SA allocated only two-thirds of promised $3.2bn for major road projects in Federal Budget

SA was promised $3.2bn in major road project funding. Just two-thirds of it is actually in the Federal Budget – and only $130m this year.

Only two-thirds of South Australia’s promised $3.2bn for major infrastructure projects, including the next part of the North-South Corridor, has been allocated over the next four years in the Federal Budget.

And just $130.8m is allocated in the 2021/22 budget.

Budget papers reveal $2.1bn of the pledged cash splash has been earmarked within the Federal Government’s forward estimates, which take in the next financial year to 2024/25, inclusive.

It is unclear when the remaining $1.1bn will be handed over.

Overall, SA has been promised $10.7bn for transport infrastructure, from smaller local road upgrades to nationally significant thoroughfare projects, over the coming years.

The budget papers also show the bulk of the $3.2bn in major infrastructure funding is not set to start flowing through until 2023/24.

In 2021/22, only $130.8m will be paid out while $341.6m has been allocated for 2022/23.

In the following two years, $823.6m and $807m will be distributed, respectively.

The importance of the North-South Corridor was highlighted in Treasurer Josh Frydenberg’s budget speech on Tuesday evening when the project was the first he named while spruiking the Federal Government’s infrastructure spend.

An artist impression of the proposed start of the North-South Corridor’s motorway at Darlington.

“(We’re) building the infrastructure our economy needs for the future with our 10-year, $110 billion investment pipeline,” he said.

“Tonight we make $15 billion in additional infrastructure commitments including for the North-South Corridor in South Australia.”

The next stage of the North-South Corridor project, which is expected to create about 4000 jobs, has been allocated $2.6bn in the budget – a re-announcement of funding from 2019.

It will pay for planning, design and construction work on a 6km motorway from Darlington to Anzac Highway.

This work will also include about 4km of tunnels.

However, construction work will not begin until late 2023.

As The Advertiser reported on Monday, the Civil Contractors Federation SA raised concerns about the time lag between government budget announcements and construction start dates.

“Far too much time passes between these events,” Federation chief executive Rebecca Pickering said.

“There needs to be greater accountability of state government and agencies to minimise this time and get on with construction.”

The Opposition said “we need construction work underway” given SA has the worst unemployment rate in the nation.

The Advertiser reported on Sunday that as part of the $3.2bn promised for major SA infrastructure projects, $161.6m will go towards a Truro bypass; $148m will be directed into stage two of the Augusta Highway duplication; and an extra $64m will be injected into the Strzelecki Track upgrade, bringing the Federal Government’s total funding for the outback project to $164m.

Other transport infrastructure funding for SA includes $3.6bn for nationally significant road projects; $374.2m to tackle urban congestion; $155.8 for the Adelaide City Deal; $210.8m for local roads and community infrastructure; and $222m to improve access routes to essential services, markets and employment opportunities.

SA will also receive $19.5m for bridge upgrades and $21.6m to improve safety and productivity of heavy vehicles.