- Albury Wodonga Military Area Redevelopment project
Department of Defence
6.1The Department of Defence (Defence) seeks approval from the Committee to proceed with the proposed Albury Wodonga Military Area Redevelopment project.
6.2The aim of the project is to sustain existing personnel throughput and increase the trained permanent workforce of officers and aviators in technical and logistics disciplines and trades.
6.3Defence states this objective will be delivered by the upgrade and replacement of site-wide infrastructure (electrical, water supply, information and communications technology, wastewater, stormwater, gas, roads and footpaths), living-in accommodation, messing, training facilities, and the demolition of redundant facilities.
6.4The estimated cost of delivery of the project is $395.7 million (excluding GST).
6.5The project was referred to the Committee on 27 March 2024.
Conduct of the inquiry
6.6Following referral, the inquiry was published on the Committee’s website and via media release.
6.7The Committee received two submissions, one supplementary submission and one confidential submission. A list of submissions is available at Appendix A.
6.8On 12 June 2024, the Committee conducted a site inspection of the Albury Wodonga Military Area.
6.9On 13 June 2024, the Committee held both a public and in-camera hearing at Carriage House, East Wagga Wagga. A transcript of the public hearing is available on the Committee’s website.
Need for the works
6.10Soldiers and officers undertake career, technical, logistics and trade training at the Albury Wodonga Military Area. The annual training throughput at Albury Wodonga Military Area is planned to increase over the next decade, with an anticipated peak additional trainee throughput of approximately 300 personnel per annum in 2032, before reducing to a long-term steady additional trainee throughput of approximately 180 personnel per annum from 2040.
6.11Defence believes investment in modern, contemporary, and fit-for-purpose facilities in which to live, train and work, is critical to the retention of current and future Defence workforce.
6.12Defence points out that the Defence Strategic Review 2023 recommends ‘investing in the growth and retention of a highly skilled Defence workforce’ and suggests the proposed project will assist in the achievement of this recommendation.
6.13At the public hearing, Defence further explained how the proposed works will meet the recommendation of the Defence Strategic Review 2023:
The Albury-Wodonga military area undertakes training of up to 5,000 students every year. It is important to ensure that we provide very good-quality-standard living and working facilities for our trainees. After their initial recruit training that takes place at Blamey Barracks at Kapooka, near Wagga, it is their next exposure to life in the Defence Force, and we want to ensure that their initial experience of life in the Defence Force is a favourable one, and that comes with providing good facilities, good infrastructure for them to live, work and train in in particular. It comes down to the Defence value proposition that we offer to our trainees before they then go out to operational bases once they've finished their training.
6.14In addition, there has not been a significant redevelopment of the Albury Wodonga Military Area for several decades, meaning many of the facilities are reaching end of life.
Options considered
6.15Defence has undertaken master planning, site investigations, stakeholder consultation, whole-of-life cost analysis and design development to establish the capital facilities and infrastructure works required to address the project need. The following options have been identified:
- Option 1 (minimum scope – costed at $287.6 million): this option would address all high and very high infrastructure risks and would include the provision of new training level 1 living-in accommodation (192 beds), a new cadet and army reserve multi-user depot and the demolition of redundant facilities. This option would not meet the minimum viable capability requirements for base functions and it would also not support workforce growth.
- Option 2 (high priority scope, costed at $401.3 million): this option would address all high and very high infrastructure risks and would include the provision of new training level 1 living-in accommodation (192 beds), a new cadet and army reserve multi-user depot, the renovation of existing living-in accommodation (729), refurbishment of the officers’ and sergeants’ messes and the demolition of redundant facilities. This option would not meet the minimum viable capability requirements for base functions and would not support workforce growth.
- Option 3 (full scope, costed at $713.3 million): this option would address all high and very high infrastructure risks and would include the provision of new training level 1 living-in accommodation (480 beds), a new cadet and army reserve multi-user depot, the renovation of existing living-in accommodation (729), refurbishment of the officers’ and sergeants’ messes and the demolition of redundant facilities. This option would support workforce growth, it would also exceed the minimum viable capability requirements for base functions.
- Option 4 (ADF workforce growth integration, costed at $395.7 million): this option would address all high and very high infrastructure risks and would include the provision of new training level 1 living-in accommodation (240 beds), a new cadet and army reserve multi-user depot, a replacement combined mess, a new basic training facility (55 personnel capability) and the demolition of redundant facilities. This option meets the minimum viable capability requirements for base functions, with some residual capacity and condition risk, and supports workforce growth.
- Option 4 is the preferred option.
