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Acciona awarded $7.9 million contact to build road for hospital

The Spanish light rail company accused of holding Sydney to ransom and leaving business owners in ruins has been given a new multimillion-dollar state government contract, The Daily Telegraph can reveal.

Why the Light Rail is taking so long?

The Spanish light rail company accused of holding Sydney to ransom and leaving business owners in ruins has been given a new multimillion-dollar state government contract.

Health Infrastructure has awarded the construction giant a $7.9 million dollar contract to build an entry road for the new Macksville Hospital and complete early earth works.

The contract did not go to public tender and was awarded directly to Acciona which is working with fellow Spanish multinational Ferrovial.

They are completing the works under the name Pacifico Acciona Ferrovial.

It comes as CBD businesses brace for another disruptive Christmas period caused by the light rail.

Acciona has been accused of causing disturbances and leaving businesses in ruins as the light rail won’t be completed until early 2020. Picture: Jenny Evans
Acciona has been accused of causing disturbances and leaving businesses in ruins as the light rail won’t be completed until early 2020. Picture: Jenny Evans

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Despite a promise barriers would be removed “by November” in the north of the CBD and Surry Hills they are still causing disruptions to businesses.

A Health Infrastructure spokeswoman said it had followed “procurement processes” ensuring “best value for money”.

“Direct Negotiation does not involve a tender process, but is an accepted and appropriate form of procurement used in cases where specialist work is required,” she said.

She also said Pacifico Acciona Ferrovial had completed similar work for the RMS on the Pacific Highway upgrade in Northern NSW. However this project also experienced delays which the RMS blamed on wet weather.

The Spanish company is working under the name Pacifico Acciona Ferrovial. Picture: Nathan Edwards
The Spanish company is working under the name Pacifico Acciona Ferrovial. Picture: Nathan Edwards
Work has already begun for the entry road for the new Macksville Hospital. Picture: Nathan Edwards
Work has already begun for the entry road for the new Macksville Hospital. Picture: Nathan Edwards

City of Sydney councillor Angela Vithoulkas, who has organised a class action against Transport for NSW over the impact the light rail, blasted the state government­ for awarding Acciona another contract.

“I have to wonder how the government could go to Acciona again and behind closed doors, indicating they are deliberately hiding it from the voters of NSW,” she said.

Opposition transport spokeswoman Jodi McKay said the fact the government had awarded Acciona the new contract showed the light rail bungles were Transport Minister Andrew­ Constance’s fault not Acciona’s.

“Andrew Constance can’t have it both ways — publicly blaming and shaming a contractor for his own failures while his colleagues are quietly awarding the same company more contracts,” Ms McKay said.

Opposition transport spokeswoman Jodi McKay said the light rail failures is linked to Transport Minister Andrew Constance. Picture by Peter Lorimer.
Opposition transport spokeswoman Jodi McKay said the light rail failures is linked to Transport Minister Andrew Constance. Picture by Peter Lorimer.
Constance fire back, calling McKay an “Acciona cheerleader”. Picture: Toby Zerna
Constance fire back, calling McKay an “Acciona cheerleader”. Picture: Toby Zerna

Mr Constance hit back by attacking Ms McKay as an “Acciona cheerleader”.

“What Jodi fails to understand is that the government doesn’t have a direct contract with Acciona for light rail. Our contract is with Altrac, not Acciona as she claims,” Mr Constance said.

“I find Jodi’s advocacy for Acciona concerning given its poor performance on the Sydney Light Rail.”

Acciona is suing Transport for NSW for $1.1 billion claiming it had engaged in “misleading or deceptive” conduct and “induced” Acciona­ to sign the contract to build the light rail on false information.

The project has been hit with ongoing delays and is expected to open a year late in May 2020.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/acciona-awarded-79-million-contact-to-build-road-for-hospital/news-story/08455bfe5cf0526d3d332a53fa2dda58