Berejiklian Government has written proof light rail builder Acciona was warned of potential problems
THE Berejiklian Government says it has written proof the Spanish contractors holding the light rail project to ransom were warned of potential problems facing the project all detailed in a 40-page response to Acciona’s $1.1 billion lawsuit against it.
NSW
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THE Berejiklian government says it has written proof the Spanish contractors holding the light rail project to ransom were warned of potential problems facing the project.
The Daily Telegraph has obtained a copy of the state government’s 40-page response to light rail builder Acciona’s $1.1 billion lawsuit against it.
It reveals a crucial part of Transport for NSW’s argument will rest on the claim Acciona was given specific documents about the cables and wires underneath the route which Acciona says caused huge delays.
Acciona filed its lawsuit against Transport for NSW in April, claiming it had engaged in “misleading or deceptive” conduct and “induced” Acciona to sign the contract to build the $2.1 billion light rail on false information.
Acciona said it only signed the contract because it falsely believed Ausgrid had accepted its plan to deal with its electricity cables and pits beneath the route.
But the government is arguing Acciona knew this was not the case and even had its legal representatives “specifically negotiate” a clause which said Acciona could be given extra time and money if plans for utilities were “materially different”.
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Transport goes on to say a month after Acciona claims it became aware of the “Ausgrid Guidelines” it signed an agreement referring to its obligation to comply.
“It’s only now … when Acciona will be liable to pay substantial sums by the way of liquidated damages if it is late in completing its works … that Acciona brings these proceedings,” the Transport for NSW document states.
The agency also says Acciona was given access to an electronic “data room” before signing the contract where it was able to access documents to help it understand “issues and challenges”.
And Transport arranged workshops where potential contractors — including Acciona — were able to speak to Ausgrid.
“At all times prior to Acciona entering into the D&C Contract, it was known to parties that a significant issues for light projects generally, including this project was the management and treatment of existing utility services along the route,” Transports document states.
Earlier this year The Daily Telegraph revealed Acciona’s history of legal battles against governments and that it had also been involved in behind-schedule projects in Canada and Spain.