Scope of the works
6.17The scope of works of Option 4 includes:
- upgrade of site-wide infrastructure, including electrical, water supply, ICT, wastewater, stormwater, gas (minor works), roads and footpaths
- a new Base entry
- new Training Level 1 Living-In Accommodation (240 beds)
- new Training Facilities, including a Cadet and Army Reserve Multi-User Depot and Basic Training Accommodation
- a new Combined Mess
- rooftop solar panels to suitable facilities
- demolition of redundant facilities.
- Defence has identified the following below the line items which are currently unfunded. If possible, Defence will fund them from savings made during the project:
- additional upgrade of engineering services (electrical, water supply, ICT, wastewater, stormwater)
- additional new Training Level 1 Living-In Accommodation (144 beds)
- a new warehouse and workshop facilities
- additional demolition of redundant buildings.
Community and stakeholder consultation
6.19Defence has developed a community consultation and communications strategy that allows residents from the Murray and Hume communities and other interested stakeholders to provide input into, or raise concerns relating to, the proposed works.
6.20Defence has, or will, consult with the following stakeholders:
- Federal Member for Farrer, Hon Sussan Ley, MP
- Federal Member for Indi, Dr Helen Haines, MP
- Federal Member for Eden-Monaro, Hon Kristy McBain MP, Minister for Regional Development, Local Government and Territories
- State Government Members:
- New South Wales State Member for Albury, Mr Justin Clancy, MLA
- Victorian State Member for Benambra, Mr Bill Tilley, MP
- Local Councils and groups:
- Albury City Council
- Wodonga Council
- local Indigenous groups
- local authorities
- local community, business groups and businesses.
- The new front entrance onto South Bandiana will require an easement to be created over the Wodonga Parklands lease rail easement (part of the Wodonga to Cudgewa High Country Rail Trail). The land is owned by VicTrack and is managed by Wodonga Parklands. Consultation with both VicTrack and Wodonga Parklands regarding the works is ongoing.
- Defence advertised community information sessions in local newspapers and through letter drops distributed in a 5 to 10 km radius from the Albury Wodonga Military Area. Four community information sessions were held between 4 December 2023 and 15 May 2024 in Wodonga. The sessions had 32 attendees, who were a mix of local residents and local business representatives. One was from the office of a federal member.
- The following concerns were raised by participants:
- Impacts to the Avenue of Honour trees
- Opportunities for local industry participation in the proposed works
- Availability of the local market to support the proposed works
- Impacts on apprentice supply for local business and trades
- Training opportunities through the Program
- Procurement packaging strategy
- Questions around Industry Capability Network
- The Project’s benefits to Albury
- Excitement around the Program and the requirements to use local resources
- Impacts to property prices in the surrounding region.
- Construction impacts
- Growth of the area adjacent to the Albury Wodonga Military Area as a result of the Program
- Increased traffic safety as a result of the Program
- Support for the changes to the road design out the front of the entry to the base
- Curiosity about the Program
- Interest about the trees on base and any potential removal through construction
- Questions around whether the work will happen at South or North Bandiana
- Traffic on Murray Valley Highway and speed
- Construction phasing
- Number of personnel who will live on the base after the works are completed
- Support for the Program and relief to hear Albury Wodonga Military Area would remain and not be relocated.
- At the public hearing, Defence spoke about public concern around the Avenue of Honour trees, which are a row of pin oak trees planted in honour of the Vietnam War. The works will see some of these trees removed from their current location. Defence is in continued consultation with the local veteran’s group in order to reach a solution that satisfies the group’s requirements and makes the trees more accessible to the public. Defence explained:
The pin oak trees have been planted by a volunteer organisation referred to as Treenet for an avenue of honour. Those trees have been planted within the median strip through there. They have been assessed by the road authority, VicRoads, to come up with the best road safety solution for the new entry to South Bandiana, and the proposed outcome is to have the entry at the existing North Bandiana entry to utilise that existing signalised infrastructure. The new turning lanes would require the removal of 13 of those pin oak trees. Pin oak trees are not a native species. We've also identified three possible alternative solutions for those pin oaks to be replaced, and there are some more suitable locations that the public can actually more readily access than the median of that busy road to be able to enjoy the memorial that's intended for that location.
Impacts of the works
6.25Defence has identified the following potential impacts:
- Traffic, transportation and road: The existing entry to the South Bandiana Base is a Work Health and Safety risk. The entry is particularly dangerous for vehicles crossing the Murray Valley Highway to access or egress the Base. Vehicles are required to cross traffic on the Murray Valley Highway in an 80 km/h zone without the assistance of traffic signals. The risk is exacerbated for vehicles turning right when leaving the Base, with vehicles required to turn left and travel 650 metres north west, then use a roundabout to return to the Murray Valley Highway and travel south east towards North Bandiana, East Bandiana and Latchford Barracks, as well as other non-Defence locations, such as Tallangatta. The proposed works will relocate the entry onto South Bandiana to an existing signalised intersection on the Murray Valley Highway to mitigate this risk.
