Western Sydney Airport cost to be borne by Sydney Airport under government plans

SYDNEY Airport will not get a cent from the Federal Government if it decides to build the new airport in Western Sydney – and that decision could take up to nine months.

Grounded: plans for Sydney’s second airport have faltered as Sydney Airport and the Federal Government debate about who will foot the bill. Photographer: Carla Gottgens/Bloomberg

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PLANS for Sydney’s second airport may be delayed as the Federal Government puts the cost solely on Sydney Airport.

Federal Urban Infrastructure Minister Paul Fletcher said in December 2016 that Sydney Airport would have to fully fund the airport’s construction and operation in exchange for its economic benefits over the next 99 years.

If Sydney Airport refuses the offer, the Federal Government will have to develop and operate the airport, or offer the opportunity to the private sector.

Earthmoving was to begin at the site in 2018, with airport operations to commence from 2026.

However, Mr Fletcher said he was not worried about the airport’s development.

An aerial photo of the site of the Western Sydney Airport in Badgerys Creek. Picture: Jonathan Ng

“I am confident the terms the Commonwealth has put to Sydney Airport are in the public interest – with a view to securing a high-quality airport in the required time frame,” he said.

Sydney Airport CEO Kerrie Mather said the Western Sydney Airport would require Commonwealth support to be viable.

“Project risks include procurement and construction risks over the approximate 10-year period before the airport opens, and operational, traffic, financing and political risks,” Ms Mather said.

The Federal Government advised Sydney Airport it has four months to consider the offer – but Sydney Airport believes it is entitled to nine months of consideration.

Sydney Airport is now conducting market research to estimate the cost before making a decision.