The NSW government has almost confirmed that it will clear several of its key infrastructure projects as it tries to prioritize its large ticket spending.
Key points:
- Government has not committed money to the Beaches Link Tunnel, the M6 Highway and the Blue Mountains Tunnel
- It will proceed with the Parramatta Tram on the basis that it is essential for the growth of the area
- The second stage of the light rail project is not yet fully funded
Prime Minister Dominic Perrottet said his government would push through the second stage of the Parramatta light rail project with a four-year funding commitment to be announced in the state budget on June 21.
But the government has stopped pledging money or deadlines for its other “mega-projects” such as the Beaches Link tunnel, the M6 highway, a Blue Mountains tunnel and regional dams.
It comes after a report released yesterday by NSW Infrastructure recommended abandoning some “mega-projects” in favor of smaller projects that provide “more returns”.
The independent body argued that it would be increasingly difficult for the NSW government to deliver complex, multimillion-dollar projects due to labor shortages and the continuing impact of the COVID-19 pandemic.
“It would be especially difficult to offer additional megaprojects in a cost-effective way in the coming years,” the report said.
Perrottet has accepted today that “market restrictions” meant that the government should prioritize its spending.
“There is … a global drive to invest in infrastructure, labor shortages and rising cost of materials; world, “he said.
“So it’s right that we sit there, as we always do, and look at the portfolio of these projects and make sure we sequence them in a way that works.”
The decision means major projects such as the Beaches Link Tunnel are on hold indefinitely, despite government guarantees that it remains committed to all promised projects.
“What you’re going to see over the next decade here in NSW is doing large-scale infrastructure projects,” Perrottet said.
“But ultimately, right now we need to be very clear on the market what the pipeline is, and today as a government we have said it is Parramatta Light Rail.”
Impression of a light rail line artist completed. (Provided by: NSW government)
The government has justified continuing with the second stage of the Parramatta tram arguing that it is crucial for the growth of the region.
Funding for the first phase of the works associated with the second stage of the light rail, which will link Parramatta CBD with Sydney Olympic Park, will be detailed in the state budget.
But Infrastructure Minister Rob Stokes has confirmed that the entire second stage was not yet fully funded.
“We can have it all, we can’t do it all at once,” he said.
“There are established processes where we go through the planning process, the hiring process and then we move on to delivery.”
Construction of the second stage of the Parramatta tram will begin as soon as the first stage is completed.
The first stage is expected to be completed in 2023.
Posted 1 hour, 1 hour ago on Wednesday, June 1, 2022 at 3:46 AM, updated 55 m ago, 55 minutes ago, Wednesday, June 1, 2022 at 4:43 AM