09 to 2017-18.

The State Infrastructure Strategy links the 10-year State Plan, the 25-year metropolitan and regional strategies, and the infrastructure plans detailed in each state budget. The aim is to facilitate more effective budget planning and prioritisation of the NSW Government’s infrastructure projects. The Strategy is updated every two years.

The second SIS shows that $140 billion is to be invested in new and upgraded infrastructure over the next ten years. This funding is to come from the NSW annual budgets, borrowings, and Public Private Partnerships (PPPs).  It is estimated that between 10 and 15 percent of the State’s future capital expenditure is to be procured through PPPs.

Key projects include:


  • North West Metro trains due to operate between Epping and the Hills Centre in 2015 and between Rouse Hill and the CBD in 2017 ($12 billion)
  • Epping to Chatswood rail line to be completed in 2008-09 ($2.3 billion)
  • Work to continue on the Rail Clearways program ($1.8 billion)
  • South West Rail Link due to connect Glenfield to Leppington in 2012 ($1.36 billion)
  • 626 new air-conditioned rail cars to be introduced from 2010 ( $3.6 billion-PPP)
  • Access improvements to stations under the Easy Access Program to continue ($454 million)
  • 400 new buses by 2012 ($222 million)
  • Safety and security camera upgrade ($32 million)
  • Pacific Highway upgrade to 2009 ($3.9 billion)
  • Hume Highway and South West NSW Program, with duplication of Hume Highway in southern NSW due for completion by the end of 2009 ($1.2 billion)
  • Widening of sections of the Camden Valley Way, the F5 freeway between Ingleburn and Campbelltown, the F3 freeway between Wahroonga and Kariong and the Great Western Highway in the Blues Mountains
  • Continued planning of major road proposals, including the M4 East and F3 to M2
  • Princes Highway program ($345 million)
  • Sydney South West and South Program ($371 million)
  • Sydney Urban Transport program, including services on Victoria Road to be supported by a peak bus lane in Drummoyne and Rozelle, a tidal flow traffic scheme at Drummoyne and an additional bridge over Iron Cove ($545 million)
  • Sydney North Program ($119 million)
  • Great Western Highway Program ($405 million)
  • Illawarra and South Coast Program ($96 million)
  • Central Coast Program ($199 million)
  • Hunter Program ($164 million)
  • North Coast and Northern NSW Program ($273 million)
  • The Ports Growth Plan includes a government and private sector expansion of Port Botany ($1 billion)
  • New intermodal logistics facility at Enfield, and consideration of a facility at Moorebank
  • Private sector construction of a second Bulk Liquids Berth at Port Botany ($51 million)
  • Port Kembla inner harbour development, with new berths and cargo handling facility ($96 million)
  • Newcastle Port Mayfield No. 4 berth ($26 million)

Urban Development

  • Barangaroo development, with an anticipated ten year construction period ($2.5 billion)
  • Sydney’s desalination plant to start operation in 2010 ($1.9 billion)
  • Western Sydney Recycled Water initiative to be operating by 2011 ($220 million)
  • Tillegra Dam project to provide water for the lower Hunter and Central Coast regions from around 2013 ($379 million)
  • Rosehill/Camellia Recycled Water Scheme, with the Fairfield Plant expected to be in operation by 2011 ($100 million-PPP)
  • Purchase of water entitlements for water conservation over four years ($263 million)
  • Sydney Water to expand the residential recycling scheme at Rouse Hill
  • Liverpool to Ashfield pipeline to be commissioned in 2010
  • Sydney Catchment Authority: Metropolitan Water Plan ($276 million)
  • Private sector funding for base load electricity generation by 2013-1014
  • Existing electricity generators to be leased to private operators
  • NSW transmission and distribution businesses to expand and upgrade the electricity network ($10 billion)
  • Delta: Construction of Colongra OCGT Peaking Plant and upgrade at Mt Piper Power Station
  • Eraring Energy: Power station capacity upgrade, ash disposal and cooling water attemperating reservoir
  • Macquarie Generation: Efficiency improvements at Bayswater and Liddell power stations
  • Transgrid: Communications upgrade ($121 million), substation upgrades ($281 million), transmission line upgrades ($858 million), and transformer upgrades ($249 million)
  • Country Energy: new zone substations ($176 million), new high voltage powerlines ($139 million)
  • Energy Australia: Kurnell subtransmission substation ($148 million), City North Feeder development ($119 million), and Kogarah zone development ($102 million)


