Cross Yarra Partnership has signed a contract with the Melbourne Metro Rail Authority for work on the A$11bn ($8.4bn) Metro Tunnel project in Australia.

The partnership, which features Lendlease, John Holland, Bouygues Construction and Capella Capital, was selected to deliver a A$6bn ($4.59bn) tunnel and stations package in support of the development.

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"The project, which will allow Lendlease to leverage its expertise across the disciplines of engineering, development, building and finance, will greatly enhance connectivity across Melbourne."

The deal covers the financing, design, construction and maintenance of the package for a period of approximately 25 years.

Cross Yarra Partnership is set to build two 9km-long tunnels and five new underground stations at North Melbourne (Arden), Parkville, State Library, Town Hall and Anzac under the arrangement.

Lendlease will also be responsible for delivering over-site development at Town Hall Station.

Lendlease Engineering and Services CEO Craig Laslett said: “The project, which will allow Lendlease to leverage its expertise across the disciplines of engineering, development, building and finance, will greatly enhance connectivity across Melbourne while revitalising landmarks across the city.

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“The selection of Lendlease, as part of the consortium to deliver the Metro Tunnel, recognises our major project experience, civil engineering capability and our strong commitment to safety, training and employment.”

Preliminary work on the initiative has already commenced and major operations are scheduled to begin next year.

The whole project is expected to be completed by 2026.

In addition, the Government of Victoria has also signed a contract with CPB Contractors and Bombardier Transportation to commence high-capacity signalling work along the metro tunnel.