NSW’s major transport infrastructure projects are facing significant cost increases, with the price of the metropolitan city of Sydney and the south-west running out at around $ 6 billion.
Key points:
- Metro City and South West are due to be completed by 2024
- The price increase occurs in a context of rising construction costs
- An NSW Infrastructure report released earlier this year recommended that some megaprojects be delayed
The increase was evident in the state budget, which was made public on Tuesday.
The project is estimated to cost between $ 11,500 and $ 12.5 billion.
So far, the government has already spent nearly $ 13 billion on the Tube link that will connect Chatswood under Sydney Harbor to new stations on the CBD and south-west to Bankstown.
Budget documents show the government expects the project to cost $ 5.1 billion over the next four years.
It is expected to be completed in 2024, 10 years after construction began.
The first stage of the Parramatta Light Rail has also cost $ 475 million.
Transport for NSW has been contacted for comment.
A Sydney Metro spokesman said the additional costs reflected market conditions beyond government control, including the COVID-19 pandemic.
“The revised cost of the project includes $ 1.7 billion in costs attributable to COVID, which caused a significant disruption to critical labor, construction production, the supply chain and the program,” he said. say the spokesman.
Other Sydney projects have stalled as the government shifted its priorities in this budget, with only $ 1 million committed during the 2022-23 fiscal year to plan the Beaches Link.
This decision followed a report by NSW Infrastructure, which recommended abandoning some “megaprojects” in favor of smaller ones due to labor shortages and the continuing impacts of COVID-19.
$ 602.4 million has been blocked in funding for the second stage of the Parramatta Light Rail, which will allow for detailed planning as well as the construction of a new bridge over the Parramatta River at Melrose Park on the proposed route.
Opposition transport spokeswoman Jo Haylen said the money wasted in bursts meant less funds for projects “desperately needed in the fast-growing areas of west Sydney”.
“In real terms, this $ 6 billion explosion means $ 6 billion of infrastructure pipeline forever,” he said.
“It means growing communities will have to wait longer before getting new transportation services like the high-speed bus, the second stage of the Parramatta light tram and the airport subway.
“It is not surprising that the government has not announced any new transport projects west of Parramatta. They have blown the budget over existing projects.”
Posted 7 hours, 7 hours ago, Tuesday, June 21, 2022 at 5:50 AM, updated 6 hours ago, 6 hours ago, Tuesday, June 21, 2022 at 6:36 AM