ARNOLD DIX

CONSULTANT

Wednesday, 25 February, 2015

The Hon. Daniel Andrews MP
Premier of Victoria
Level 1, 1 Treasury Place
East Melbourne
VIC 3002
Australia
Dear Mr Premier

RE: NO RETROSPECTIVE LEGISLATION - EAST WEST LINK

We write to you in your lawful capacity as Premier of the democratically elected Government leading
the Sovereign State of Victoria, Australia.
Victoria represents itself to investors internationally through its global network of Business Victoria
offices as a trusted partner in international business a preferred destination for investment in
Australia.
Victoria enjoys a triple AAA credit rating.

We represent the collective international opinion of best legal practice in major global infrastructure.

We are Members of a Working Group on Contractual Practices one of thirteen working groups
established by the International Tunnelling and Underground Space Association (ITA). ITA is a nongovernmental association with 71 member nations.

The International Tunnelling Association (ITA), which is the United Nations only recognised NGO body
on subsurface infrastructure.
We write to implore your government, as commanders of the Sovereign of the State of Victoria NOT to
enact legislation to alter the rights and obligations between the State of Victoria and the companies it
has lawfully contracted with.
In our extensive collective international experience, it is our firm view that enacting retrospective
legislation to alter the rights and obligations to avoid any lawfully executed contract will incur large
direct and indirect costs to the State of Victoria and Australia as a whole.

The impact upon the perception of Victorias and Australias Sovereign risk is significant. It would
certainly result in decreased access of Australia to foreign capital, increased interest charges, a
decayed sovereign risk profile (degraded credit rating) and a lack of local and international confidence
in the Sovereign to honour such agreements in the future.
In addition, it will likely decrease competition amongst local capital funds, experts and construction
companies for future projects in Australia.
Scientist and Lawyer
Subsurface Infrastructure
Associate Professor, UWS

Email: counsel@arnolddix.com
Phone: +61 (0) 419 688 890
Facsimile: +61 (0) 3 9012 4217

We are not aware of any Government in a developed and economically and politically mature country
ever enacting retrospective legislation to limit the lawful entitlements of international specialist tunnel
construction consortiums under an executed contract.
Given the extremely damaging medium and long term financial cost and international confidence
consequences for Victoria and Australia of Victoria enacting retrospective legislation, we urge your
Government not to make new laws that retrospectively change the States obligations under the
existing East-West Link contract.
Sincerely

Professor Arnold Dix (Australia) Scientist & Lawyer

Chairman Contractual Practices Group ITA

Members in support of this letter include:

Mr. Bakogiannis & Petros Fortsakis (Greece)
Patrizio Torta (Italy)
David Caiden (United States)
Thomas Dalmailm (Sweden)
Alan Hodgkinson (Switzerland)

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Arnold Dix