- Contamination: Defence advises that as part of the contractual obligations of the project, the managing contractor will undertake investigations during the design phase of the project to understand the type and location of potential contaminants prior to construction. A construction environmental management plan will be developed to ensure processes and controls are in place for identification, management, disposal, and re-use of contaminants and contamination waste. Defence notes that PFAS contamination migration offsite is a known issue, and that it is being managed by a PFAS management area plan.
- Short-term living accommodation: The managing contractor considered available accommodation for temporary workers and has determined that the Albury-Wodonga region has adequate stock, without the project negatively impacting short-term tourist accommodation.
- The proposed new entry to South Bandiana will require the removal of a small area (0.48 hectares) of threatened ecological community of White Box-Yellow Box-Blakely's Red Gum Grassy Woodland and Derived Native Grassland. The project’s environmental report has assessed the impact of the works to be ‘not significant’. Additionally, the Department of Climate Change, Energy, the Environment and Water has approved the works with a Part 13 Permit for vegetation clearance. At the public hearing Defence explained how the design minimised the impact from the proposed works on this threatened ecological community:
During the design development, we initially had a design for the new entry which would have represented the removal of, potentially, 3½ hectares of that threatened species. We've refined that design and got that down to a more efficient outcome of 0.47 hectares, which is what the proposal that went to DCCEEW was. That's what's been endorsed and supported as not having a significant impact on the environment.
6.27This project is one of three large Defence redevelopment projects occurring simultaneously. When asked about how the proposed works may impact the local construction industry, Defence provided details of how capacity had been considered in the timeframe of the proposed works:
Because of all the work happening in the Riverina region around the same time, including a new major hospital for the Albury-Wodonga area, the project team has extended the construction schedule out to 5½ years. Typically, you can do this amount of work in a shorter period of time; however, that takes into account the capacity of the local region to provide the trades.
Cost of the works
6.28The estimated total capital delivery cost of the project is $395.7 million (excluding GST). This includes management and design fees, construction, information and communications technology, furniture, fittings, equipment, escalation, and contingencies.
6.29Defence notified the Committee that the proposed works will lead to an increase of the Base’s operating and sustainment costs. This cost is specifically attributed to the need for additional maintenance, cleaning and utilities expenses that will be required to operate and maintain the proposed new facilities and infrastructure.
6.30The project will be delivered together with the RAAF Base Wagga Redevelopment Project and the Blamey Barracks, Kapooka, Redevelopment Project, under a single construction program to maximise construction and cost efficiencies. Each project will be referred to the PWC separately.
Revenue
6.31There will be no revenue generated by this project.
Public value
6.32Defence has assessed public value, opportunities, and benefit to the community as a result of the proposed works and these are listed below:
- Economic impacts – the project will support construction and professional services sectors in the Murray and Hume regional development areas and in the surrounding region.
- Employment opportunities – the project will employ a diverse range of consultants, contractors and construction workers, and it is expected to generate major opportunities for up-skilling and job training over the seven-year construction period which will improve individual skills and employability for future projects.
- Local industry and Indigenous business involvement opportunities – the managing contractor will be required to provide detailed commitments on how they will utilise Australian industry including provision of opportunities for local businesses to supply construction materials and labour and opportunities for small to medium enterprises through construction trade packages. Additionally, in accordance with the Government’s Indigenous Procurement Policy, the managing contractor will develop an Indigenous participation plan which will provide opportunities for Indigenous business involvement with the project.
- At the public hearing, Defence explained that the existing gas network will be reduced as part of the works, in line with Defence’s broader policy initiative to move towards net-zero emissions:
…the new mess will be an electrified system—so the cooking elements will be non-gas—and in the redundant messes that gas infrastructure will be removed. Existing facilities that aren't part of the redevelopment will continue to have gas operations for some of the heating…
Committee comment
6.34The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
6.35The Committee recognises the need for the redevelopment of the site, given the age of much of the existing infrastructure.
6.36The Committee supports Defence’s attempts to bolster recruitment and retention of their workforce by creating a favourable living experience for Albury Wodonga Military Area trainees and recruits.
6.37The Committee appreciates Defence’s efforts in ensuring that the impact of the work to the natural environment (the threatened ecological community and the Avenue of Honour trees) is minimal.
6.38Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
6.39The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Defence — Albury Wodonga Military Area Redevelopment project.
6.40Proponent entities must notify the Committee of any changes to the project, scope, time, cost, function, or design. The Committee also requires that a post-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.