Melbourne dredging project under budget by $248m

Mr Brumby said the project cost $721m - less than the original budget  of $969m.

"When the Channel Deepening Project was completed last November, we expectedc project savings, but I am pleased to say this vital major project was delivered $248 million under budget, which includes environmental monitoring costs to 2012," he said.

"The project was delivered ahead of schedule, within strict environmental guidelines  which shows the strength of the Victorian Government’s commitment to the prudent management of major infrastructure projects."

He said the budget savings were the result of several factors including good weather, better dredging productivity, use of an extra dredging vessel and careful project management by the Port of Melbourne Corporation.

Mr Brumby said the project would deliver an extra $2bn to the Victorian economy during the next 30 years.