Over $2 billion is to be spent over the next four years on the public education and training capital works program, which includes the following initiatives:

  • Building Better Schools, upgrading science labs, halls, gyms, toilets and security ($280 million)
  • Connected Classrooms, providing videoconferencing and interactive whiteboards ($119 million)
  • School Sport, to improve sports facilities in government schools ($50 million)
  • Learn or Earn, providing 15 new trade schools across high schools and TAFE colleges ($19 million)
  • Climate Change, providing water tanks for government schools ($20 million)
  • Two new primary schools and one new high school, in addition to the seven already delivered under private financing ($38 million-PPP)
  • Upgrades to government school educational facilities, with 48 new and continuing building projects ($456 million)
  • Major building projects at 27 TAFE colleges ($187 million)
  • ICT Learning Management and Business Reform Project ($153 million)
  • TAFE Online Project ($8 million)


  • Central Coast Health Access Plan ($106 million)
  • Queanbeyan Hospital redevelopment ($51 million)
  • Mental health projects, stages 2 and 3 ($72 million)
  • Newcastle strategy ($189 million)
  • Auburn Hospital redevelopment ($145 million)
  • Oral Health Strategy, with grants provided to local councils to build fluoridation plants ($8 million)
  • Orange Hospital redevelopment ($192 million-PFP)
  • Rural hospital and health services upgrades ($137 million)
  • Liverpool Hospital redevelopment, stage 2 ($392 million)
  • Royal North Shore Hospital redevelopment ($736 million)
  • Shared corporate services ($57 million)
  • Information management and technology ($380 million)


  • Reshape social housing stock over six years to achieve housing of higher quality in closer proximity to services and jobs, with a focus on the elderly and disabled ($3.3 billion)
  • Over 1,200 new dwellings per year between 2008-09 and 2011-12
  • Building Stronger Communities project to support social housing tenants, upgrade housing stock and improve open space areas ($66 million)
  • Redevelopment of the Bonnyrigg Living Communities Project ($733 million-PPP)
  • Redevelopment of the Minto estate over ten years

Ageing, Disability and Home Care

  • Capital spending over four years is allocated $310 million ($115.2 million in 2008-09)
  • Stronger Together, the Government’s 10-year disability plan to enable more people to remain in their home, or have access to a wider range of accommodation options ($35 million in 2008-09)
  • Client Information and Grants Administration Systems improvements ($12 million)


  • Upgrading the Core Operating Policing System and other ICT projects ($107 million)
  • Police radio communications upgrading ($16.6 million)
  • Installation of remote witness equipment in courts ($13 million)
  • Eleven new police stations in four years ($181.1 million), with planning underway for another nine new stations or upgrades in six years
  • Construction of a new prison in Nowra ($59 million)
  • Riverina Juvenile Centre to be redeveloped ($56 million)
  • Department of Corrective Services ICT infrastructure  to be upgraded ($114 million)
  • Continued implementation of the Court Upgrade Program ($271 million)

Future PPPs

The Strategy lists the following projects as potential PPPs:

  • Wagga Wagga Hospital
  • Urban renewal projects
  • Various water recycling initiatives
  • New schools and TAFE facilities in the growth areas of NSW
  • Upgrading of Pacific Highway M4 East extension
  • Intermodal logistics facilities
  • Elements of the North West Metro and other Metro proposals

Link to the State Infrastructure Strategy 2008-09 to 20017-18: http://www.treasury.nsw.gov.au/sis/state_infrastructure_strategy