The cost of a major construction project to build a rail line that will run under Sydney Harbour is likely to blow out by up to A$3 billion, the New South Wales government has admitted.
The 30km Metro City and Southwest rail project, to link Chatswood with the CBD and Bankstown, was expected to cost between A$11.5 and A$12.5 billion, but additional costs mean it could now be up to A$15.5 billion.
“I am sorry it happened this way but it is very much market forces at play in terms of the build,” Transport Minister Andrew Constance told The Sydney Morning Herald on Friday.
The Australian Broadcasting Corporation reported that Constance blamed market forces and said that the costs from major contractors increased due to the infrastructure sector being more in demand.
‘The contractors market has shifted and that’s put pressure on,” he said. “This is an eight to nine year build, no one predicted the heat in the market and we’re sorry that’s happened.
“This is a major build for our state, the biggest transport project in the nation’s history, and we delivered the first stage of this a billion dollars under budget.”
Opposition Leader Jodi McKay questioned Constance’s assertions.
“This is due to mismanagement,” she said, reported the ABC. “The Government knew about this blowout when it went to the election and it didn’t tell the community.
NTD staff contributed to this report.
