CLP’s Gerard Maley questions overpass budget blow-out

Another key NT government infrastructure project has copped a $100m cost overrun. We reveal how the controversial project’s budget has gone off track.

The Northern Territory government has acknowledged a $100m cost blow-out at one of its signature projects.

Originally budgeted at $61.5m, the Tiger Brennan Dr-Berrimah Rd overpass is now expected to cost $165m.

Infrastructure Minister Eva Lawler conceded the cost hike in response to a question by the CLP Deputy Leader Gerard Maley.

Ms Lawler blamed “significant material and supply market increases” on the cost hike as well as “site investigations and extensive design work”.

The Berrimah Road-Tiger Brennan Drive overpass has blown-out by at least $100m

Mr Maley said the $100m price increase was “unacceptable”.

“This project was initially set down for about $60m now it’s gone up to $160m, that’s a $100m of taxpayers money that’s been spent on a project that hasn’t been tendered,” he said.

“It’s just going out to select tenders or into the actual main tender or by a variation and it just shows that this Labor government have lost control of that project by spending $100m of taxpayers money on a project that was originally funded for $60m.

“It’s just completely unacceptable that there’s a $100m cost blowout in a project that’s been planned and managed by the Labor government.

Deputy Opposition Leader Gerard Maley criticised the government for the overpass cost blow-out. (A)manda Parkinson

“It just goes to show they have lost control of our economy, which already has $9bn worth of debt and this is another project where they’re spending $100m of taxpayers money which could be spent on places like the police, the hospital or education.

“This is an overpass that’s going to affect lots of people – it affects me when I drive into town – but it’s not a project that you build at any cost.”

Sitzler was awarded the initial $65m contract and then related supporting infrastructure, including road upgrades at the Tiger Brennan Dr intersections with Amy Johnson Dr and Wishart Rd.

Tom Harris, chief executive of the NT Civil Contractors Federation, said that additional works would have contributed to the cost blow-out.

“A number of construction components have been added to this project which has resulted in the government having to allocate more financial resources to it,” he said.

“It is a far bigger scope than the original project, with significant additional associated works added.”

Chief Minister Natasha Fyles said while not being across project specifics, construction costs had risen sharply.

“We are seeing significant cost escalation with getting projects that are coming back 30 per cent and 40 per cent above what they would have been just a couple of years ago so there’ll be a number of factors to why that cost has changed from the initial scope and I’m happy to get further advice,” she said.

A government spokeswoman sought to clarify the increases.

“An increased funding commitment is not unusual in large scale projects like this and follows extensive design and site investigation works while also taking into account market increases in the civil construction market,” the spokeswoman said.

The commonwealth and Territory governments are each funding half the project cost.

Originally published as CLP’s Gerard Maley questions overpass budget blow-out