State government defends $2.7bn price tag for Gabba Olympics revamp

Deputy Premier Steven Miles has strongly defended the $2.7bn cost for the Gabba rebuild after it was revealed the project was initially greenlit without a comprehensive business case.

Deputy Premier Steven Miles has strongly defended the $2.7bn cost for the Gabba rebuild after it was revealed the project was initially greenlit without a comprehensive business case.

The government this week was forced to confirm the $1bn original figure came from a business plan, rather than an extensive business case, following a parliamentary committee hearing involving the Auditor-General Brendan Worrall.

Deputy Steven Miles during Question Time this week. Picture: NewsWire / Sarah Marshall

“The earlier indicative cost of the Gabba redevelopment was in 2020 dollars, and excluded construction cost escalation and supply chain constraints, and other costs unknown at the time,” Mr Miles said.

“It predated the post Covid increases in costs, the global inflation surge and the war in Ukraine. All events that were not predicted in 2020.”

The Deputy Premier said the new cost estimate included costs at the anticipated time of delivery, in 2026-2030.

“Now that we have settled on a preferred redevelopment option, the Olympics and Paralympics Infrastructure Office within my department will now focus on completing the Project Validation Report ahead of taking the project to market. It is due to be completed in mid-2023,” he said.

“Once the Project Validation Report is complete, a competitive market process will be launched to allow the design of the Gabba to be developed and for the associated construction works.”

An artist’s impression of a redeveloped Gabba stadium for the Olympics and Paralympics.

Mr Miles told parliament “given the complexity of building on a constrained site, completely rebuilding the Gabba is better value for money than trying to bring it to a truly accessible, modern standard”.

“The cost to deliver this project is estimated at $2.716 billion,” he said.

“Let us be very clear. If you are unwilling to fund what it is estimated to cost you will not be able to build it - and Queensland will miss this historic opportunity to have a world class oval stadium close to town and the urban renewal that will come with it.”

Mr Miles said the revised estimate incorporated a “significant price escalation” through to construction completion, as a result of the prevailing market conditions.