All the major road and infrastructure projects for SA in the Federal Budget
Major road funding projects in the Federal Budget for SA have already been revealed – but states have been warned not to drag their feet, or lose funding altogether.
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The states will be pitched against each other in a $2bn “use it or lose it” battle for road safety upgrade funds, while South Australia has been delivered $625m to get priority projects moving, led by the high-profile, but as yet unplanned, $200m Hahndorf access upgrade.
There were no big surprises for South Australia in Treasurer Josh Frydenberg’s pandemic budget, as the main projects have been flagged well ahead of time.
At the top of the bill is the Hahndorf project, which has been attacked by the state Opposition as being still in the planning stages and far from “shovel ready”.
The other new major transport infrastructure announcements included:
■ $136m for the Princes Highway corridor (intersection upgrades, overtaking lanes, resealing, rest areas, safety and signage upgrades, shoulder sealing)
■ $136m for the Main South Road duplication stage 2, Aldinga to Sellicks Beach
■ $100m for the Strzelecki Track upgrade
■ $28m for the South Eastern Freeway safety upgrade, and
■ $12m for the Victor Harbor Road upgrade.
An additional $13.2 million would be allocated to the upgrades of the Goodwood and Torrens rail junctions, while the Government will bring forward $20.3m for the Eyre Peninsula Network.
The road funding money to be spent in SA starts with $101.1m this financial year – the lowest figure across the forward estimates – before jumping up to $154.7m in 2021-22.
The exact projects to be funded under the $2bn JobMaker road safety plan have not been identified, but with the money to be spent over two years, there is a push to get it out the door fast.
“Road safety projects such as road widening, centre lines and barriers will be identified and delivered by jurisdictions in three six-month tranches to improve safety on Australian roads while stimulating local economies,’’ the budget says.
Mr Frydenberg was unapologetic about the need to spend this money fast.
“Funding for these shovel-ready projects will be provided on a use it or lose it basis,’’ he said.
“If a state drags its feet, another state will get the money. We need works to start, not stall. We are also expanding the Local Roads and Community Infrastructure program.
“Investing an additional $1bn to support local councils immediate upgrades of local roads, footpaths and street lighting. These investments in our local communities will support local jobs.’’
State Treasurer Rob Lucas said the State Government had a series of “projects ready to go” to tap into the $2 billion in road funding.
But state opposition treasury spokesman Stephen Mullighan said SA did not get its fair share of much-needed infrastructure funding
He said funding for the final stage of the North-South Corridor was “stuck in the slow lane, with no funding brought forward to get this stalled project started and create thousands of jobs”.
On the energy front, the proposed interconnector between SA and NSW, which would cost about $1.5bn to build, will be eligible for part of $250m set aside to accelerate a number of large-scale power transmission projects.
The state is also in the running for $70m in funding over five years to build the nation’s first hydrogen hub, with Port Bonython earmarked as a potential site.
There is $50m in funding for carbon capture and storage projects, which Adelaide-based energy company Santos is keen to get a share of for its project at the Moomba gas processing plant.
An additional $2bn in funding for projects through the National Water Infrastructure Development Fund was announced, more than doubling it to $3.5bn.
More cash for Osborne shipyards
Money will be pumped into the Osborne shipyards by the Federal Government, but it is not saying how much.
The budget papers say the Australian Naval Infrastructure will be provided with “an additional equity injection over two years from 2020-21 to support further infrastructure works at the Future Submarine Construction Yard and to undertake planning for future infrastructure works at the Osborne precinct in South Australia’’.
“This investment will support the government in delivering its historic $90 billion Naval Shipbuilding Program, bolstering Australia’s sovereign defence capability and national security,” the budget papers say.
“The equity injection for this measure is not for publication due to commercial sensitivities.’’
Naval Group and BAE Systems respectively will build Australia’s Future Submarines and Future Frigates at the Osborne shipyards.