M1 Pacific Motorway — Mudgeeraba to Varsity Lakes

 The Mudgeeraba to Varsity Lakes section of the M1 Pacific Motorway carries up to 90,000 vehicles per day, a volume which exceeds the practical capacity of the current four lane motorway. Traffic demand for this section of the motorway is growing, and is expected to exceed 110,000 vehicles per day by 2036. The Australian Infrastructure Audit (the Audit) projected that, in the absence of intervention, the cost of congestion in the corridor would increase from $26 million in 2011 to $125 million in 2031. The freight task on this section, currently 7,000 heavy vehicles per day, is growing at 3–4% per year. The project proposes to widen a 5km section of the motorway from four to six lanes between Mudgeeraba Road/Robina Town Centre Drive (Mudgeeraba) and Reedy Creek Road (Varsity Lakes). This will involve widening the motorway into the central median area, providing a central concrete barrier, reconstructing the Mudgeeraba Creek bridges, and lengthening entry and exit ramps. The upgrade proposal includes installation of managed motorway enabling technologies which are proposed to become operational when the entire Nerang to Tugun section is upgraded. The project would provide an additional 50% in traffic capacity, which is expected to address congestion on the section for the next 15–20 years. It would complement recently completed upgrades between Nerang and Tugun. The benefit-cost ratio (BCR) stated by the proponent is 3.5, using a 7% discount rate and P90 capital cost estimate. Infrastructure Australia has identified a number of risks to achieving this BCR, primarily relating to the traffic modelling used in developing the business case, and the calculation of time savings. However, after allowing for adjustments to the BCR to account for these risks, Infrastructure Australia remains confident that the benefits of the project would exceed its costs. The P90 estimated capital cost for the project is $220 million. The proponent is seeking an Australian Government contribution of 80%